By promising to eliminate the VAT on energy bills if prices continue to rise, Rishi Sunak has not made a U-turn, according to his supporters.
The plan, according to the ex-chancellor, would assist families with living expenses even though he has not yet pledged any tax reductions during the competition.
The team of rival Liz Truss called the move desperate and accused him of making a "screeching U-turn." Mr. Sunak opposed a Labour proposal to eliminate the 5 percent VAT on energy bills in January.
Liz Truss and Rishi Sunak have very different ideas about how to address the cost of living crisis, and their contest to become the next Conservative leader and prime minister has devolved into a bitter tax debate.
With voting for the next prime minister beginning next week, Mr. Sunak, who is trailing in the polls of Conservative members, has changed his strategy with the announcement of the VAT.
If the typical household's bill cap is raised to more than £3,000, the 5% rate on household energy will be eliminated for a year starting in October. The "temporary and targeted" tax cut, according to Mr. Sunak, will save typical households £160 annually, ensure that people receive "the support they need," and "bear down on price pressures."