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Telegraph: Tras considers reducing UK VAT to 15%

Liz Truss is considering cutting Britain’s VAT sales tax by up to 5 percentage points across the board, the Telegraph has reported, a move that may fend off criticism that she has no plan to tackle the country’s cost-of-living crisis .

The potential drop to 15%, flagged in a newspaper that has strongly backed its leadership campaign against Rishi Sunak, represents something of a change of heart by Truss. Hours earlier, a strongly worded editorial in the Sun called the government’s near-silence on the crisis a “disgrace” and called on Truss to abandon traditional Tory ideology.

With the contest entering its final week – with one election remaining in London on Wednesday – Truss is favored to win the support of Conservative Party members and become Britain’s prime minister.

The cut in the basic rate of value added tax will be the biggest ever and could save the average household more than £1,300 a year, the Telegraph reports. It could protect businesses from bankruptcy and may be accompanied by additional measures to help the most vulnerable pay their energy bills, which are set to almost triple this winter compared to a year earlier, the Telegraph reported, citing officials. .

Source: Capital

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