Rishi Sunak warns he will curb benefits and government spending to help fund tax cuts

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Rishi Sunak has warned he will curb benefits and government spending to help fund tax cuts.

In a brand new interview, the prime minister mentioned his precedence was reducing taxes, however that may end in “difficult decisions” having to be made on public spending, with out going into specifics.

His feedback got here after he revealed earlier this week he was aiming for an election within the second half of this yr, having dominated out going to the polls in 2025.

The prime minister informed The Sunday Telegraph: “When I say that I want to keep cutting taxes, that’s what we’re going to deliver. We’re going to do that responsibly. That requires difficult decisions on public spending. It requires difficult decisions to control welfare. Those, I believe, are the right things to do for our country.

“I want to control public spending, I want to control welfare, which we’re doing and because we’re doing that, and because we’re being disciplined with borrowing and our debt, we’re going to be in a position to cut taxes.

“I want to keep cutting people’s taxes. There’s no way we can do that unless we restrain the growth in the public sector and government spending.”

The Tories used final yr’s autumn assertion to unveil a two per cent lower to National Insurance in a bid to enhance the get together’s fortunes, which chancellor Jeremy Hunt mentioned will save the common employee £450 a yr. The lower got here into impact from Saturday however adjustments to different taxes, together with the freezing of tax thresholds below Mr Sunak as chancellor, imply the tax burden going through households continues to be rising.

The Resolution Foundation has mentioned anyone incomes below £26,000 will be worse off, with the tax lower benefiting these incomes £50,000 a yr probably the most. The Institute for Fiscal Studies (IFS) has mentioned a employee incomes the common wage of £35,000 can be £440 worse off by 2028 and general, the tax burden continues to be heading in the right direction to be the very best for the reason that Second World War.

Mr Sunak is reportedly contemplating scrapping inheritance tax within the March Budget, as he scrambles to enchantment to voters forward of subsequent yr’s common election.

Opinion polls have for 2 years persistently given Labour a double-digit lead over the Conservatives, who’ve churned via three prime ministers in 18 months amid a stuttering economic system and frequent scandals.