Tory leadership hopeful Rishi Sunak has pledged to scrap VAT on household energy bills if prices continue to rise later this year. The former chancellor, who has not promised tax cuts so far in his campaign, said the plan would help families with rising living costs.
Rival Liz Truss’s campaign team described the move as desperate – accusing him of a “screeching U-turn”. Meanwhile, rival Ms. Truss has pledged to cut key crime rates if she wins. She also said police forces would be encouraged to send an officer to every burglary.
The latest pledges come after a live TV debate between the two contenders on Tuesday (July 26) night was halted and taken off air halfway through when presenter Kate McCann fainted.
Viewers watching the debate saw Ms. Truss giving her answer to a question and then react with surprise than concern as a crashing noise was heard off camera. The VAT announcement marks a tactical shift from Mr. Sunak, who is trailing in opinion polls of Conservative party members, who will be the ones selecting the winner when they vote over the next month.
Under his “winter plan”, the 5% VAT rate on household energy would be scrapped for one year from October, if the price cap on bills rises above £3,000 for the typical household.
He added that the “temporary and targeted” tax cut would save average households £160 a year, and ensure people get “the support they need” while also “bearing down on price pressures”.
He has also promised to double the number of hours benefit claimants have to work before they can stop attending appointments with work coaches from 9 to 18 hours per week.
