Rishi Sunak revealed last night that he plans to cut taxes ahead of the next election.
In an interview with Spectator magazine, the Prime Minister dropped a heavy hint that the government will cut taxes again in the budget expected in March.
Mr Sunak said his priority is to 'control spending and prosperity so we can cut taxes'. “We are in a position to be able to do all that because we have brought inflation down,” he said. 'The economy has turned around and that means that there could be an acceleration in the way we deal with taxes.'
Chancellor Jeremy Hunt cut National Insurance rates by 2p in last month's autumn statement on the economy, delivering the biggest personal tax cut in recent times. Critics have pointed out that Britain is still heading for a record tax burden.
Rishi Sunak revealed last night that he plans to cut taxes ahead of the next election
Chancellor Jeremy Hunt cut national insurance rates by 2p in last month's autumn statement on the economy
Mr Sunak said: 'I have always said I am a Thatcherite in the truest sense of the word. As Nigel Lawson and Margaret Thatcher said: reduce inflation, reduce taxes. That's what we did. We delivered more tax cuts in one budget event than at any time since the 1980s.”
Drawing a line with Labour, he added: 'The choice at the next election is between me and Keir Starmer. A Labor Party that wants to borrow £28 billion a year will not control welfare and government spending. A Conservative Party is going to do those things – and cut your taxes instead.”
A report found that despite falling inflation, families still feel under pressure.
A study by think tank Resolution Foundation shows that even as inflation has fallen rapidly, rising housing costs are exacerbating cost-of-living challenges.
The survey of more than 8,000 adults found that 38 percent reported that their financial situation had worsened between July and October, more than double those (15 percent) who saw improvements.
And 22 percent said they struggled to afford enough food.
It comes after figures yesterday showed a surprise drop in GDP of 0.3 per cent in October, setting the tone for a gloomy end to the year as Wall Street giants Goldman Sachs and JP Morgan cut their UK growth forecasts. One expert said this puts the Prime Minister's promise to grow the economy at risk. Today, the Bank of England is widely expected to leave interest rates unchanged at its latest meeting.
But markets are increasingly convinced the cuts will happen next year, despite Threadneedle Street officials trying to temper those expectations. The Bank has raised interest rates to 5.25 percent in recent years, bringing consumer price inflation down from 11.1 percent last year to 4.6 percent now.