LONDON: Former British Chancellor Rishi Sunak launched a new attack on the incumbent Foreign Secretary Liz Truss's plans for tax cuts ahead of the pair's next debate in their quest to become the s new Prime Minister of the United Kingdom.
Sunak reportedly said that his rival in the Conservative leadership contest's ideas would cause interest rates to rise even more, increasing mortgage payments. He issued this warning as the Bank of England was expected to increase interest rates on Thursday to 1.75 percent, the highest level in over three decades.
The central bank is due to make a statement at noon, and analysts have warned that inflation could reach a 15 percent peak, aggravating the already terrible cost-of-living situation with rising prices. Meanwhile, the pair are also due to face off in a head-to-head debate on Sky News on Thursday evening.
As Liz pledges a more drastic proposal to reduce taxes, Sunak has come under fire from Truss for having presided over their growth while she was in No. 11 during the pandemic.
Sunak has insisted that he wants to see taxes reduced, but he contends that before making significant adjustments, inflation must be brought under control. The former Chancellor stressed there are "crucial differences" between their plans "because timing is everything".
In a statement, he said, "If we push through hasty tax cuts before we have a handle on inflation all we are doing is giving with one hand and then taking away with the other."