Scots could see another £160 knocked off their winter energy bills if Rishi Sunak becomes Prime Minister.
Despite arguing against a VAT cut for months - because the un-targeted policy would not help those who really need it - Sunak has now promised to enact the policy in October when the price cap means bills are forecast to rise again.
The move is a huge shift in strategy for the former chancellor who is trailing Liz Truss and her promises of immediate tax cuts in the Tory leadership race.
Until now Sunak has presented himself as being against unaffordable “fairytale” tax cuts.
But announcing the change of tack the former chancellor said: “With the price cap expected to rise above £3,000 in October, I will move immediately to scrap VAT on everyone’s domestic energy bills for the next year, saving the average household £160.”
“This temporary and targeted tax cut will get people the support they need whilst also – critically – bearing down on price pressures.”
But the move was mocked by the Liz Truss camp who quickly pointed out that Sunak had previously rejected the idea when he was chancellor.
The u-turn which will cost £4.3 billion was roundly mocked by the Liz Truss camp
Truss supported and Business Secretary Kwasi Kwarteng told Sky News: “I’m delighted that Rishi Sunak has come late to the party and realised tax cuts are a good idea, they’re not a fairytale.
“Being a grown up means that you can have tax cuts. I’m delighted to see that he’s come round to that view.
“It’s a U-turn. Let’s not beat about the bush. This is a U-turn.”
Before he resigned as chancellor to bring down Boris Johnson, Sunak had already promised a £400 discount on energy bills, a £650 one-off lump sum to poorer families, £150 for disability benefit claimants, and £300 for pensioners to help with the cost of living crisis.
The VAT cut would apply to all households meaning that rich families who could absorb the fuel price increase would benefit from the policy.
The two candidates for the Tory crown have been sharply divided on tax until now with polling showing that half of Tory members back Truss to be their leader with 39 per cent favouring Sunak.
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