The tax issue will make or break the eight remaining candidates Conservative leadership race†
The tax burden in the UK rose to its highest level in 70 years under former Chancellor Rishi Sunak, who is now the bookmakers’ favorite to replace Boris Johnson as Prime Minister.
The frontrunner has promised to cut taxes “responsibly” if he becomes party leader, but only after public finances improve. However, his critics were quick to improve his track record of raising taxes during his two-year stint with the Treasury.
Earlier this year, Sunak announced a 1 pence cut in the basic income tax rate in the pound from 2024, with the rate slated to fall from 20 pc to 19 pc. But the planned tax cut has already been overshadowed by a litany of penalty increases.
The National insurance rates increased by 1.25 percentage points in April — equivalent to a 10 percent jump for many workers. The tax raid continued despite widespread calls to delay or cancel the hike amid rising costs for households.
Sunak was also accused of introducing a “hidden tax” earlier this year when he froze tax thresholds until 2026. The former chancellor also raised corporate taxes, which are set to rise from 19 percent to 25 percent next year. rival Jeremy Hunt warned, could trigger a recession.
Penny Mordaunt, Liz Truss and Tom Tugendhat have all pledged to undo the National Insurance surge if they win the leadership race. Ms Mordaunt and Ms Truss have also joined Mr Hunt, Attorney General Suella Braverman and current Chancellor Nadhim Zahawi in a commitment to halt the corporate tax hike next year.
However, former Equal Opportunities Minister Kemi Badenoch has declined calls immediate tax cuts, following Mr Sunak’s plan to tackle inflation first.
One thing is certain; tax will be at the center of the race to No. 10. We want to hear from you, readers of The Telegraph, which taxes the hopeful candidates should cut first.
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