The Editor’s Digest, curated by Roula Khalaf, Editor of the FT, offers a glimpse into the top stories of the week. This week, Rishi Sunak, the Conservative leader, has pledged over £17bn in tax cuts to jumpstart his stalled election campaign. Despite this bold move, some on the Tory right criticized his manifesto for being too timid and lacking in imagination. Sunak defended his plans as bold, promising help for various groups such as entrepreneurs, pensioners, and first-time homebuyers. However, some economists raised questions about the feasibility of Sunak’s proposals, questioning whether his sums added up.
Sunak unveiled his prospectus at the Silverstone motor racing circuit, announcing a surprise tax cut for small traders in an effort to reverse polling trends showing the Tories heading towards defeat. He promised to abolish the main rate of self-employed national insurance and further cut national insurance contributions for employees. While much of the manifesto had been previously trailed, some Tory insiders lamented the absence of a “big rabbit out of the hat” in Sunak’s proposals.
Sunak assured that his policies were fully funded, aiming to cut £17.2bn a year in taxes by 2029-30, with additional funding from tackling tax avoidance and evasion. He emphasized his commitment to sound financial management, vowing to deliver spending cuts and tax cuts if re-elected. The manifesto also included promises to ease the burden of business rates for certain sectors and to permanently abolish stamp duty for first-time homebuyers.
Despite Sunak’s efforts to inject energy into his election campaign, the Tories continue to trail Labour by a significant margin in opinion polls. Some Conservatives feel that the manifesto lacks the necessary policy substance to reverse the party’s fortunes. The challenge posed by Nigel Farage’s Reform UK party, as well as criticism from Labour leader Keir Starmer, who likened the manifesto to a Jeremy Corbyn-style approach, further adds to the pressure on Sunak and the Conservative party as they approach the election on July 4.
In conclusion, Sunak’s manifesto aims to jumpstart his election campaign with promises of tax cuts and support for various groups, but faces criticism for being too timid and lacking in boldness. As the election approaches, the Tories are seeking to regain momentum and overcome their deficit in the polls through a mix of policy proposals and targeted attacks on their opponents. The coming weeks will be crucial in determining the outcome of the election and the future direction of the UK government.
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