Rishi Sunak calls for blueprint for tax cuts before next election
The Chancellor has ordered Treasury officials to draw up options to reduce the tax burden.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Chancellor Rishi Sunak has issued a fresh signal of his determination to cut taxes ahead of the next general election amid concern among Tory MPs at the rising burden on the taxpayer.
Mr Sunak has ordered Treasury officials to review options for reducing the tax burden which is set to rise to its highest level for 70 years.
The Times reported that the measures could include a 2p cut in the basic rate of income tax and slashing the rate of VAT.
Officials were also thought to be considering whether it would be possible to scrap the 45p higher rate of income tax and to raise the threshold at which inheritance tax becomes payable.
By the end of this parliament we want taxes to be going down, not up
The aim would be to deliver cuts ahead of the next general election, currently due in 2024.
The PA news agency understands the work – described as “very explorative” – is still in the early stages, with no guarantees any of the proposed cuts can be delivered given the uncertainties surrounding the public finances.
It is likely to to be seen as an attempt by Mr Sunak to restore his reputation as a “low-tax Tory” following the decision to hike national insurance – in breach of a manifesto promise – to deal with the backlog in the NHS and reform social care funding.
Many Conservative MPs were alarmed after analysis of the Budget in October showed the tax burden was on course to rise to its highest level since the Labour government of Clement Attlee in the early 1950s.
Mr Sunak entered the Treasury with a reputation as a Thatcherite, small-state Conservative, but the pandemic meant he had to pay out huge sums to support the economy and is now faced with the task of rebuilding the public finances.
It has led to his eclipse by Foreign Secretary Liz Truss in the eyes of some Tories as the favourite to succeed Boris Johnson as party leader.
A Treasury spokesman said: “We keep the tax system under constant review. And as the Chancellor made clear at the Budget, by the end of this parliament we want taxes to be going down, not up.
“We do not comment on speculation about specific tax changes.”