Rishi Sunak was warned by Lord Frost that Brexit would fail if the UK does not reduce taxes and bureaucracy.
The Brexit Minister said the private sector ‘isn’t just a source of taxes’ and cannot be treated ‘as just a convenient way of keeping the public sector running’.
He said the UK ‘can’t carry on as we were before’ the split from Brussels and ‘if after Brexit all we do is import the European social model we will not succeed’.
These comments are a direct shot at the Chancellor for raising taxes at October’s Budget.
Lord Frost, the Brexit Minister, said the private sector ‘isn’t just a source of taxes’ and cannot be treated ‘as just a convenient way of keeping the public sector running’
The comments of Lord Frost will be seen in the context of Rishi Sonak’s remark about the Budget after the Chancellor raised taxes.
The UK tax burden is set to rise to the equivalent of 36.2 per cent of gross domestic product by 2026/27 under Mr Sunak’s proposals, according to the Office for Budget Responsibility.
That will be the highest level seen since Clement Attlee’s post-war Labour government in the early 1950s.
Lord Frost delivered his tax warning to Mr Sunak as he addressed the Margaret Thatcher Conference on Trade last night.
Speaking at the event hosted by the Centre for Policy Studies think tank, Lord Frost said: ‘My job is to drive change within government, to push policy in the right direction and to overcome the forces of entropy, of laziness, of vested interest.
“What Brexit will mean for the future depends on how we use these opportunities. It is whether we can open up, liberate, allow competition, make our own markets more competitive, and provide the right conditions to foster innovation, productivity, growth, and other positive outcomes.
“So I disagree with the view of people who feel the private sector can be treated as an easy way to maintain the public service. It isn’t just a source of taxes. It is not a group of people that will do unintentionally bad things, unless they are closely monitored by the government.
‘We can’t carry on as we were before. If we import only the European social model after Brexit, we won’t succeed.
“We haven’t succeeded in rolling back the borders of the European Union, Britain’s with Brexit. We’re only importing the European model.
Minister said that the UK needed to’reform quickly’ and would need to do things different from those in the EU.
According to Mr Sunak’s proposal, the UK’s tax burden will rise to 36.2 percent of the gross domestic product in 2026/27. This is according to the Office for Budget Responsibility
He said, “If we adhere to EU models but with our tariff wall and a smaller market we will not succeed,”
Lord Frost frequently stated his conviction that the UK should abandon EU red tape after it splits from the bloc.
He claimed that he support diversity, not just for its sake but because it’s a national necessity.
He stated that he had already started the project, but he would admit there was still much to be done.