Rishi Sunak: Tory manifesto will include tax cuts

Mr Sunak said his party’s policies would be paid for by clamping down on tax avoidance, which he said would raise £6bn, as well as reforming the welfare system and getting more people into work.

However, the independent Institute for Fiscal Studies has said delivering the £12bn savings promised by the Tories by 2030 through reforming welfare “looks difficult to the extreme”.

The think-tank has also warned whoever wins the next election will have to cut the scope of what the state provides or increase taxes to maintain levels of departmental spending.

Asked if he would be honest with people that his plans would also mean significant spending cuts for many government departments, the prime minister said: “No, that’s not what our plans show.”

He said day-to-day spending on public services under a future Tory government would continue to increase ahead of inflation.

But he added: “Of course, all governments prioritise within that.”

Mr Sunak said he also wanted to focus on productivity in the public sector, which he said had fallen “considerably since Covid”.

“If we recover just to pre-Covid levels of productivity, so nothing heroic, just as productive as we were before the pandemic hit… that productivity gain is worth £20bn,” he said.

He added that this would make it possible to cut taxes.