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Truss Mulls VAT Cut, Tax Threshold Hike to Ease UK Crisis

  • Premiership front-runner considers all options as bills soar
  • Rival Sunak’s team warns VAT reduction would be regressive
Liz Truss

Liz Truss

Photographer: Anthony Devlin/Bloomberg
Updated on

Liz Truss faced fresh criticism from UK premiership rival Rishi Sunak over her plans to tackle the cost-of-living crisis, amid reports she is mulling a move to slash the VAT sales tax by as much as 5 percentage points.

Truss, the favorite to be announced as prime minister on Sept. 5, has refused to set out details of support for families and businesses who face soaring energy costs -- but her office did not dispute on Sunday that cutting VAT to 15% was among the options being considered.