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Rishi Sunak warns he will curb benefits and government spending to help fund tax cuts

Prime minister suggests public spending cuts on cards to help with pre-election giveaway

Tara Cobham
Saturday 06 January 2024 23:52 GMT
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Rishi Sunak has warned he will curb benefits and government spending to help fund tax cuts.

In a new interview, the prime minister said his priority was cutting taxes, but that would result in “difficult decisions” having to be made on public spending, without going into specifics.

His comments came after he revealed earlier this week he was aiming for an election in the second half of this year, having ruled out going to the polls in 2025.

Rishi Sunak has said he will cut benefits and government spending to fund tax cuts
Rishi Sunak has said he will cut benefits and government spending to fund tax cuts (PA Wire)

The prime minister told The Sunday Telegraph: “When I say that I want to keep cutting taxes, that’s what we’re going to deliver. We’re going to do that responsibly. That requires difficult decisions on public spending. It requires difficult decisions to control welfare. Those, I believe, are the right things to do for our country.

“I want to control public spending, I want to control welfare, which we’re doing and because we’re doing that, and because we’re being disciplined with borrowing and our debt, we’re going to be in a position to cut taxes.

“I want to keep cutting people’s taxes. There’s no way we can do that unless we restrain the growth in the public sector and government spending.”

Sir Kier Starmer is currently on course to win power, commanding an 18-point lead
Sir Kier Starmer is currently on course to win power, commanding an 18-point lead (PA)

The Tories used last year’s autumn statement to unveil a two per cent cut to National Insurance in a bid to boost the party’s fortunes, which chancellor Jeremy Hunt said will save the average worker £450 a year. The cut came into effect from Saturday but changes to other taxes, including the freezing of tax thresholds under Mr Sunak as chancellor, mean the tax burden facing households is still rising.

The Resolution Foundation has said anybody earning under £26,000 will be worse off, with the tax cut benefiting those earning £50,000 a year the most. The Institute for Fiscal Studies (IFS) has said a worker earning the average salary of £35,000 would be £440 worse off by 2028 and overall, the tax burden is still on course to be the highest since the Second World War.

Mr Sunak is reportedly considering scrapping inheritance tax in the March Budget, as he scrambles to appeal to voters ahead of next year’s general election.

Opinion polls have for two years consistently given Labour a double-digit lead over the Conservatives, who have churned through three prime ministers in 18 months amid a stuttering economy and frequent scandals.

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