Exclusive: Liz Truss Launches Leadership Offer with Rishi Sunak Tax Cut Challenge

The reference to reducing the size of the state indicated that Ms. Truss intends to reduce current public spending, which is expected to reach a maximum of 50 years.

It is understood Mrs Truss will launch a cost review if she wins the post, reopening a three-year deal Sunak signed as chancellor last year.

He also wants to advance the Budget, which is currently scheduled for November, according to an ally, with tax reduction plans that will be followed as soon as it enters No. 10.

Eliminating the 19 percent to 25 percent corporate tax increase payable in April and reversing the 1.25 percent increase in national insurance, which began this spring, would cost to the Treasury tens of billions of pounds.

Ms Truss indicated she would finance the measure by reducing public debt over a longer period of time than Mr Sunak, who wants it to fall in 2024.

The fiscal position is directly at odds with Sunak’s position. He has argued that now is not the time for major tax cuts, given the need to reduce inflation, which is expected to reach 11 per cent this year.

The UK is experiencing stagnation, with both prices rising and stuttering growth. The consensus among economists is that tax cuts fuel inflation, but they could also drive growth.

The battle for economic focus and timing seems to be the central struggle as candidates compete to become the next prime minister.

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