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Daily Mirror
Daily Mirror
Politics
Sophie Huskisson

Rishi Sunak slaps down top Tory's claim 2p could be cut from income tax

No10 has slapped down a claim from one of Rishi Sunak's Cabinet ministers that getting people back to work could lead to a 2p cut in income tax.

Work and Pensions Secretary Mel Stride said if the 650,000 people who left work over the pandemic returned, the economy would increase enough to allow for the tax cuts.

But No10 refused to stand by the claim today - instead repeatedly saying tax issues were a matter for Chancellor Jeremy Hunt.

Asked whether the PM agrees with Mr Stride, Mr Sunak's deputy spokesman said: "He agrees with the Secretary of State in their shared priority to get more people back into the workplace... but on the specifics of a future tax policy that is always a matter for the Chancellor."

Work and Pensions Secretary Mel Stride said if the 650,000 people who left work over the pandemic returned, the economy would increase enough to allow for the tax cuts (AFP via Getty Images)

Pressed on whether Mr Stride's comments should be disregarded, he added: "I think you accept it's a long established process that taxation matters are included in the Budget and are a matter for the Chancellor.

"The Prime Minister has been asked about such issues in the past, and he's said that when he was Chancellor, he always preferred if those issues were left to him and that would be the position now."

The spokesman said the government was "looking at all of the different options" to encourage people back into the workplace.

"It remains our priority to grow the economy and that would be an important factor in that," he added.

"You've seen the changes that the Chancellor has already set out to try and encourage people to do so, not least the lifetime pension allowance changes and the additional support in job centres and childcare changes that will come into force over the coming years so it remains a government priority to try and encourage people back into the workplace."

Appearing at an event in Westminster earlier this week, Mr Stride said: "The increase in economic inactivity due to the pandemic was about 650,000 people.

"Now if we can get all of those back into work, it will increase the size of the economy by about 0.2 per cent, which will reduce the borrowing requirement by about £11billion, which will be enough to take 2p off the basic rate of tax.

"What I'm in the business of doing is getting people back into work because work is very good for people, but also delivering the Chancellor with the greatest possible flexibility when it comes to setting out his stall this autumn and in the spring that is to follow."

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