Chancellor Rishi Sunak has issued a new sign of his determination to cut taxes ahead of the next general election, amid concerns from Tory lawmakers over the growing burden on taxpayers.
Mr Sunak has ordered Treasury officials to review options to reduce the tax burden, which is set to rise to its highest level for 70 years.
The Times reported that measures could include a 2p cut in the basic rate of income tax and a reduction in the rate of VAT.
Officials also had to consider whether it would be possible to eliminate the 45p higher rate of income tax and increase the limit on which inheritance tax is payable.
The aim would be to cut it before the next general election, which is currently due in 2024.
The PA news agency understands the work – which has been described as “very exploratory” – is still in its early stages, without guarantees that any proposed cuts can be delivered given the uncertainties surrounding public finances. Is.
This can be seen as an attempt by Mr Sunak to restore his reputation as a “low tax Tory” following the decision to increase national insurance – in defiance of a manifesto promise – to tackle the backlog in the NHS and reform for social care funding.
Many Conservative lawmakers became concerned after an analysis of the budget in October showed the tax burden was rising to its highest level since Clement Attlee’s Labor government 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 large sums of money to support the economy and now faces the task of rebuilding public finances. is falling
This has made her eclipse by Foreign Secretary Liz Truss a favorite in the eyes of some Tories to succeed Boris Johnson as party leader.
A Treasury spokesman said: “We continue to review the tax system. And as the Chancellor made clear in the budget, by the end of this Parliament we want taxes to be lower, not higher.
“We do not comment on speculation about specific tax changes.”
Credit: www.independent.co.uk /