Ahead of the UK elections, UK Prime Minister Rishi Sunak has committed to halving net migration and introducing significant tax cuts. Unveiling the Conservative Party’s manifesto at Silverstone racetrack, Sunak emphasized economic recovery and support for first-time homebuyers as central themes.
Sunak’s announcement comes as the Conservatives trail Keir Starmer’s Labour Party by approximately 20 points in polls. Addressing party supporters, Sunak stressed that only the Conservatives could ensure economic stability, claiming that Labour would jeopardize the nation’s financial recovery. The manifesto’s key financial proposals include reducing payroll taxes and eliminating the primary tax rate for self-employed individuals by the next parliamentary term.
“We will ensure that we have lower welfare so that we can deliver lower taxes,” Sunak declared, underlining his commitment to fiscal discipline.
The Conservatives’ manifesto outlines a substantial annual tax cut of £17.2 billion by the fiscal year 2029/30. To offset this, they plan a £12 billion annual reduction in welfare spending and aim to generate an additional £6 billion per year through measures targeting tax avoidance and evasion. However, critics recall former finance minister George Osborne’s similar, unfulfilled pledges to cut welfare in 2015.
Beyond fiscal policies, Sunak promised to halve migration numbers, boost housing construction, and offer financial aid to first-time homebuyers. Yet, these pledges have yet to significantly impact Labour’s lead, with many questioning why such measures were not implemented during the Conservatives’ 14 years in power.
Sunak’s leadership has recently faced scrutiny. He cut short his attendance at D-Day commemorations in France for an election interview, provoking criticism from veterans and within his party. Despite multiple apologies, this incident has cast doubt on his leadership capabilities. Additionally, the Conservatives face pressure from Nigel Farage’s right-wing Reform UK party, which has pledged to challenge Conservative policies.
Sunak argued that after years of economic instability due to the COVID pandemic and energy price increases, the UK economy is at a critical juncture, poised for growth. He warned that Labour’s policies would undermine this recovery. However, previous tax cuts under Sunak have not significantly shifted public opinion, with many voters favoring increased investment in public services. The public continues to grapple with a 21% surge in shop prices over the past three years and the repercussions of former PM Liz Truss’s economic policies, which led to higher borrowing and mortgage costs.
In contrast, Labour has dismissed claims that it would raise taxes, specifically ruling out hikes in income tax, national insurance, VAT, or corporation tax. The party’s health policy chief recently also ruled out increasing capital gains tax.
As the UK elections approaches, Sunak’s latest policy announcements aim to rejuvenate Conservative support and challenge Labour’s substantial lead, setting the stage for a fiercely contested political battle.