Boris Johnson promised yesterday to cut government spending, and reduce taxes
Boris Johnson displayed a Thatcherite streak as he pledged yesterday to reduce government spending, and tax increases.
He also indicated that he would reduce tariffs for imported foods.
In his first major speech since this week’s bruising revolt against his leadership, the Prime Minister signalled a drive to cut the size of the state in the wake of the pandemic.
Echoing both Margaret Thatcher and Ronald Reagan, he said there were many areas where the Government should ‘simply get out of the way’ and let people get on with their lives.
He said he was determined to lower the record tax burden, which he described as an ‘aberration’ caused largely by the ‘fiscal meteorite of Covid’.
But sustained tax cuts would require a reduction in the size of the state following a period of ‘phenomenal corporate welfare’, he said.
In comments that will cheer the Tory Right, Mr Johnson said: ‘It is time for the Government to stop spending, and to start cutting taxes and cutting regulation.
Rishi Sunak resists Tory pressure to reduce personal taxes in his Autumn Budget. He argues that this would increase runaway inflation.
‘Sometimes the best way that government can help is simply to get out of the way. To do less or better, or simply not at all.’
Johnson released a hint suggesting that the tax-cutting program will begin with the lifting of import duties on food products that aren’t made in the country. This includes coffee, tea, and oil.
Speaking in Blackpool, he said the Government was ‘on the side of British farmers’ and would maintain ‘sensible’ tariffs to protect domestic agriculture.
But he added: ‘We are also on the side of British consumers. We do not grow many olives in this country that I’m aware of.
‘Why do we have a tariff of 93p per kilo on Turkish olive oil? Why do we have a tariff on bananas?’
Whitehall sources confirmed the plans to cut food tariffs – a move opposed by Trade Secretary Anne-Marie Trevelyan, who argues it could weaken the UK’s hand in trade negotiations. Mr Johnson is said to have sided with other Cabinet ministers, including Jacob Rees-Mogg, who argue it is a good way of using the UK’s post-Brexit freedoms to cut the cost of living.
However, the PM didn’t rule out further fuel duty reductions. But he said the first priority was to ensure the 5p-a-litre cut agreed in March is being passed on in full and not ‘swallowed up’ by petrol retailers.
Rishi Sunak resists Tory demands to reduce personal taxes in his Autumn Budget. He argues that this would increase runaway inflation. The PM appeared to acknowledge the risk but added: ‘The overall burden of taxation is now very high. Sooner or later – and I would much rather it was sooner than later – that burden must come down.’
Trade unions condemned the comments of PM. They stated that wage restriction was needed in order to avoid inflation sparking recession.
He suggested other ways to reduce the cost of living such as increasing the number children that a childminder is able to look after.
And he called for reform of the rail industry to prevent even higher fares, such as closing ticket offices that now see little use, saying: ‘There are fully manned ticket offices in this country that barely sell a ticket a week.’
Echoing both Margaret Thatcher and Ronald Reagan, Johnson said there were many areas where the Government should ‘simply get out of the way’ and let people get on with their lives