Left: Labour Party leader Starmer visits a primary school in Middlesbrough on the 11th. /AP; Right: British Prime Minister Sunak (third from right) and his wife took a photo with supporters on the 11th. /Reuters

The UK will hold an early general election on July 4. Prime Minister Rishi Sunak, leader of the ruling Conservative Party, released his campaign manifesto on July 11, with the core content including promises of tax cuts, deportation of illegal immigrants, and subsidies for first-time homebuyers. The opposition Labour Party described the campaign manifesto as “a desperate list without financial support”. If the Conservative Party governs for another five years, Britain will only become more chaotic, and the British people will pay the price. British media said that the Conservative Party lags behind the Labour Party by more than 20 percentage points in many polls.

Sunak suddenly announced on May 22 that the new British general election will be held on July 4, shocking everyone. Faced with a dismal approval rating, Sunak said on the 11th that he did not ignore the fact that people were disappointed with the Conservative Party and himself. He promised that if re-elected, he would further promote economic recovery and play the “tax cut card”. “Unlike the Labour Party, we believe in a prudent monetary policy.”

According to Sunak’s plan, by 2029-2030, the total tax cuts in the UK will reach 17.2 billion pounds per year. The funding sources include cutting welfare spending by 12 billion pounds per year and saving 6 billion pounds per year by combating tax avoidance and tax evasion. He announced that the national insurance contribution amount for employees will be reduced for the third time this year, which is expected to save an average of 1,350 pounds for each ordinary worker.

Criticized for copying Truss’s policy

The Labour Party called Sunak’s tax cut promise “a desperate list with no financial support” and said it was “copying (former Prime Minister) Truss’s (economic policy)”. After Truss came to power in 2022, he announced a series of tax cuts, which triggered turmoil in the British financial market and caused the pound to fall to a low of $1.03. Sunak then denounced Truss’s tax cut policy as having no practical feasibility. In October 2022, Truss, who lasted only 45 days in office, stepped down in disgrace, becoming the “shortest-lived” prime minister in British history.

Labour Shadow Chancellor Reeves pointed out that if Sunak does as he said, there could be a fiscal deficit of up to 71 billion pounds within five years, mortgage rates are expected to rise sharply, and the average mortgage holder will pay 4,800 pounds more within five years.

In addition to the opposition taking the opportunity to attack Sunak, Conservative colleagues and several think tanks are also not optimistic about his plan. British media revealed that many Conservative MPs are desperate. An anonymous Conservative MP believes that Sunak’s tax cut policy will not change the current situation of lagging behind in support.

The Resolution Foundation, an independent think tank in the UK, said that funding for the tax cuts comes on the condition of cutting social security, including treatment costs for long-term patients that could be as high as 40%, “all of which makes people question whether this tax and spending plan passes the test of rationality.”

Johnson, director of the Institute for Fiscal Studies (IFS), said the source of funds for tax cuts was “uncertain and unspecific.” He pointed out that whoever wins the election will face an economic situation of high debt, high interest rates and low growth, which is the most severe challenge since the 1950s.

UK economic growth stagnates

Both organizations believe that Sunak’s tax cuts mainly benefit the rich. Several polls show that many voters want the new government to increase investment in public services rather than cut taxes because they cannot feel the benefits of tax cuts.

The UK National Statistics Office announced on the 12th that the UK’s GDP in April recorded zero growth on a monthly basis, the worst since December 2023; the unemployment rate in April broke expectations and increased to 4.4%, a record high in nearly three years. Labour Party Shadow Chancellor Reeves said that Sunak claimed that the UK had emerged from the predicament, but statistics showed that economic growth had stagnated.

In addition to tax cuts, Sunak proposed a number of policies to deal with illegal immigration, increase NHS staff, and help people buy houses, but most of them are repetitions of previous policies, and public opinion believes that they are not very attractive to voters.

Sunak was under great criticism when he released the manifesto. On June 6, the 80th anniversary of the D-Day landings was held at Omaha Beach in Normandy, France, with leaders from many countries, including US President Biden and German Chancellor Scholz, attending the event. But Sunak left early to attend the recording of an interview with the British Independent Television (ITV). Labour Party leader Starmer stayed to attend the ceremony.

Sunak’s move sparked strong criticism. British Labour MP Ashworth said: “Sunak chose to prioritize his own vain image on TV rather than our veterans, which shows what is most important to him.”

(The Guardian/Reuters/BBC)