Chancellor Nadhim Zahawi plans to help businesses facing bankruptcy by implementing a multibillion-pound package of tax cuts. The Times reports Mr Zahawi said ministers could learn the “lesson from Covid” and bring in targeted reductions in VAT and business rates to aid the retail and hospitality sectors.
Mr Zahawi is believed to have discussed his plans with the favourite to win the Tory leadership contest, Liz Truss, and is in line for a senior job in her cabinet should she be victorious, although he is not expected to be chancellor after Monday's poll outcome. He said that failing to act could result in economic "scarring" and bankruptcies.
Mr Zahawi said Ms Truss would ensure that the Government acted to mitigate the effect of the energy price hike on families next month, as well as a further anticipated increase in January. He said: “My responsibility is to make sure I share with her where I think the pressure is on families, on households and on business, then give her the options as to what we can do.
