Team Rishi Calculate Liz Truss’s Policies Will Save Taxpayers £48.3 Billion in Taxes

According to figures just released by the Rishi campaign, taxpayers will get a net saving of £48.3 billion in reduced taxes under Liz as Prime Minister compared to Rishi. This is a similar figure to calculations made by the Guardian newspaper. This is intended to be an attack line, the argument Rishi is making is that Liz will have to choose between tax cuts or handouts. When you consider that this is equivalent to some £2,000 per taxpayer you will understand what Liz means when she says she wants to “help people in a Conservative way”. The figures below are taken from Rishi’s latest press release:

Measure

Saving

Source

Cancel corporation tax increase

£19.2 billion

OBR public finances databank

Scrap Health and Social Care Levy

£17.4 billion

HMT ready reckoner

Scrap green levies

£11.6 billion

Renewables Obligation = £7.2bn (OBR)

Contracts for Difference = £1.4bn (OBR)

Green gas levy = £0.1bn (OBR)

Feed-in Tariff = £1.4bn (Ofgem / HMT)

ECO = £1.0bn (BEIS)

WHD = £0.48 (BEIS)

Make income tax personal allowance transferable

£6.7 billion

Estimate based on HMT Ministers answers given in Parliament, uprated for change in personal allowance

Defence spending to 2.5%* by 2026

-£6.6 billion

Difference between expected defence spending and 2.5% of GDP (OBR Forecast).

TOTAL TAXPAYER SAVINGS

£48.3 billion

In the Rishi campaign’s press release the tax savings are described as “costs”. This approach hasn’t been seen since 2010, when Gordon Brown would point to any tax saving proposed by the opposition and demand to know from Cameron and Osborne what spending would be cut. It is a mindset that considers the public’s money to belong to the government and any income not taxed to be a “cost”. Guido’s not sure why Liam Booth-Smith, Rishi’s policy guru, ever thought this orthodox Brownian line of attack would appeal to Tory members…

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