Ashishink launched a fresh attack on Liz Truss’ plans for tax cuts ahead of the pair’s next debate in their bid to become prime minister.
The former chancellor said his foreign secretary rival in the Tory leadership race would further raise interest rates, increase mortgage payments with her plans.
His warning came as the Bank of England was forecast to raise interest rates on Thursday to the highest level in nearly three decades, from 1.25% to 1.75%.
With the Bank of England announcement scheduled for midday, experts have warned inflation could hit 15%, adding to an already painful cost crisis with rising prices.
Meanwhile, the pair are also due to face off in a quick debate on Sky News at 8pm on Thursday.
Mr Sink has faced attacks from Ms Truss for overseeing rising taxes while in No 11 during the pandemic, as she promises another radical plan to cut them.
He has insisted that he wants to see tax cuts, but argues that inflation must be brought under control before making major changes.
The former chancellor stressed there were “significant differences” between their plans “because timing is everything”.
“If we rush through premature tax cuts before inflation is under control, we are only giving with one hand and taking away with the other,” he said in a statement.
“It will drive up inflation and raise interest rates, increase people’s mortgage payments. And it will mean that every pound people put back in their pockets is nothing more than paying less when prices rise.
“A policy prospectus devoid of hard choices may feel warm in the short term, but it will be cold comfort when it lets Labor into No 10 and sends the Conservatives into the opposition wilderness.”
Ms Truss responded by saying “we cannot tax our way to growth” and insisted her plans would not increase prices further.
“My economic plan will move our economy forward by reforming the supply side, getting EU regulation off our statute books, and cutting taxes,” he said.
“Delivering bold supply-side reforms is the way we will tackle inflation in the long term and deliver sustainable growth. Modest tax cuts – including ending the potentially disastrous corporation tax hikes that have just has not come into effect – there are no inflations.”
Ms Truss’ campaign received another high-profile Tory endorsement as former leadership hopeful Sajid Javid threw his weight behind the foreign secretary.
Mr Javid, whose resignation as health secretary came just minutes before Mr Sink resigned as chancellor in a move that forced Boris Johnson to resign, warned that “tax cuts are now essential”. “Because they supported Ms Truss’s plans.
In an article for The Times, Mr Javid said the nation was “at risk of moving towards a big state, high tax, low growth, social democratic model that risks us becoming a middle-income economy by the 2030s”.
Thursday’s debate follows a head-to-head last week, held on Talk TV on July 26, which was halted after presenter Kate McCain fainted off camera while Ms Truss was speaking.
Ms McCann later said she was “feeling a bit embarrassed, a bit hurt, but glad to be back and all right”.
On Wednesday, Ms Truss was buoyed by two polls giving her a huge lead over Mr Sink as the pair contested a hustings in Cardiff.
He led Mr Sink by 34 percentage points in a YouGov poll of party members, before a Conservative Home website poll released on Wednesday put him ahead by 32 points.
In a televised program he accused the “media” of “misinterpreting” the £8.8 billion policy pledge to cut the public sector wage bill, Mr Sink said of the U-turn. welcome
She renewed her attacks on Scottish First Minister Nicola Sturgeon after saying she would ignore “attention seekers” and launched a fresh attack on Ms Sturgeon’s Welsh counterpart.
Ms Truss described Welsh First Minister Mark Drakeford as a “low-energy version” of former Labor leader Jeremy Corbyn and said his successor, Sir Keir Starmer, was a “plastic patriot”.