Rishi Sunak is set to formally launch his campaign for the Tory leadership with a pledge to cut taxes – but only when inflation has been brought back under control.
The former chancellor will use his campaign launch event in London on Tuesday to insist he has a plan to deal with the economic “headwinds” the country is facing.
He will say it is a matter of “when” not “if” the tax burden starts to fall after coming under fire from Tory MPs for refusing to offer immediate tax cuts like the rest of the leadership candidates.
Mr Sunak will receive heavyweight support from Lord Lamont, chancellor under John Major, who said his successor at the Treasury had the courage to take the “tough decisions” needed to deal the “extremely serious” economic situation.
Allies of Boris Johnson have been scathing about Mr Sunak, whose announcement he was quitting government they believe helped trigger the slew of resignations which forced the prime minister to admit his time was up.
But in his address, Mr Sunak will seek to make a virtue of his willingness to confront difficult economic realities.
“We need a return to traditional Conservative economic values – and that means honesty and responsibility, not fairy tales,” he will say.
“I have had to make some of the most difficult choices in my life when I was chancellor, in particular how to deal with our debt and borrowing after Covid.
“I have never hidden away from those, and I certainly won’t pretend now that the choices I made, and the things I voted for, were somehow not necessary. Whilst this may be politically inconvenient, it is the truth.”
“My message to the party and the country is simple: I have a plan to steer our country through these headwinds. Once we have gripped inflation, I will get the tax burden down. It is a question of ‘when’, not ‘if’.”
Ahead of the launch event, Lord Lamont said: “The country faces an extremely serious economic situation.
“To weather the storm requires a high degree of competence, matched by the courage to make really tough decisions. The public understand this better than many politicians and will respond.
“Tax cuts unmatched by spending cuts achieve nothing. Yes, the tax burden needs to be reduced, as Rishi also believes, but only as and when the public finances allow.
“Mrs Thatcher often said dealing with the deficit comes even before reducing taxes. Deficits are just delayed taxation.
“Rishi has the skill, determination and ideas to get us through this difficult period into more prosperous times.”
Mr Sunak is the bookies favourite in the Tory leadership race and has the highest number of publicly announced supporters among candidates. He is followed on both fronts by Penny Mordaunt, the minister and former defence secretary.
The party ruled on Monday that the leadership race will be decided on 5 September.
