Rishi Sunak vows to cut VAT on energy to revive UK Tory leadership bid

Sunak has pledged to scrap the value added tax on all domestic energy bills for the next year if he becomes UK prime minister, in a move his leadership rival, Liz Truss, criticized as a U-turn.

Announcing a “winter plan” to address inflation and the cost of living, Sunak’s campaign said he would introduce a “targeted, temporary and timely tax cut” by removing VAT on domestic energy bills if the energy price cap rises above 3,000 pounds ($3,610) as expected later this year.

Sunak’s campaign argued the policy would “bear down on prices,” insisting this contrasted with tax cuts promised by Truss that they warned would “stoke inflation.”