TORY leadership hopefuls’ fantasy tax cut pledges will not help the worse-off and will fail to boost growth, an expert has warned. 

Of the nine candidates in the leadership race, seven have already promised to cut taxes on businesses, people or both. 

Confirming their leadership bids today, former health secretaries Sajid Javid and Jeremy Hunt both pledged to reverse the planned corporation tax hike from 25 to 15 per cent, while Transport Secretary Grant Shapps said he would freeze the proposed increase. 

The nine Tory MPs who have so far announced their intention to run in the contest to replace departing Prime Minister Boris Johnson also include former chancellor Rishi Sunak — among the few not calling for tax cuts — his successor, Nadhim Zahawi, Attorney General Suella Braverman, former equalities minister Kemi Badenoch, backbencher Tom Tugendhat and Trade Minister Penny Mordaunt. 

Mr Hunt, whose disastrous handling of the NHS as health secretary saw junior doctors go on strike over unsafe contracts, said his plan for “smart” tax cuts would boost the economy. 

Mr Hunt said he would not reverse the hike to National Insurance, saying this is needed to fund social care. In contrast, Mr Javid has pledged to reverse the increase, as well as Mr Tugendhat, who said he would also reduce “crippling” fuel taxes.

The tax-cutting pledges have raised concerns that this could further increase inflation and make the poor worse off. 

Political economist and tax justice campaigner Richard Murphy said Tory leadership hopefuls are “playing a game of fantasy tax cuts,” warning that the public would pay a heavy price for this. 

He argues that tax cuts for businesses only increase revenue when the tax rate that is cut is very high, with the effect only being seen if the current rate stood at about 50 per cent. The current rate is just 19 per cent. 

“All these Tory hopefuls are offering are big bungs to business and their friends in the tax avoidance industry, but what they are definitely not doing is offering any prospect of new work or growth as a result,” he said, warning that corporation tax cuts “just promote cheating.”

“These cuts will not help the least well-off,” he continued, adding that all Tory Party hopefuls are offering to the British public is “higher inflation, low growth, cuts, despair and poverty.”