Paul Scully grilled on rise in taxation
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In a City of London lecture, the Chancellor will signal his desire to reduce the tax burden that has soared to a record high during the pandemic. He is set to plead for patience and reject calls from many, including from within his party, for swift cuts in levies that risk leaving the NHS and public services underfunded. Mr Sunak will say: “I am going to deliver a lower tax economy but in a responsible way that tackles long-term challenges.”
He risks angering some Tories by describing their demands for immediate unfunded tax cuts as “flippant”.
The Chancellor will set out his vision for “a lower tax, dynamic market economy” in the annual Mais lecture at the University of London’s Bayes Business School.
He is expected to tell his audience of City financial chiefs and academics: “I firmly believe in lower taxes. The most powerful case for the dynamic market economy is it brings economic freedom and prosperity.”
Mr Sunak will take on Conservative MPs and economists who claim all tax cuts eventually lead to extra Treasury revenue due to the increase in economic activity they encourage.
He will say: “I am disheartened when I hear the flippant claim that tax cuts always pay for themselves – they do not.
“Cutting tax sustainably requires hard work, prioritisation and willingness to make difficult and often unpopular arguments elsewhere.”
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