In advance of the impending announcement of the new UK Prime Minister, Forbes Advisor highlighted insight offered by Katten Tax associate Christy Wilson on features of the fiscal pitches presented by the two remaining candidates. Christy was among several commentators who spoke with Forbes Advisor about the pledges from Liz Truss, Secretary of State for Foreign, Commonwealth and Development Affairs, and Rishi Sunak, former Chancellor of the Exchequer.
Amid rising inflation that has contributed to a cost of living crisis, Truss has proposed significant tax cuts in the near term. Christy noted that among Truss's proposals is a temporary suspension of the green levy on energy bills, which could reportedly save £153 for individuals on their energy bills.
Halting the green energy levy "definitely appeals to the public given the current cost of living squeeze," Christy told Forbes Advisor. "But this sets a dangerous precedent that 'green' levies/taxes are somehow dispensable. If 40C-plus temperatures in England earlier this month is not an indication that green levies are important, I don't know what is."
Sunak, on the other hand, has outlined a plan echoing his fiscal approach during his tenure in Prime Minister Boris Johnson's administration. With a focus on curbing inflation, Sunak has indicated his support for tax cuts after inflation is under control.
"Rishi Sunak's proposals were, in the main, drawn up in less haste," Christy told Forbes Advisor. "We can assume he had most of the economic information to work with as Chancellor. They are more credible in terms of fiscal policy, but do not have the short-term attraction of tax cuts."
"Truss vs Sunak: How the Result Could Affect Your Finances," Forbes Advisor, July 22, 2022
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