Sunak promises to cut basic rate of tax to 16%

Former Chancellor Rishi Sunak has promised the biggest income tax cut in 30 years, saying he will reduce the basic rate from 20% to 16% by the end of the next parliament if he becomes Prime Minister. The proposed move, funded from additional tax receipts generated by forecast economic growth, builds on his previously-announced 1p cut to income tax in April 2024. The reduction would see someone earning the average UK salary of £32,000 saving about £777 under the plans. Reflecting on Mr Sunak’s plan, Simon Clarke, the Chief Secretary to the Treasury, said Tory leadership rival Liz Truss “will cut taxes in seven weeks, not seven years.”

Financial Times

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