Former chancellor Rishi Sunak and Foreign Secretary Lizz Truss debated their potential tax plans during a televised debate earlier this week (26 July).

Both candidates discussed taxation policy, including the planned increase in corporation tax, the hike in National Insurance and economic growth policies.

Truss said she would scrap the 1.25 percentage point rise in National Insurance and wouldn't go ahead with the planned corporation tax increase from 19% to 25% in April next year.

She said:

"I am committed to the extra money that was announced for the NHS. It is needed to deal with the backlog, and I would fund that money out of general taxation," she said.

Truss added she would suspend green levies on energy bills for two years, which are currently £150 a year.

However, criticism was levelled at Truss after a key adviser said the fiscal stimulus of immediate tax cuts could force the Bank of England to push interest rates as high as 7%.

Sunak claims he would not cut taxes until inflation was under control and believes paying off COVID-19 debt now should be the priority.

He continued to discuss his ‘winter plan', where the 5% VAT rate on household energy would be scrapped for one year from October if the price cap on bills rises above £3,000 for the typical household.

He remains staunchly supportive of the rise in National Insurance and corporation tax, which he introduced as the former chancellor.

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