Liz Truss is considering a “nuclear” option that could see VAT cut from 20% to 15%, according to reports.
A source told Sky News that Ms Truss “will consider options to help people, but it would not be right for her to announce her plans before she has been elected prime minister or seen all the facts”.
Estimates suggest such a VAT cut would save the average household more than £1,300 a year, while the Institute for Fiscal Studies said it would cost taxpayers £3.2bn a month, or £38bn for a year.
Rishi Sunak’s team criticised the plan as expensive and “incredibly regressive”.
A source close to Ms Truss’s discussions told The Sunday Telegraph: “They [the Treasury] have talked about the Gordon Brown approach that he took at the time (of the financial crisis), when it looked as…
