Rishi Sunak has denied a vow to slash income tax is an attempt to rescue his faltering Tory leadership campaign as he appeared to suggest his opponent’s proposals would “endanger people’s mortgages”.
The former chancellor said the announcement he would cut the basic rate from 20 to 16 per cent within seven years was “entirely consistent” with his previous policies.
He has been accused of staging two U-turns in a week just as ballot papers land on on the doorsteps of Conservative party members up and down the country.
On BBC Radio 4’s Today programme, Mr Sunak insisted that his tax plans were not a bid to “rescue his position” in the Conservative leadership contest.
“No, no, definitely not, this is entirely consistent with what I’ve been saying for a long time,” he said.
In an apparent dig at Liz Truss, who has pledged to cut taxes from day one of her premiership if she wins, he added that there was still a “huge difference” between their plans.
His proposals were “entirely different to doing things right now that would make the (inflation) situation far worse and endanger people’s mortgages,” he said.
He went on: “I don’t think embarking on a spree of excessive borrowing at a time when inflation and interest rates are already on the rise would be wise. I think everyone gets that that is a point of differentiation between us.”
As chancellor, Mr Sunak did set out an ambition to take a penny off the basic rate of income tax in 2024.
In his latest announcement, he went further promising to cut the rate from 20 pence in the pound to 16 pence by the end of the next parliament, if he becomes prime minister.
He has promised to pay for the move by stimulating growth in the economy.
His supporters say the plan means the proposals are “fully costed”, unlike Ms Truss’s.
But Simon Clarke, the Chief Secretary to the Treasury and a supporter of Mr Truss hit back saying: “We cannot afford to wait to help families, they need support now. Liz will cut taxes in seven weeks, not seven years.”
A series of cabinet endorsements over the weekend suggest senior Tory MPs now believe Ms Truss is the clear favourite to win the contest. She has the backing of 10 cabinet members, twice her rival’s tally.
Overnight Nadhim Zahawi, the chancellor, came out in support of Ms Truss, saying that she would “overturn the economic orthodoxy” to turbocharge growth.
He also described her as a “booster” and Mr Sunak as a “doomster”.
Over the weekend Ms Truss also secured the endorsements of the former Northern Ireland Secretary Brandon Lewis and ex-Tory leadership candidate Tom Tugendhat.
A huge number of Tory members are expected to vote for their next leader within days of receiving their ballot papers, even though the winner will not be announced until September 5.
Mr Sunak and Ms Truss will go head to head again tonight in the latest official hustings organised by the Tory party.
Mr Sunak also accused those who believe he stabbed Boris Johnson in the back by dramatically quitting his government last month of seeing the final days of the current government with “rose tinted” glasses.
