With senior Conservatives pressuring the prime minister for tax cuts in the autumn, the government has been examining whether significant cuts are possible given grim news on persistent inflation.
Mr Sunak wants a two pence cut to the basic rate of income tax or an equivalent reduction in national insurance, it has been reported. The PM is said to be keen to go into the election expected in 2024 promising to go further on tax cuts – having promised to do so in his leadership campaign.
The Sunday Telegraph quoted a senior government source: “Cutting tax on working people is something [Mr Sunak] strongly believes in. He wants to incentivise work.” Another source said: “No one should be in any doubt that we will go into the election having cut taxes and promising to do more.”
However, a No 10 source told The Independent there were no discussions about tax cuts at the moment – saying the focus was on getting inflation down. A Treasury spokesperson said: “We don’t comment on speculation about tax changes outside of fiscal events.”
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