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The Chief Executive of the Taxpayers’ Alliance John O’Connell urged the Chancellor to “bring forward” his income tax cut and to “double” it. Ministers have suggested that any talk of income tax cuts is unlikely to take place before autumn.
The comments come amid concerns about inflation skyrocketing to 11 per cent while the Bank of England raised interest rates to 1.25 per cent and warned of a stalling economy as the cost-of-living crisis continues to bite.
Speaking to express.co.uk, Mr O’Connell said: “If things are as bad as the economic indicators say, now is the time for the government to be bold.
“Politicians should remember that cutting taxes boosts productivity, creates growth, and puts money back into peoples’ pockets.
“Now is the time to help households with the cost-of-living crisis by bringing forward the income tax cut and doubling it.”
The Taxpayers’ Alliance is a non-partisan group dedicated to reforming Government spending, creating efficient public services and lowering taxes in the UK.
Ministers seemed to dismiss the prospect of tax cuts in a whirlwind round of interviews this morning.
Chancellor Rishi Sunak hinted to ITV News that tax cuts were unlikely in the near future.
He said: “I will make sure that I handle our borrowing and debt responsibly so that we don’t make the situation worse and increase mortgage rates more than they otherwise are going to have to go up.”
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Communities Secretary Michael Gove echoed the Chancellor and said that tax cuts should not go ahead until inflation was brought under control.
He told TalkTV: “The Chancellor has the right policy…He can’t spend all of the public money that many would wish to and which, in a perfect world, we’d like to.”
He added: “You’ve got to make sure that you balance the books at a government level.
“There are inevitably tough times ahead for the UK and the global economy.”
Business Secretary Paul Scully added to the Government’s united front on the issue. Speaking to Sky News he said tax cuts would have to wait until at least Autumn.
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He said: “Come the next Budget [Rishi Sunak] will have to look at the balance.
“There won’t be tax cuts now, taxes are dealt with in a Budget in the Autumn.”
The spiralling cost of living is a major concern in the UK as Brits face record petrol prices of more than 185p a litre, 13-year-high interest rates and soaring inflation that is likely to continue to rise.
As interest rates rise, so do mortgages and other debts – hitting home owners as the cost of heating and lighting homes is also expected to continue to rise.
Inflation, expected to reach a 40-year-high of 11 per cent by October, will see the price of everyday items, including necessities like food, go up.
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