Tax cuts are a popular vote-winner the world over. The current hopefuls for the leadership of the U.K. Conservative Party – and the next British prime minister – have certainly taken this to heart since Boris Johnson’s resignation announcement on July 7.

As a major economic and diplomatic leader, the U.K.’s next prime minister will set the agenda not only for the country, but for its global relationships and its major industries such as financial services. Tax cuts could be a key factor in helping people survive the current uphill battle against inflation and the rapidly rising cost of living. They could also be used to encourage economic growth and boost lagging U.K. productivity.

With the July 21 deadline for the party to decide on the final two candidates looming, all are pushing tax cuts as a vote-winner – it certainly worked for Margaret Thatcher in the late 1970s. Today’s hopefuls differ greatly in terms of what to cut, by how much and how soon.

As The Open University’s Alan Shipman explains, however, tax cut talk may win votes, but it is an economic gamble.

Pauline McCallion

Senior Business Editor, The Conversation UK

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