Rishi Sunak ’s tax U-turn was unravelling tonight as economists cast doubt over his bid to scrap VAT on domestic energy bills.
The Tory leadership hopeful has vowed to drop the 5% charge from October if the energy price cap tops £3,000, claiming the measure would save the average household around £160 in the next year.
Mr Sunak, who polls suggest is trailing rival Liz Truss among Tory members, described it as a “targeted, temporary and timely tax cut”.
