Rishi Sunak's Tax-Cutting Pledge Decried as "Fantasy" by Liz Truss Ally

Strategic Insights -

Rishi Sunak's promise to cut the basic rate of income tax from 20p to 16p by 2029 has been dismissed as a "fantasy" by a prominent ally of Liz Truss, as the two Conservative Party leadership campaigns clash. Jacob Rees-Mogg, a senior minister and supporter of Ms Truss, called the plan the "greatest fairytale" and highlighted Mr Sunak's role in implementing tax increases during the Covid-19 pandemic. Meanwhile, Ms Truss's proposals to save £11 billion a year by cutting public sector wages have been criticized by unions, raising concerns about her relationship with Whitehall if she becomes prime minister.

Key Takeaways:

  • Rishi Sunak's tax-cutting pledge has been deemed a "fantasy" by Jacob Rees-Mogg, a senior minister and ally of Liz Truss.
  • Sunak's plan to cut income tax from 20p to 16p by 2029 is considered unrealistic by Rees-Mogg.
  • Ms Truss's plan to save £11 billion a year by cutting public sector wages has been criticized by unions, including Dave Penman of the FDA union and Mike Clancy of the Prospect union.
  • Former Chancellor Sunak's role in implementing tax increases during the pandemic has been highlighted by Rees-Mogg as inconsistent with his tax-cutting promises.
  • Ms Truss's "war on Whitehall" plan has been met with skepticism by critics, who argue it could lead to pay disparities across the public sector.
  • The Truss campaign has received an endorsement from Penny Mordaunt, a former leadership rival.
  • Ms Truss has indicated she will not proceed with plans to introduce sin taxes on unhealthy foods or ban buy-one-get-one-free promotions.

Statistics:

  • £11 billion: The amount of savings Ms Truss plans to achieve by cutting public sector wages.
  • 20p: The current basic rate of income tax, which Sunak promises to cut to 16p by 2029.
  • 2-point gap: The difference between Sunak and Truss in the latest poll of Conservative councillors, with 31% undecided.
  • 21st century: The era in which critics argue a prime minister should focus on providing solutions, rather than recycling failed policies and 1980s rhetoric.
  • August 1, 2022: The date of Dave Penman's tweet criticizing Ms Truss's "war on Whitehall" plan.

Sources:

  • [Dave Penman (Twitter), August 1, 2022](https://twitter.com/FDAGenSec/status/1553439284)
  • [Sky News](https://news.sky.com/story/rishi-sunak-faces-key-week-in-tory-leadership-contest-as-liz-truss-pledges-to-cut-whitehall-waste-12536211)
  • [Times Radio](https://timesradio.co.uk/news/jacob-rees-mogg-sunak-fantasy-on-tax-cuts/)
  • [GB News](https://www.gbnews.uk/news/rishi-sunak-has-not-failed-according-to-former-cabinet-minister-liam-fox-8590321)
  • [The Mail+](https://www.dailymail.co.uk/news/article-10946659/Liz-Truss-promises-cut-fatty-foods-tax-plans-introduce-buy-one-get-one-free-ban.html)