Labour and Tories fight over economy as Hunt and Reeves drop tax cut hints

The Tories and Labour will fight over the economy as Sir Keir Starmer centres Saturday’s campaign on the cost-of-living crisis while the Conservatives hint at tax breaks for high earners.

The Chancellor signalled the party would seek to end the impact of tapering of personal allowances on larger incomes, while his opposite number vowed to deliver financial stability with a Thatcher-style commitment to “sound money”.

Workers lose £1 of their tax-free personal allowance for every £2 that their earnings go above £100,000, and anyone on more than £125,140 gets no allowance.

In an apparent bid to draw dividing lines with Labour, used an interview with the Telegraph newspaper to dangle the prospect of a change to the current system.