Prime Minister Rishi Sunak promises to reward hard work with tax cuts
Rishi Sunak has promised to reward hard work with tax cuts as he struck an optimistic note over the UK’s economic prospects.
Official figures next week may show the UK slipped into a technical recession at the end of last year, while the prime minister is facing a heavy opinion poll deficit against Labour and criticism from within his own party.
But in an interview with The Times this weekend, Mr Sunak told Tory rebels he was “totally up for the fight” as he looked to paint a rosier picture of the country’s economic future.
“Because economic conditions have improved, because the plan is working, you are starting to see mortgage rates come down and we have been able to cut taxes,” he said.
“I do believe those pressures are starting to ease and that hopefully over the course of this year we can continue to make even more progress.”
But although he said “there is a sense that the country is pointing in the right direction,” he struck a cautious note, saying that taxes would only be slashed “when it is responsible to do so”.
Chancellor Jeremy Hunt announced a 2% cut – from 12% to 10% – in national insurance in November.
Jeremy Hunt has sought to temper expectations. Pic: Reuters
Many economists said his autumn statement had factored in implausible public spending squeezes, while the International Monetary Fund said further tax cuts in his 6 March budget could put at risk the government’s ability to invest in the NHS and other vital services.
Mr Sunak appeared to echo his chancellor, who has already sought to temper expectations over the size of any tax cuts in his spring budget, despite senior Tories publicly indicating they are coming.
“None of us ever talk about this stuff before budgets,” he said.
“Other people are. I think they’re over-interpreting. What the chancellor and I have said is that of course our long-term plan is to cut people’s taxes.”
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The prime minister hinted the spring budget could see a further national insurance cut – telling the paper he and his party believe “hard work should be rewarded”, adding: “Cutting national insurance is a very direct way to do that.”
Labour’s shadow chief secretary to the Treasury, Darren Jones, said: “Rishi Sunak’s words will ring hollow to the millions of families across Britain who have been left worse off after 14 years of Conservative failure.
“There have been 25 Tory tax rises since the election and the average household is set to be £1,200 worse off under Rishi Sunak’s tax plan.
“It’s time for a change and a Labour government with a plan to invest in Britain’s future.”
His promise to slash taxes came after the publication of his own tax summary, which showed he paid more than £500,000 in UK tax last year, as his total income rose to £2.2m.
The document showed he paid an overall tax rate of about 23% of his annual income – about the same as a teacher – sparking calls for tax reform.
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Politics
UK and France have ‘shared responsibility’ to tackle illegal migration, Emmanuel Macron says
Emmanuel Macron has said the UK and France have a “shared responsibility” to tackle the “burden” of illegal migration, as he urged co-operation between London and Paris ahead of a crunch summit later this week.
Addressing parliament in the Palace of Westminster on Tuesday, the French president said the UK-France summit would bring “cooperation and tangible results” regarding the small boats crisis in the Channel.
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King Charles III at the State Banquet for President of France Emmanuel Macron. Pic: PA
Mr Macron – who is the first European leader to make a state visit to the UK since Brexit – told the audience that while migrants’ “hope for a better life elsewhere is legitimate”, “we cannot allow our countries’ rules for taking in people to be flouted and criminal networks to cynically exploit the hopes of so many individuals with so little respect for human life”.
“France and the UK have a shared responsibility to address irregular migration with humanity, solidarity and fairness,” he added.
Looking ahead to the UK-France summit on Thursday, he promised the “best ever cooperation” between France and the UK “to fix today what is a burden for our two countries”.
Sir Keir Starmer will hope to reach a deal with his French counterpart on a “one in, one out” migrant returns deal at the key summit on Thursday.
King Charles also addressed the delegations at a state banquet in Windsor Castle on Tuesday evening, saying the summit would “deepen our alliance and broaden our partnerships still further”.
King Charles speaking at state banquet welcoming Macron.
Sitting next to President Macron, the monarch said: “Our armed forces will cooperate even more closely across the world, including to support Ukraine as we join together in leading a coalition of the willing in defence of liberty and freedom from oppression. In other words, in defence of our shared values.”
In April, British officials confirmed a pilot scheme was being considered to deport migrants who cross the English Channel in exchange for the UK accepting asylum seekers in France with legitimate claims.
The two countries have engaged in talks about a one-for-one swap, enabling undocumented asylum seekers who have reached the UK by small boat to be returned to France.
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Britain would then receive migrants from France who would have a right to be in the UK, like those who already have family settled here.
The small boats crisis is a pressing issue for the prime minister, given that more than 20,000 migrants crossed the English Channel to the UK in the first six months of this year – a rise of almost 50% on the number crossing in 2024.
President Macron greets Commons Speaker Sir Lindsay Hoyle at his address to parliament in Westminster.
Elsewhere in his speech, the French president addressed Brexit, and said the UK could not “stay on the sidelines” despite its departure from the European Union.
He said European countries had to break away from economic dependence on the US and China.
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“Our two countries are among the oldest sovereign nations in Europe, and sovereignty means a lot to both of us, and everything I referred to was about sovereignty, deciding for ourselves, choosing our technologies, our economy, deciding our diplomacy, and deciding the content we want to share and the ideas we want to share, and the controversies we want to share.
“Even though it is not part of the European Union, the United Kingdom cannot stay on the sidelines because defence and security, competitiveness, democracy – the very core of our identity – are connected across Europe as a continent.”
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