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Tory champions of low taxes warn the country\u2019s economic recovery will be delayed if \u201cpunitive\u201d tax levels stay in place.<\/p>\n
Demands for cuts have intensified in the wake of figures showing Government borrowing in July was lower than expected.<\/p>\n
Tory MP Greg Smith said: \u201cTax cuts are both morally and economically right. Let\u2019s get on and cut the burden the state puts on people\u2019s back pockets.<\/p>\n
\u201cWith borrowing lower than expected, that is the shining green light to the treasury to start reducing the tax burden. The longer we maintain punitive levels of taxation the longer it will take for the economy to recover.\u201d<\/p>\n
READ MORE: <\/strong> When is Rishi going to do something about the asylum system?<\/strong><\/p>\n John O\u2019Connell, chief executive of the Taxpayers\u2019 Alliance, said the figures were \u201can opportunity to get serious about economic growth\u201d and leading Tories have come forward with suggestions for cuts.<\/p>\n Mr O\u2019Connell added: \u201cFamilies and businesses are struggling with falling living standards and a 70-year high tax burden, and they need to know that there is light at the end of the tunnel.\u201d<\/p>\n Sir John Redwood, a Conservative MP who ran Margaret Thatcher\u2019s policy unit, said: \u201cThe Treasury needs to cut taxes to speed lower inflation and boost UK output.\u201d<\/p>\n He favours a rise in the VAT threshold for small businesses, and a suspension of the tax on home heating fuel, amid a raft of measures to boost growth.<\/p>\n Conservative MP Natalie Elphicke called for help for aspiring homeowners, saying: \u201cTax breaks to help first time buyers get on the housing ladder should be a priority. Far too many people are stuck renting when they need a home of their own.\u201d<\/p>\n Fellow Tory MP Craig Mackinlay said forecasters at the Treasury and the Office for Budget Responsibility were \u201cshambolic\u201d, adding: \u201cWe need to deliver growth, hope and proof that Conservatives will deliver for hard-pressed taxpayers.\u201d<\/p>\n However, Karl Williams of the Centre for Policy Studies played down the chance of tax cuts, saying: \u201cThe fact that July\u2019s government borrowing figures are lower than expected is positive news but those clamouring for tax cuts immediately shouldn\u2019t hold their breath. The UK Government is still paying record interest on its debt, much of which is index-linked to inflation, so reducing borrowing and getting inflation down remains critical to our long-term fiscal outlook.\u201d<\/p>\n We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info<\/p>\n Don’t miss… <\/strong> Juilian Jessop of the Institute of Economic Affairs cautioned that the improvement in borrowing \u201cmay only be temporary\u201d but said that \u201chigher wages, profits and prices will also boost tax revenues.\u201d<\/p>\n He said: \u201cThis is an unexpected windfall for the Treasury and it would be right to give some of it back. And the best way to fix the public finances is to grow the economy.<\/p>\n \u201cTax cuts that help make work pay and encourage investment should be part of the solution.\u201d<\/p>\n Duncan Simpson of the Adam Smith Institute noted that the \u201ctax burden on working Brits is at an all time high\u201d.<\/p>\n He said: \u201cThe Government should be looking for any wriggle room it can to cut taxes – most especially on incomes and on our job-creators.\u201d<\/p>\n Conservative MP Daniel Kawczynski also pushed for tax cuts to boost enterprise, saying: \u201cOf course we have taken a huge battering economically over Covid and the state of the public finances has been very strained. Nevertheless, I would urge the Chancellor to do everything possible to reduce corporation tax and to reduce taxation as much and as quickly as is fiscally prudent because as Conservatives, instinctively \u2013 it\u2019s in our blood \u2013 we know that economic growth only comes when the people, the private sector, who are responsible for this are empowered and have a taxation system that does not put them at an economic disadvantage to their competitors in other European countries and beyond.\u201d<\/p>\n![](\"https:\/\/cdn.images.express.co.uk\/img\/dynamic\/139\/590x\/secondary\/4928614.jpg?r=1693068008320\")
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