Rishi Sunak and Liz Truss faced each other in a fiery tory leadership debate on Monday night. Rival Truss criticizes former chancellor’s pledge as a U-turn. Rishi Sunak has promised to scrap VAT on household fuel bills for a year to tackle the cost-of-living crisis, in a dramatic U-turn, as he battles to remain in the race to become the next prime minister.
With Truss promising £30bn in immediate tax cuts, Sunak has repeatedly stressed the risks of unfunded promises, and insisted he has already taken action to cushion the blow of the sharp increase in domestic energy bills expected in October.
But as he continues to trail the foreign secretary in polls of Tory members, and with ballot papers landing within days, he announced a new handout, worth £160 for every household – despite having previously condemned the policy.
“As chancellor I knocked £400 off everyone’s energy bill and provided support of £1,200 for the most vulnerable households. This additional VAT cut will help deal with the current emergency,” Sunak said, claiming it was a benefit of Brexit that he was able to take the measure.
He added: “This temporary and targeted tax cut will get people the support they need while also – critically – bearing down on price pressures.”
Work and pensions secretary Thérèse Coffey, a key figure in Truss’s campaign, hit back, claiming that Sunak blocked a similar move earlier this year.
“DWP will shortly change the rules to ensure people keep looking for extra work until they have at least 12 hours a week with an ambition to increase that in the future, she said. “DWP had hoped to get this under way earlier this year but unfortunately was blocked by the former Chancellor.”
The new pledge came as analysis by thinktank the Resolution Foundation suggested personal tax cuts, such as those being promised by Truss, are “not a serious answer,” to the cost of living crisis.
“Rising energy bills will bite hardest for low- and middle-income households this winter, but only 15% of the cost of scrapping the national insurance rise would go to the poorer half of the population, while 28% would go to the top 20th,” the thinktank says.
After the pair squared off repeatedly over tax and spend in Monday’s bad-tempered BBC leadership debate, a snap poll of Tory members by YouGov suggested 50% thought Truss performed better, against 39% for Sunak.
On dealing with the cost of living, 55% thought Truss was better, against 34% for Sunak.
