David Davis, a Tory MP and former Brexit secretary, dismissed the argument that tax cuts would have to wait until inflation began to fall. Mr Davis told The Telegraph: “There is this strange new argument that taxation is somehow a way to beat inflation. The high tax does not beat inflation – it makes its impact more miserable for the average family. “Second, we will face stagnation, not inflation. The best way to deal with this is to increase growth, which is another argument for lower taxes. “Tax cuts must come before inflation rises.” The prime minister has repeatedly spoken of his determination to cut taxes last week, calling for the support of Tory lawmakers ahead of a vote of confidence in his leadership. In a letter to all Conservative MPs before the vote, Mr Johnson said “you can not tax your way to growth” and “of course we will devote all our energy to reducing… the tax bill”. He made similar remarks in a face-to-face speech to the Tory Committee in 1922. Johnson won the no-confidence vote of the Tory MPs by 211 votes to 148. The prime minister then used a rebuff speech on Thursday to describe the tax burden – which is expected to reach its highest level in 70 years – as a “deviation”, saying he wanted a reduction “sooner” than “later”. However, Mr Johnson declined to name a new tax cut he was considering.
“Won’t the big tax increase make things worse?”
Sir John Redwood, a Tory MP and former Welsh secretary, has argued in the House of Commons that a tax cut could help those whose incomes have been slashed by rising prices. Sir John asked: “Why is the UK government the only advanced government in the country to make a big increase in the tax burden and the very next at a time when there is a much-needed monetary tightening to control inflation and a huge blow to the net Income from Inflation itself? Will not a big tax increase make things worse and slow down the economy too much? “ Separately, Anthony Mangnall, Tories MP for Totnes, warned that low wages are driving fishermen out of business. He said: “Right now, fishermen in Brixham are deciding to leave their boats because of the average consumption of 32 32 a day for all their work. “If we do not intervene now, our fishermen across the UK will be lying down.” No new tax decisions are expected until the Budget this Autumn. Government ministers note that the increase in National Insurance limits will begin next month, in a policy that will reduce the tax bills for millions of households.
UK reform commitment to tax cuts
Meanwhile, Reform UK, led by Richard Thais and originally founded as the Brexit Party, announced a stimulus plan on Monday that it said would provide 74 74 billion in financial stimulus. Accusing Mr Sunak of a “Corbyn solution” and “classic socialist measures”, Reform pledged to cut income tax for Britons earning less than 20 20,000 a year, abolish VAT on energy bills, and reduce “green” taxes. »Environmental taxes and reduce the tax on fuel by 20 p. per liter. While the Brexit Party withdrew with 317 seats won by the Tories in the 2019 general election, Reform is also running in the by-elections of Wakefield and Tiverton and Honiton next week.
