Tax plan could decide who leads the Conservative Party after Boris Johnson | Political news
Tax policy is shaping up to be a decisive issue among Tory leadership hopefuls.
Former health secretaries Jeremy Hunt and Sajid Javid, who both announced their candidacy on Saturday, said they would cut corporate taxes.
Both men said they would drop the current government’s plan to raise the tax from 19% to 25% and reduce it to 15% instead.
Speaking to the Telegraph, Mr Hunt said he would:
• Cut the corporate tax rate in his first fall budget
• Eliminate five-year business fees for communities most in need
• Keep national insurance growth unchanged as “NHS needs money”
“I would love to see income tax cut, but it has to be done in a sustainable way,” he said.
“It can’t be an election bribe and it depends on the growth rate. What you need is an income tax cut for life, not for Christmas.
“That means start by saying we’re going to get the economy going, then you’ll get your place.”
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In the same newspaper, Mr Javid promised to:
• Review the increase in national insurance, in effect during his time as health secretary to fund NHS and social care.
• Cut corporate tax by 1 percentage point per year until it reaches 15%
• Bring the 1p income tax cut plan to next year
• Temporary “substantial” fuel tax relief
Mr. Javid said: “The government cannot prevent the impact of high prices on everyone. You cannot mitigate everything.
“The better way out of this, the better way is to drive growth.
“I have always believed that free markets, low taxes, and light regulation are necessary conditions for growth.”
Earlier, Prime Minister Nadhim Zahawi, who is also running for the top position, pledged tax breaks for individuals, families and businesses.
Others have stated they want to lead the party including Transport Minister Grant Shapps, former prime minister Rishi Sunak, Attorney General Suella Braverman, former minister Kemi Badenoch and Tory senior Tom Tugendhat.
Mr Sunak, who resigned as prime minister under Boris Johnson last week, is seen by many as a favorite, but some say his policies while prime minister will limit his appeal. in the leadership race.
Former minister Steve Baker, who is backing Ms Braverman’s campaign, told Sky News: “Because of his record as prime minister, he now has to double down on the high-tax position he took.
“The big question is whether taxing at this level will do more harm than good and I fear that will happen.
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“So even though I admire Rishi a lot and he usually says all the right things, now he’s plunged into a very difficult position which I think is quite harmful.”
But Sunak supporter, Sir Bob Neill, said of the former prime minister: “He’s the one to cut taxes and so am I.
“But you have to cut taxes responsibly because otherwise you’re going to have to cut public spending really big – maybe more than we can bear at the moment – or borrow more and more, and that’s really just pushing the tax burden onto the next generation.”
