Category Archives: Tax and spending

Rishi Sunak says he is underdog in PM race as ‘forces that be’ want Truss

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Former chancellor suggests Tory party powers hope leadership contest will be ‘a coronation’ for his rival

Rishi Sunak has positioned himself as the underdog in the Conservative leadership race, claiming the “forces that be” want Liz Truss to be the next prime minister.

Addressing a crowd in Grantham on Saturday, the Lincolnshire home town of Margaret Thatcher, Sunak declared “have no doubt, I am the underdog” and suggested that Conservative party powers want the race to be “a coronation” for Truss.

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Holidaymakers face delays as fuel price protesters block M5

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Slow-driving convoy caused long delays to those heading to Devon and Cornwall on the first day of the school holidays

Protesters campaigning against high fuel prices have disrupted holiday getaways to the south-west of England by driving in convoy slowly up and down a motorway before blockading a petrol station.

The convoy drove at 30mph on three lanes of the M5 north and south in Somerset and the Bristol area on Friday morning as tens of thousands of people headed to Devon and Cornwall to begin summer breaks.

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Tory leadership race: Rishi Sunak calls himself ‘common sense’ Thatcherite – as it happened

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Former chancellor says UK ‘needs to control borders’ and again references Margaret Thatcher

In an interview with GB News, Liz Truss was asked if she would keep the expensive wallpaper in the Downing Street flat, installed as part of Boris Johnson’s controversial refurbishment, if she became PM. In what is being seen by some as a dig at Johnson, she replied:

I’m not going to have the time to be thinking about the wallpaper in No 10, because we’ve only got two years until the general election – we need to hit the ground running.

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Rishi Sunak steps up attack on Truss tax cuts as poll puts his rival well ahead

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Former chancellor says opponent’s economic policies risk stoking inflation and pushing up interest rates

Rishi Sunak has launched his strongest attack yet on his rival Liz Truss’s economic policies, claiming her £30bn plans for unfunded tax cuts risk stoking inflation and pushing up interest rates.

His attack came as a new poll of Tory party members gave Truss a commanding lead in the race to become prime minister.

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Liz Truss’s tax and spending plans sow consternation among economists

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Analysis: experts are lining up to warn that her policies will increase inflation and leave the UK with higher debt

Liz Truss claims her economic agenda of tax cuts and public spending will revitalise the UK economy, but it is not just her rival prime ministerial candidate Rishi Sunak arguing that the measures will be self-defeating.

Economists have lined up to warn that her £30bn package – including the reversal of this year’s national insurance rise, the suspension of green levies on power bills, and the cancellation of a sharp rise in corporation tax in 2023 – will increase inflation and leave the government with higher debt bills.

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Tory contest shows government levelling up agenda is dead, Lisa Nandy to say

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Shadow minister to say PM hopefuls are vying ‘for the mantle of Margaret Thatcher, promising tax cuts for the wealthy’

The shadow communities secretary, Lisa Nandy, will claim the Conservative leadership contest has shown the government’s commitment to levelling up is dead, as she announces plans to give local communities the right to buy up assets such as empty shops.

Nandy will use a speech in Darlington to say Labour would press ahead with handing power to communities outside London and the south-east in an attempt to rebalance the UK’s economy.

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‘Travelling circus’: Starmer says Tory hopefuls have lost economic credibility

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Exclusive: Labour leader, speaking after meeting German chancellor, condemns candidates’ ‘fanciful’ spending plans

Keir Starmer has dismissed the acrimonious Conservative leadership race as a “travelling circus”, in which the candidates have demolished their party’s economic credibility by promising billions of pounds of unfunded tax cuts.

Speaking on a visit to Berlin where he held talks with the German chancellor, Olaf Scholz, the Labour leader highlighted the “fanciful” spending pledges made by the five contenders battling it out to succeed Boris Johnson.

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Liz Truss bids to save Tory leadership campaign with new tax cut pledges

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Foreign secretary announces tax cut proposals worth billions of pounds during online leadership debate

Liz Truss has sought to breathe new life into her faltering Conservative leadership campaign with a flurry of uncosted tax cut promises worth billions of pounds, as the five remaining candidates took part in their first mass debate.

Truss, who has the third highest number of Tory MPs’ votes – behind Rishi Sunak and Penny Mordaunt, promised to scrap a planned rise in corporation tax and suspend green energy levies, costing more than £20bn a year overall.

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Eight MPs make it on to first Tory leadership ballot as Sajid Javid pulls out of the race – live

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Kemi Badenoch, Suella Braverman, Jeremy Hunt, Penny Mordaunt, Rishi Sunak, Liz Truss, Tom Tugendhat and Nadhim Zahawi garner enough support

Jacob Rees-Mogg, the Brexit opportunities minister, and Nadine Dorries, the culture secretary, have just told Sky News that they are backing Liz Truss for the Tory leadership.

Rees-Mogg says Truss had been his strongest supporter in cabinet in terms of seeking Brexit opportunities. He went on:

When we discussed taxation, Liz was always opposed to Rishi’s higher taxes. That again is proper Conservatism. And I think she’s got the character to lead the party and the nation.

Liz Truss is the best candidate. She’s a proper Eurosceptic. She will deliver for the voters. She’ll deliver for the voters. She believes in low taxation.

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Sunak will vow to tackle inflation and then lower taxes if he becomes PM

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Ex-chancellor to kick off his Tory leadership campaign as speculation grows over who could back him

Rishi Sunak will kick off his leadership campaign on Tuesday with a promise to grip inflation and lower taxes, as speculation mounted over which candidates could swing in behind the former chancellor.

Sunak will promise “a return to traditional Conservative economic values – and that means honesty and responsibility, not fairytales.”

