The Conservative Party have decided to elect a new leader after Boris Johnson’s tenure as Prime Minister has come to an end.

But with the state of the economy in flux, the candidates need to be more careful than ever to emphasise their financial offerings to voters.

Here’s what each contender has said they would implement, and what that could mean for your money.

Rishi Sunak

The now former Chancellor, Rishi Sunak, was catapulted into prominence over his handling of the economy during the coronavirus pandemic.

From Eat Out to Help Out to the furlough scheme, Sunak was credited with staving off the worst effects of the lockdowns and fall out from the pandemic.

But the MP for Richmond in North Yorkshire has been widely criticised for his involvement as Chancellor in the subsequent economic issues triggered by the pandemic such as widespread inflation, soaring energy bills and raising taxes to pay for prior spending.

Sunak has pledged to cut the basic rate of income tax from 20% to 16%, but only by the end of the next Parliament – still seven years away. This would represent the biggest cut to personal taxes in around 30 years, were it to come to pass, and would save someone on an average salary of £32,000 around £777 a year.

However, if this level is matched in pensions tax relief, it would be a significant cut to the amount of tax relief anyone saving into a pension would get.

He has also committed to cutting that rate to 19% in 2024, but this was already announced before the leadership contest began.

Sunak has also promised to end VAT on energy bills should average prices rise above £3,000 per year, but this was only offered after initially declining to offer the cut. This would save the average household around £160 a year.

The former Chancellor has also promised to cut business rates in 2023. Beyond this however, he has been relatively quiet on financial policies, other than to criticise his opponent’s stances.

Liz Truss

The current frontrunner candidate Liz Truss has been vocal on her desire for the Bank of England base rate to move to a higher level. If she is made Prime Minister, she would couple this with significant tax cuts.

Tax cuts are the centrepiece of Truss’s offering and she has said she intends to “start cutting taxes from day one.” Her proposals add up to some £30 billion of cuts to taxes.

This includes scrapping the 1.25% National Insurance hike, and the 6% corporation tax hike which is due to be implemented next year.

The current Foreign Secretary has also pledged to scrap green levies on energy bills for two years to help households struggling to pay as prices soar.

Truss has also said she would include inheritance tax in a wider review of the tax system – looking at whether it is fit for purpose.

Truss says she intends to pay for the tax cuts by renegotiating the way the Covid-accrued debt is paid, making it a longer-term debt more similar to the way the Government paid back its debts after the Second World War.

While the contest is ongoing and more pledges are no doubt coming through the pipeline, readers must remember that these policy announcements are largely designed to appeal to the Conservative Party membership.

With the Bank of England predicting 13% inflation by the end of the year, whoever takes over at No.10 will no doubt have to adapt to the situation as it develops.