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A Tory MP has warned Rishi Sunak that the next budget must be used to cut taxes in order to grow the economy after official figures showed record borrowing by Britain.
The Prime Minister and Prime Minister Jeremy Hunt have argued to MPs that the government’s finances will not allow tax cuts, especially in the wake of Liz Truss’ “mini-budget” last year.
Figures released this week show the government borrowed £27.4bn in December, more than double the year before and £10bn more than expected.
A Treasury insider has come to warn that the government’s energy bill support package and higher debt rates will result in deficits “far higher than expected”, so a deep tax cut is out of the question.
But veteran Conservative John Redwood, a prominent supporter of Liz Truss’ leadership campaign last year, argued that the Treasury Department’s finances make the need for tax cuts even greater.
“The way to reduce the deficit is to grow the economy,” he said. “To say the budget deficit is too high to cut taxes is to stop one of the best ways to grow and borrow less.
“December’s poor UK borrowing numbers are due to high inflation on inflation-linked government bonds and temporary energy subsidies. Those two items should be down significantly this year.”
Last week, in a question-and-answer session in Morecambe, Mr. Sunak risked angering Backventure when he suggested that those in his party calling for tax cuts were “idiots.”
A Tory MP who joined the new Conservative Growth Group argued that tax cuts and new tax cuts should be part of the Treasury Department’s thinking to boost the economy in the next budget.
“We need to create jobs and raise wages. This is the best way to increase tax revenue without increasing tax rates. We need to get out of this trap of increasing taxes to pay for public services.” , we need to grow the economy instead,” said one parliamentarian. Me.
Hunt is expected to keep at current levels the taxes that backventures hate the most, including income tax, national insurance premiums, corporate tax and tobacco tax, stamp tax and windfall tax on energy companies.
Right-wing pressure groups such as the Tax Reform Council attacked the government for imposing a surprise tax on oil and gas companies, citing Harbor Energy, which decided to cut jobs in the UK as a result of the tax.
In response to the news, Conservative MP Craig McKinley warned that the windfall tax is holding back investment in the UK. “Too much will stop investment. As I predicted, we see it in the unexpected taxation of 75% excess oil and gas. We are doing this so wrong.”