Sunak, once seen as the favorite to replace Boris Johnson when he helped steer the economy through the ravages of the COVID-19 pandemic, has struggled against his rival, Foreign Secretary Liz Truss, who has pledged immediate tax cuts. Sunak said he remained focused on tackling inflation, but once that was achieved he would follow an already announced plan to remove 1p from income tax in 2024 and then remove another 3p by the end of the next parliament, likely around 2029 . Sign up now for FREE unlimited access to Reuters.com Register The two pledges will raise income tax from 20 p.m. at 4 p.m. Sunak said the plan would mark the biggest income tax cut since Margaret Thatcher. “It’s a radical vision, but it’s also realistic,” he said in a statement late Sunday, a day before Conservative Party members are due to start receiving their ballots to vote for the party’s new leader. Sunak told BBC radio on Monday that he would finance the tax cut by growing the economy and being disciplined with public spending. Britain’s hunt for a new prime minister began on July 7 when Johnson was forced to announce his resignation after months of scandal. Conservative lawmakers have narrowed a field of candidates down to Truss and Sunak, with party members expected to announce the decision on September 5. With inflation soaring to a 40-year high of 9.4% and growth lagging, the economy dominated the early stages of the contest, with Sunak arguing that Truss’ plan to reverse a rise in social security contributions and cancel a planned increase in corporate tax would fuel inflation further. “I don’t think it would be wise to go on an excessive borrowing spree at a time when inflation and interest rates are already on the rise,” Sunak said. Sunak said any cut in the income tax rate would cost about 6 billion pounds ($7.3 billion) a year, an amount he said would still allow Britain’s debt-to-GDP ratio to fall if the economy grows as expected. official forecasts. Truss argued that tax cuts are needed now to give the economy a chance. A recent YouGov poll showed Truss with a 24-point lead over Sunak among Conservative Party members. ($1 = 0.8220 pounds) Sign up now for FREE unlimited access to Reuters.com Register Reporting by Kate Holton and Kylie MacLellan. Edited by Andrew Cawthorne Our Standards: The Thomson Reuters Trust Principles.