Rishi Sunak, trailing in the race to become the next U.K. prime minister, committed to reducing personal taxes by 20% within seven years in a move he described as the largest cut to income tax in three decades.
The announcement comes at a critical juncture in the race to succeed Boris Johnson. On Monday, the 175,000 Conservative grassroots members receive their postal ballots to elect Sunak or Liz Truss as the party’s next leader and prime minister. They’re both anxious to secure support before the summer vacation starts in earnest, with the winner announced Sept. 5.
Sunak said he would cut the basic rate from 20p in the pound to 16p — amounting to a 20% tax reduction and drawing accusations from Truss’ camp of “flip flops and u-turns” on the issue. When he was chancellor of the exchequer, Sunak announced a one-penny cut to income tax in April 2024. A further 3p reduction would come by the end of the next Parliament, as late as December 2029.
