Tory leadership candidate Rishi Sunak has announced plans to scrap VAT on domestic energy bills, saying the move would save average households £160 annually.
After repeatedly opposing tax cuts, Sunak described it as "targeted, temporary and timely", but critics accused him of making a screeching U-turn.
Kwasi Kwarteng said Sunak pivoted due to pressure in the election contest and questioned his change of mind.
He told Sky News he was "delighted to see that Rishi Sunak has now come late to the party and decided that tax cuts are a good idea and they’re not a fairytale. And that being a grownup … does mean that you can have tax cuts."
The Labour Party has been pushing for a cut in VAT on energy bills for months, but Sunak claimed earlier this year that it would disproportionately benefit the wealthy.
The Tories voted down a Labour motion to force a cut in January, with Boris Johnson calling the measure a "blunt instrument".
According to Sunak, tackling inflation and providing people with the support they need is crucial to lowering living costs.
"That’s why, with the price cap expected to rise above £3,000 in October, I will move immediately to scrap VAT on everyone’s domestic energy bills for the next year, saving the average household £160."
Tax cuts like this will not only provide support to people but also bear down on price pressures, Sunak added.
"As Chancellor I knocked £400 off everyone’s energy bill and provided support of £1,200 for the most vulnerable households. This additional VAT cut will help deal with the current emergency."
Sunak was accused by Shadow Treasury Minister Pat McFadden of acting as "his own rebuttal unit", while Liberal Democrat Treasury spokesperson Sarah Olney called it another "Sunak Swindle."