WORKERS are in line for a 2p tax cut to “incentivise work” — but not until next April.
PM Rishi Sunak and Chancellor Jeremy Hunt are still preparing for a reduction in income tax or national insurance before the next General Election.
Rishi Sunak and Jeremy Hunt are preparing for a reduction in income tax or national insurance before the next General Election
But due to inflation remaining “stickily high” it might not be announced until next March’s Budget — possibly just weeks before Britain goes to the polls.
A government source told the Telegraph: “No one should be in any doubt that we will go into the election having cut taxes and promising to do more.”
No10 is weighing up whether to go to the country at the same time as next May’s local elections and big mayoral tests in London and Birmingham.
Or they could wait until the summer or autumn in the hope the economy picks up more, giving them a better shot at beating Labour who have a double digit poll lead.
However, MPs worry that with inflation still soaring, most people will barely feel a tax cut in their wallets.
Tory MPs have told No10 that delaying them to the eve of polling day would also blunt their impact before voters have to choose their next government.
Ex-Cabinet Minister Sir John Redwood said yesterday: “Do it now. Go for growth.”
Insiders say a tax cut will be front and centre of the Tories push next year and hope Mr Hunt will be able to outline the plans in this autumn’s economic update.
A Government source said: “Cutting tax on working people is something the PM strongly believes in.
“He wants to incentivise work, as you can see from what the Department for Work and Pensions and the Treasury have been doing on getting people back to work.”
A Treasury spokesman said: “We don’t comment on tax policy outside fiscal events.”
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