Declaring Ms Truss pledged to start cutting taxes “from day one”. Many of the 11 leadership hopefuls looking to become the Tory party leader have set out competing for tax plans as a core element of their proposals. The 1922 Committee of backbench Tory MPs that organises contests will meet on Monday to decide the timetable and rules of the leadership race. The two-stage process will see Conservative MPs whittle down the candidates to two, through voting rounds, before Tory party members decide the winner.
Ms Truss, 46, indicated that she would echo her rivals in planning to slash corporation tax, reverse the National Insurance hike and reform business rates. She told the paper it “isn’t right to be putting up taxes now” and if elected she would take “immediate action” to assist with living costs. “Colleagues know I mean what I say and only make promises I can keep. I can be trusted to deliver”, she said. The foreign secretary said she would “fight the election as a Conservative and govern as a Conservative”.
The newly-appointed Foreign Office Minister Rehman Chishti also declared his candidacy on Sunday, with the 43-year-old speaking about the importance of lower taxes, a small state and a big society. The weekend saw a flurry of announcements – with most, but not all, candidates promising lower rates for individuals, businesses, or both.
So far the list of contenders for the leadership includes:
- former equalities minister Kemi Badenoch
- Attorney General Suella Braverman
- newly-appointed Foreign Office minister Rehman Chishti
- former health secretary Jeremy Hunt
- former health secretary Sajid Javid
- Trade Minister Penny Mordaunt
- Transport Secretary Grant Shapps
- former chancellor Rishi Sunak
- Foreign Secretary Liz Truss
- backbencher Tom Tugendhat
- Chancellor Nadhim Zahawi
The abundance of tax-cutting plans announced so far contrasts with Mr Sunak, who has played down the prospect of tax cuts before public finances improve. The former chancellor released a video to launch his campaign but is yet to set out his economic pitch, with more details promised in the coming days and weeks. He warned against “comforting fairy tales” that would “leave our children worse off tomorrow”, in the video published on social media.
A scramble for support:
This wide field of candidates could be narrowed down significantly within days. Conservative backbenchers will meet on Monday to finalise the rules and timetable for the contest. They’re likely to set a relatively high bar for the number of confirmed supporters needed to enter the first round of voting among MPs.
The hopefuls will then have to scramble for backers before nominations close, likely on Tuesday evening. A final two are expected to be chosen by the start of Parliament’s summer break on July 21st. Then it’s over to the Conservative Party membership to pick the winner and our next prime minister.
Ms Truss has served under three Conservative prime ministers since being elected in 2010. She was environment secretary in David Cameron’s government from July 2014 to June 2016 and justice secretary under Theresa May from July 2016 to June 2017.
The foreign secretary cut short a trip to the G20 summit of wealthy nations being held in Bali, Indonesia, last week to fly back to the UK following Mr Johnson’s resignation as Tory leader. The tax has emerged as the key pledge for many of the candidates, but questions have been raised about how it will be paid for.
Mr Zahawi, who became chancellor this week, joined the chorus of leadership hopefuls in calling for lower taxes in a fresh interview with the Telegraph, telling the paper “nothing is off the table”. A spokesman also promised that Mr Zahawi – who has faced claims that his tax affairs have been investigated – would publish his tax returns should he become one of the final two candidates in the race.
Experts have raised questions about the ability of a new prime minister to slash taxes without affecting public spending. Paul Johnson, director of the Institute for Fiscal Studies think tank, said predictions of a budget surplus of about £30bn by 2024 were calculated at a time when inflation predictions were lower.
He added that using the headroom to fund tax cuts would “almost certainly” require public sector pay cuts or more borrowing. “Everyone would like lower taxes. But [we] need to be clear about consequences,” he added. Meanwhile, Labour leader Sir Keir Starmer is set to take aim at the leadership hopefuls for signing up to “unfunded spending commitments”, describing them as taking part in an “arms race of fantasy economics”. In a speech later, Sir Keir is also expected to criticise them for now opposing tax rises introduced by Mr Johnson and Mr Sunak, after voting for them previously.