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Boris Johnson has left the UK economy in a parlous state

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Analysis: If Johnsonomics stands for anything, it is a lack of plan or vision to address Britain’s economic woes

Boris Johnson entered Downing Street in July 2019 with a promise. The doubters, doomsters and gloomsters were going to get it wrong again: his leadership would make Brexit a success, re-igniting an economy stalled by the divisions over Europe.

Three years later, almost to the day, he prepares to leave with the country reeling from a political implosion of his own making, and an economy teetering on the brink of recession.

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Nadhim Zahawi: is new chancellor going to change direction on economy?

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Analysis: Rishi Sunak’s successor treading tightrope between spending to keep PM in power and dealing with economic crisis

Should he remain in the job for longer than some political commentators expect, Nadhim Zahawi faces a balancing act as chancellor. He must walk the line between doing what it takes to prevent the political implosion of Boris Johnson’s government, and dealing with the worst succession of economic shocks to hit Britain since at least the 1970s.

As the fourth Conservative chancellor in as many years, parachuted in after Rishi Sunak resigned with a stinging critique of Johnson’s devil-may-care attitude towards tax and spending, Zahawi is expected to face heavy pressure from the prime minister to cut taxes to revive the economy.

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Boris Johnson seeks to defuse row over abandoning defence spending pledge

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PM insists manifesto promise of above-inflation increase will be kept despite Downing Street ‘reality check’ briefing

Boris Johnson faces a potential rift with senior ministers and generals at the start of a vital Nato summit in Madrid, after Downing Street indicated it would ditch a key manifesto commitment on defence spending.

In a chaotic sequence of events, a senior government source said there needed to be “a reality check” on the pledge to increase the defence budget each year by 0.5% above inflation, only for Johnson to try to argue it would be achieved.

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Fracking firms could share in UK fossil fuel tax breaks worth billions

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Exclusive: Campaigners say funding may provide incentive to restart fracking if moratorium is lifted

Fracking companies are likely to be eligible for tax breaks, potentially worth billions, that the government is extending to oil and gas companies to encourage new exploration of fossil fuel resources.

Combined with high gas prices, the extra funding – which amounts to a subsidy, according to campaigners – could provide a strong incentive to restart fracking operations if a moratorium in the UK is lifted, which could happen as early as this week.

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Queen’s ‘seabed rights’ swell to value of £5bn after auction of plots

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British crown estate portfolio rises in value by 8.3% to £15.6bn

The value of rights owned by the Queen’s property company to exploit the seabed around Britain’s coastline has swelled to £5bn after a record-breaking auction of plots for offshore windfarms.

Profits for the crown estate, which generates money for the Treasury and the royal family, jumped by £43.4m to £312.7m in the year to the end of March.

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Covid fraud: how bounce back loans paid for cars, watches and even porn

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As details emerge, concerns grow about Treasury’s efforts to recover almost £5bn wrongly claimed

When Keith Hamblett, a fruit and vegetable seller from Tyne and Wear, asked his bank for a government-backed loan in the autumn of 2020, the economy was still in trouble after lockdowns, and coronavirus cases were rising.

The Covid bounce back loan scheme was a welcome relief for many smaller companies, and Hamblett received £28,000.

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Loophole could let North Sea oil and gas giants slash UK windfall tax bill

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Critics warn chancellor Rishi Sunak will raise only a fraction of planned £5bn if firms offset new investment against profits

North Sea oil and gas companies that already benefit from huge tax breaks could use fresh rules to slash how much they pay under a new windfall tax announced by Rishi Sunak as part of his £15bn cost of living package, according to a thinktank.

The chancellor risks raising a fraction of the £5bn he expects from the complex scheme – which allows the cost of new investments to be offset against profits – should oil and gas companies take the opportunity to dramatically reduce their contribution to the exchequer, said the left of centre Common Wealth.

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Top Tories say Boris Johnson is ‘plunging party into an identity crisis’

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Partygate and U-turns on tax are ‘undermining message’, say Conservative MPs as more call for him to quit

Boris Johnson has plunged the Conservative party into an acute identity crisis as a result of Partygate and U-turns over tax policy, senior Tories warned last night, as more MPs called for him to resign as prime minister.

Former Tory leader Iain Duncan-Smith told the Observer his party had been left with an “enormous identity problem” because it had raised taxes instead of cutting them under Johnson and the chancellor, Rishi Sunak, undermining a core Tory message that had helped win it successive general elections.

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Sunak U-turns on ‘energy profits levy’ in £15bn cost of living package

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Chancellor’s measures, including tax on oil and gas companies, criticised as too late and a ‘drop in the ocean’

Rishi Sunak bowed to months of pressure over the cost of living crisis with a £15bn package of support, part-funded by executing a remarkable U-turn to impose a windfall tax on energy companies.

Announcing the measures on Thursday, in a bruising week for the government, the chancellor said his “significant set of interventions” would help the poorest in society – with a one-off £650 payment for 8 million families on means-tested benefits, alongside an extra £200 for all energy bill payers that will not have to be repaid.

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Millionaires join Davos protests, demanding ‘tax us now’

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Group call for fresh taxation of wealthy to tackle cost of living crisis and gulf between rich and poor

A group of millionaires have joined protests against the World Economic Forum gathering of the business and political elite in Davos, Switzerland, demanding that governments “tax us now” to tackle the burgeoning gulf between rich and poor.

The unlikely protesters, who describe themselves as “patriotic millionaires”, called on world leaders attending the annual conference on Sunday to immediately introduce fresh taxes on the wealthy in order to tackle the “cost of living scandal playing out in multiple nations around the world”.

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