Rishi Sunak refuses to commit to pre-election tax cuts

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Sunak: Cutting inflation our 'most important priority'

By Joshua Nevett

BBC News political reporter in Manchester

Prime Minister Rishi Sunak has told the BBC he wanted to cut taxes but declined to say whether he would do so before the next general election.

Mr Sunak said his priority was easing living costs, as he faced calls to slash taxes on the first day the Conservative Party conference.

There is unrest among Tory MPs over tax and HS2 as they gather in Manchester.

And Cabinet Minister Michael Gove has told Sky News he would like to see taxes reduced before the next election.

This week, the Institute for Fiscal Studies (IFS) said tax levels in the UK were at their highest since records began 70 years ago - and were unlikely to come down soon.

In the days leading up to the conference, there have been calls for tax cuts from some Tory MPs, including former Prime Minister Liz Truss and her allies.

But Chancellor Jeremy Hunt - who will set out his economic plans in his Autumn Statement in November - said last week that tax cuts were "virtually impossible" at present.

In an interview with the BBC's Sunday with Laura Kuenssberg, Mr Sunak was asked three times whether he would commit to lowering taxes before the next election, which is expected next year.

Mr Sunak - at his first conference as party leader - said as a Conservative, he wanted to cut taxes, but gave no detail on when he would do so.

The prime minister said he thought halving inflation by the end of this year, which is one of his five pledges for government, was the "best tax cut" he could deliver.

Inflation - the rate at which prices are rising - was 10.7% in the three-month period between October and December 2022, which means the government aims to reduce inflation to 5.3%.

In August, the inflation rate was 6.7%.

Curbing inflation, Mr Sunak said, was his biggest priority.

"Change may be difficult, but I believe the country wants change and I'm going to do things differently to bring about that change," he said.

The government has limited tools to reduce inflation. The Bank of England says raising interest rates, which it controls, is the best way to make sure inflation comes down.

On the eve of the conference, the boss of Iceland supermarkets, Richard Walker, announced he was quitting the Conservative Party and accused the Tories of being "out of touch".

But facing questions about discontent within his party over tax, green policies and the future of the HS2 rail line, Mr Sunak rejected claims the Tories were "drifting out of touch" with voters, as his party trails Labour in the polls.

The prime minister told Laura Kuenssberg that Mr Walker had talked about net zero and prioritising working people, adding: "Change may be uncomfortable for people. People may be critical of it, but I believe on doing the right thing for the country.

"I'm not going to shy away from that."

He declined to comment on speculation about the government potentially scrapping the Birmingham-to-Manchester leg of HS2.

Mr Sunak said his focus was on "long-term things that make people's lives better".

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