Team Truss accuses Rishi Sunak of U-turn on tax pledge after VAT energy cut announcement | Politics News


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A row has erupted over whether Rishi Sunak U-turned on his pledge to not cut taxes after announcing he would slash VAT on energy bills.

The former chancellor said if he becomes prime minister, he would implement the temporary measure to save the average household £160.

Throughout his campaign to become Tory leader, he has repeatedly said he wants to hold off on tax cuts until inflation is under control, while calling other candidates’ plans for tax cuts irresponsible.

He also argued against a VAT cut on energy when he was chancellor, telling the House of Commons in February: “That policy would disproportionately benefit wealthier households.”

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But on Tuesday night he said because the energy price cap is now expected to rise from just under £2,000 a year to above £3,000 in October, more help was needed to reduce the cost of living crisis.

While Mr Sunak claimed it would be “temporary and targeted”, Liz Truss’ team jumped on the announcement and said it was definitely a U-turn.

However, Transport Secretary Mr Shapps – who backs Mr Sunak – insisted it was “consistent with what he said all along, which is to always keep these things under review”.

He told Sky News’ Kay Burley: “He always said he would keep a very close eye on this.

“We now know the position coming up to this autumn with regard to gas prices in particular.

“And so, you know, he said he can do something further on energy bills. This would be a one-off.”

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1:47

Sunak hasn’t U-turned on energy bills, claims Shapps

But senior Truss ally and Business Secretary Mr Kwarteng said it was clearly a U-turn.

Mr Kwarteng told Kay Burley: “This is a U-turn.

“A few months ago, he said that [a VAT cut] on energy bills would…

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Source : skynews


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