Labor backs Rishi Sunak to cut income tax by 2%, but warn Tory pledge could be ‘just talk’
Labor backs Rishi Sunak to cut income tax by 2% but warns Tories’ pledge could be ‘just talking’
- Sham Chancellor of Labor has expressed support for the 2p income tax cut
- Rachel Reeves also warned that the proposed decision could simply be a “discussion”
- Earlier this week it was reported that Rishi Sunak had proposed the income tax cut
- A total of ten proposals have been developed which will reduce the current tax burden
The shadow chancellor urged Rishi Sunak to follow through on rumors of plans to cut income tax by 2 pence.
Rachel Reeves of Labor has expressed support for the measure the Chancellor would like to see implemented ahead of the next general election.
However, Reeves added that she was not convinced that Sunak’s proposed plans would boil down to anything other than âtalk, talk, talkâ.
Speaking on CityAm, Reeves said, âI think this tax cut speculation by Rishi Sunak, I think it’s kind of a triumph of hope over reality.
Fictional Labor Chancellor Rachel Reeves (pictured) urged Chancellor Rishi Sunak to follow through on rumors of plans to cut income tax by 2p
âIt’s all well and good to say that the Chancellor believes in low taxes, but it doesn’t pay the bills, it doesn’t free up money for investment. What it is if you actually lower taxes.
Reeves added that politicians should be judged by what they deliver, rather than what is promised.
While a Labor source said The telegraph: âWe want to see lower taxes for workers, but we are too far from a general election to start defining tax policies. ”
His comments come after The temperature reported earlier this week that Rishi Sunak reportedly intends to cut income tax by 2 pence to the pound before the next election as he hopes to end his reputation as a “high tax” chancellor.
The Chancellor of the Exchequer plans to cut income taxes over the next three years, ahead of the next general election in 2024.
Sunak has called on officials to come up with plans that will reduce the tax burden while the Tories also consider removing the 45 pence increase in income tax.
His preferred plan would be to reduce income tax, but ten proposals have been made in total, including lower inheritance taxes and lower tariffs for households using green energy.
Mr Sunak raised taxes in the October budget, his changes expected to bring the tax burden to its highest level since Clement Attlee’s postwar Labor government in the early 1950s.
Earlier this week it was reported that Rishi Sunak (pictured) plans to cut income tax by 2 pence to the pound before the next election as he hopes to end his reputation as a ‘high tax chancellor “.
But Sunak is determined to end his reputation as a “high tax, high spend” chancellor, while Boris Johnson also hopes to be a tax-cutting prime minister.
Amid reports of his income tax plans, Sunak has reportedly told his colleagues that tighter limits on government spending would be needed if the tax cuts could be implemented.
A source from the Treasury told The Times: “But things are tight and in order to keep our promise to cut taxes, we need to be disciplined when it comes to spending.”
Another proposal could see Sunak cut the VAT rate by 20%, while the Treasury works on plans to raise the threshold for inheritance tax.
Sunak has asked officials to come up with plans that will reduce the tax burden while Tories also consider removing the 45 pence increase in income tax (stock image)
The current threshold stands at Â£ 325,000, which increases if it is property left to children, with 22,800 estates paying 40% on anything higher. The figure has not been adjusted since 2009.
Of the ten proposals that have been developed, it is understood that more in-depth work is underway on three plans, focused on reducing VAT, income tax and inheritance tax.
A Treasury source has reportedly said that although plans may be disrupted by Covid and inflation, Sunak and the Prime Minister want the cuts to continue.