1. Money

    Katy Balls

    Rishi Sunak promises more tax cuts... just not yet

    Rishi Sunak promises more tax cuts... just not yet
    Rishi Sunak (Credit: Getty images)
    Text settings
    Comments

    After Boris Johnson faced a confidence vote by his own MPs, the Prime Minister has come under pressure to bring in changes to his government. This ranges from talk of a reshuffle to shaking up the No. 10 operation yet again. But the issue which has the broadest support among MPs calling for change is a desire for Johnson to cut taxes. MPs from across the party – from the One Nation wing's Damien Green to the ERG's Steve Baker – have suggested this ought to be done sooner rather than later.

    However, it appears they will have to wait a little while longer. This evening Rishi Sunak spoke to Tory MPs at a meeting of the 1922 committee. The Chancellor addressed the issue – telling MPs in the room that he did want to cut tax – but it had to be done when the fiscal weather allows. Sunak said he would 'never, on an act of blind faith, do them at the expense of the fundamental soundness of our economy or public finances'. The Chancellor cited the 'largest personal tax cut in a decade' in March as evidence he does want to cut taxes – adding that 'tax cuts are the reward for a government that is prepared to make difficult choices elsewhere... I promise you we are.'

    While not everyone in the room was thrilled by the timeline, MPs present report that Sunak signalled that the first priority would be business tax cuts in the autumn and then personal tax cuts after that. However, the Chancellor still received a decent reception – with supportive questions from MPs including Felicity Buchan and Mark Harper. One MP says they took from the meeting that the bulk of the party accepts the days of the magic money tree are over – spending discipline and lower taxes are instead vital going forward.