Liz Truss urged to cut VAT to 10% as leading Tories consider tax cuts on direct energy bill aid

Liz Truss reportedly plans to halve VAT rates instead of directly helping households pay their energy bills - but critics say it will not solve daily costs Plans could see VAT halved from its current level of 20%, costing the Treasury around £60billion (
Image: Getty Images)

Liz Truss' allies are urging the Conservative leadership favorite to consider cutting VAT to 10% to help families deal with the cost of living crisis.

The future Prime Minister appears to be prioritizing the tax cut measure over targeted aid for Britons facing soaring energy bill costs, despite growing pressure on the government for him to take more direct action ahead of October's abrupt price cap increase.

Ms Truss is reportedly considering a 5% VAT cut if she enters No 10 - and some allies are pushing her towards a more drastic 10% cut which would cost the Treasury around £60billion.

The campaign team of Rishi Sunak, his ruling rival, strongly criticized the proposed measures as 'regressive' and 'flawed', with one source saying the move would actually do 'nothing to help families pay their supermarket bills", as most basic foodstuffs are not covered by VAT.

The conservative management's favorite would be c...

Politics Aug 29, 2022 0 60 Add to Reading List

Liz Truss urged to cut VAT to 10% as leading Tories consider tax cuts on direct energy bill aid

Liz Truss reportedly plans to halve VAT rates instead of directly helping households pay their energy bills - but critics say it will not solve daily costs Liz Truss plans to halve VAT but won't help households pay their energy bills, according to her team Plans could see VAT halved from its current level of 20%, costing the Treasury around £60billion (

Image: Getty Images)

Liz Truss' allies are urging the Conservative leadership favorite to consider cutting VAT to 10% to help families deal with the cost of living crisis.

The future Prime Minister appears to be prioritizing the tax cut measure over targeted aid for Britons facing soaring energy bill costs, despite growing pressure on the government for him to take more direct action ahead of October's abrupt price cap increase.

Ms Truss is reportedly considering a 5% VAT cut if she enters No 10 - and some allies are pushing her towards a more drastic 10% cut which would cost the Treasury around £60billion.

The campaign team of Rishi Sunak, his ruling rival, strongly criticized the proposed measures as 'regressive' and 'flawed', with one source saying the move would actually do 'nothing to help families pay their supermarket bills", as most basic foodstuffs are not covered by VAT.