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UK
Tax cuts are the only hope, Tories tell Sunak: The PM MUST return to traditional Conservative values after Labour wins by-elections in Mid Bedfordshire and Tamworth, party insiders say
- The Prime Minister has been urged to cut taxes and return to traditional values
Sunak ‘considering tax cuts to lure back lost Tory voters’
Rishi Sunak could be considering major tax cuts in a bid to win over traditional Tory voters after the two by-election defeats this week.
by Joseph Connor
2023-10-21 11:18
in News, Politics
Rishi Sunak could be considering major tax cuts in a bid to win over traditional Tory voters after the two by-election defeats this week.
The threshold for paying the 40% higher rate of income tax could be raised in the 2024 spring budget, according to a report in the Daily Telegraph.
The Times reported that the Prime Minister Rishi Sunak and Chancellor Jeremy Hunt are considering cuts to either stamp duty or inheritance tax.
The suggested tax cuts come after Labour claimed “historic” victories by overturning large Conservative majorities in Thursday’s by-elections in Tamworth and Mid-Bedfordshire.
The Telegraph report said about 5.6 million people pay the higher rate of income tax which is levied on earnings over £50,271, with Tory strategists believing “many of them vote Conservative and would be boosted by the tax cut”.
The Times also suggests a tax cut could be on its way in 2024 ahead of the next general election, with the most likely course being a reduction of stamp duty because it is seen to be “aspirational” as it could “boost the economy by making it cheaper to move” and also appeal to middle-aged voters “who had deserted the party”.
Speaking to broadcasters as he prepared to fly back to the UK from meeting leaders in the Middle East, Mr Sunak admitted the by-elections produced “obviously disappointing results” but it was “important to remember the context”.
He said: “Mid-term elections are always difficult for incumbent governments. And of course there are also local factors at play here.”
The Prime Minister added that he remained “committed to delivering on the priorities of the British people” after the defeats.
Mr Sunak said he would “keep on” with his five priorities, which include halving inflation and stopping migrants in small boats crossing the Channel.
A Downing Street spokeswoman declined to comment on the reports and added: “I wouldn’t be able to speculate ahead of a fiscal event.”
Fumio Kishida
By Isabel Reynolds and Yuki Hagiwara
October 20, 2023
Japanese Prime Minister Fumio Kishida instructed his ruling party executives to consider introducing temporary tax cuts, days before two special elections in which his ruling party faces tough opposition to hold onto its seats.
“I instructed that measures be considered to return something to the people, including income tax cuts,” Kishida told reporters after meeting the policy chiefs of the ruling Liberal Democratic Party and its junior coalition partner Komeito late on Friday. He added he had asked for the policies to be drawn up quickly.
The move comes even as the deeply indebted country seeks ways to pay for its biggest defense expansion since World War II and vows to expand support for families to levels comparable to those provided in Sweden.
LDP tax chief Yoichi Miyazawa told reporters a period of one year would be “common sense” for such a tax cut. Komeito policy chief Yosuke Takagi said a flat rebate, irrespective of income, would be appropriate.
Polling on voting intentions shows the opposition is ahead in a race for an upper house seat on the island of Shikoku, while LDP retains a narrow lead in a lower house constituency in the southwestern prefecture of Nagasaki, according to polling by the Yomiuri newspaper and other media.
Support for Kishida’s cabinet slumped to 29% from 37% the previous month in a poll carried out by the Asahi newspaper last weekend, the lowest since he took office two years ago. A slew of other media polls have also put his approval at its lowest ever.
Voters are dissatisfied with the steps Kishida’s taken to shield them from the effects of inflation, polls have shown. Those measures include expanding and extending gasoline subsidies to the end of the year. At the same time, a poll by NHK this month showed three-quarters of respondents were uneasy about the country’s fiscal situation.
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