Health Secretary Sajid Javid has joined public calls for reduced taxes
(Picture: REUTERS)Boris Johnson came under further pressure on Wednesday from his own Cabinet to cut taxes as he seeks to win over Tory rebels following this week’s damaging confidence vote on his premiership.
Following his 211-148 victory in Monday’s vote, the Prime Minister set out a longer-term commitment to cut taxes at a Cabinet meeting on Tuesday as part of a broader plan to draw a line under questions over his leadership after the partygate scandal.
This morning Health Secretary Sajid Javid joined public calls from Business Secretary Kwasi Kwarteng and Foreign Secretary Liz Truss for the Prime Minister to reduce taxes to help ease the cost of living crisis as energy bills and fuel prices soar.
“Look, I would like to see us do more on tax cuts,” Mr Javid told BBC Radio 4’s Today programme. “I am someone, just like every member of the Government and all my colleagues, who would like to see taxes as low as possible and I am pleased there have been targeted tax cuts already.”
Although Chancellor Rishi Sunak used his Spring Statement to announce plans to raise National Insurance thresholds next month — effectively a tax cut — he also raised National Insurance contributions by 1.25 per cent in April to pay for the NHS and social care, with corporate taxes also set to rise.
Despite pledging to slash income tax by 1p in the pound by 2024, the UK’s tax burden is at its highest level for 70 years.
While Mr Sunak is reported to be keen to offer tax incentives to business in his Budget this autumn, slashing personal taxes could fuel further inflation which is already at its highest level for 40 years and could rise further, placing household budgets under even more pressure.
With the war in Ukraine leading to a surge in oil prices, the RAC on Tuesday warned that the average cost of a litre of fuel could rise to £2 this summer.
The average price of a litre of petrol at UK forecourts reached a record 180.7p Tuesday, according to data firm Experian Catalist. That was an increase of 2.2p compared with the previous day. A similar price rise today would take the average cost of filling a typical family car with petrol above £100 for the first time.
Mr Javid acknowledged that the pandemic had led to “challenges to the public finances” but on taxes he reiterated: “I would like to see cuts where they are possible. I know this is something the Government is taking very seriously and I know it’s something the Chancellor will look at.”
Mr Kwarteng told the BBC Tuesday that he wanted to see “very radical” tax cuts as soon as possible.
Ms Truss, one of three Cabinet ministers who last year opposed the 1.25 per cent rise in National Insurance contributions, said the Government’s agenda had to include “getting taxes down and getting the economy going”.
Cutting taxes would be popular with free market Tories in Mr Johnson’s party who want him to rein in his big spending, high tax approach and get back to traditional Conservative values.
Sir Iain Duncan Smith, Tory MP for Chingford and Woodford Green, said: “The purpose of this Government should now be to reduce the overall tax burden to allow those who work hard for their families to keep more of the money they earn and give less to the Government. That is what real freedom means.”
And Steve Baker, MP for Wycombe, who voted against the Prime Minister on Monday and has previously called for him to resign, added: “We currently have the highest tax burden in 70 years. This cannot go on. Conservatives must stand up for the formula we have always believed in and recognise that you cannot tax your way to prosperity.”
Mr Johnson and Mr Sunak are due to make a major joint speech on the economy next week as the Prime Minister attempts to reboot his administration after months of uncertainty following the Met Police inquiry and Sue Gray investigation into parties at Downing Street and in Whitehall.
However, following the confidence vote, rebels are said to be considering other ways to force him out including a “strike” on key parliamentary votes and changing the rules governing Tory leadership challenges.
Wednesday Mr Javid insisted changing the rules which prevent MPs from forcing a second confidence vote in Mr Johnson inside a year would be “grossly unfair”.
He also rejected suggestions that “disloyal” ministers should be sacked by the Prime Minister as part of a reshuffle.
