Sunak

Another day, another big policy pledge from the Tories - and this time it's a pitch for the grey vote. Rishi Sunak is pledging to cut tax for pensioners. A Conservative government would increase the personal allowance for pensioners in line with the Triple Lock by introducing a new age-related allowance. It is being billed as the 'Triple Lock Plus' whereby both the state pension and their tax-free allowance rise in line with the highest of earnings, wages or 2.5 per cent. As things stand, tax thresholds are being frozen for three years - which would not only drag five million more into higher tax bands but mean the basic state pension would, for the first time, be subject to income tax as that threshold stays at £12,570.

And then there were two. Rishi Sunak and Liz Truss now go to the membership. There’s much talk today about how brutal this contest will be. Penny Mordaunt’s supporters were arguing this morning that people should vote for her to avoid pitting these two against each other. But that would be false comfort. The argument between Liz Truss and Rishi Sunak is one that the Tory party needs to have. Fiscal responsibility has been the Tories’ anchor for years On one side stands Sunak, who I have known for many years. He cleaves to the old Thatcherite position that the first thing to do is to get inflation under control. He believes that you don’t get something for nothing: you can’t cut taxes unless you are controlling public spending.

At some point, Rishi Sunak is going to need to pick a lane. There is only so long that the Chancellor can claim to believe that excessive borrowing is immoral while borrowing to such excess. His trick yesterday was to make all the right noises about restraint while unrolling a £500 million ‘plan for jobs’. Take away his earnest delivery and it’s still not clear whether he’s the boozer at the bar telling the world about the dangers of alcoholism, or the sensible friend ordering the taxi home. Let’s be fair. Sunak has had to deal with exceptional circumstances in the last 18 months, and is taking steps to cease the unprecedented spending spurge.

Rishi Sunak didn’t give too much away tonight when he spoke in the 'ThinkTent' at Conservative Party Conference. The Chancellor is known for being cautious with his words, and has been increasingly tight-lipped in the weeks leading up to his October Budget. But his presence at the fringe event was telling in itself. Sunak was only billed for one public fringe event this year, co-hosted by the Institute of Economic Affairs and Taxpayers’ Alliance. Their ‘ThinkTent’ boasts some of the most free-market, libertarian events you’ll find at conference: both organisations are strong advocates for a low-tax, smaller state. So, not necessarily an obvious place to find the Chancellor who has overseen record peacetime spending over the past 18 months.