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Rishi Sunak is under pressure to reduce her tax burden from its current record levels as Liz Truss’ allies prepare to push for policies she supports.
The prime minister should “increase the pie” instead of raising taxes to improve public services, MPs warn.
Prime Minister Jeremy Hunt plans to resist calls for new tax cuts when he announces the budget in mid-March. Me I understand. His officials believe the impact of rising borrowing costs means it’s still too early to start easing the tax burden.
But one senior lawmaker involved in the new Conservative Growth Group said, “The only way to transform the country is not by raising tax rates, but by creating jobs with better wages and raising tax revenues.” We have to get out of the current trap of cutting ever more out of the pie.Instead, we need to make more of the pie.”
Hunt’s allies have suggested that the tax cut he wants to see in the budget is a five-pence cut to the fuel tax introduced last year when Sunak was prime minister. This is one of the few tax cuts that curbs inflation by directly lowering the cost of some goods, rather than fueling inflation by pumping more money into the economy.
Several Conservative MPs have publicly called on the prime minister and the prime minister to cut taxes instead of just focusing on balancing the budget. Former Cabinet Minister John Redwood said Friday: “The UK cannot afford high taxes. Tax cuts are the way out of recession.”
Simon Clarke, one of Mr Truss’s closest allies, warned last night that he would not regain support among young people unless Tory Mr Sunak introduced policies to cut housing and childcare costs. . He told his BBC: If we don’t fix this, the Conservative Party will die… I don’t think it should be surprising that people don’t turn to the party of capital because capitalism isn’t working for them.
Treasury insiders say the March 15 budget will contain many ideas to boost growth, following a statement in the fall outlining how the government will cut borrowing in the medium term. increase. But they fear that an immediate tax cut would risk another market crash that has led to a fall in the value of the pound and higher interest rates, similar to the response to Kwasi Kwarten’s ‘mini-budget’. I am afraid.