Prime Minister Rishi Sunak has expressed his desire to reduce taxes but has refused to commit to doing so before the next general election. Speaking at the Conservative Party conference in Manchester, Sunak stated that his priority was to ease living costs, opting to focus on inflation as the “best tax cut” he could deliver rather than slashing taxes. The UK’s inflation rate was 10.7% between October and December 2022, with the government targeting a rate of 5.3%.
Sunak’s interview with Laura Kuenssberg saw him being asked three times whether he would reduce taxes before the 2023 election. While he affirmed that he wanted to cut taxes, he gave no indication of when this might happen. This has led to some backlash among Tory MPs, with some voices calling for tax reductions prior to the election.
Sunak’s approach has been criticised as insufficient, with the Institute for Fiscal Studies stating that tax levels were at their highest for 70 years. While the Bank of England is urging interest rates to rise as a means of keeping inflation under control, the government has limited tools for reducing it, leading the PM to pursue a different approach.
Sunak has used other policy decisions to demonstrate his willingness to make bold choices in the face of opposition. Last month he reduced green policies to reach net-zero carbon emissions by 2050, instead opting for more incremental approaches. Furthermore, he has stressed his desire to make long-term changes that will benefit the public, although this has been met with scepticism from some quarters. Despite the Conservative Party trailing behind Labour in several surveys, Sunak remains convinced that he can rejuvenate the party’s fortunes by emphasising change
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