Chancellor Sajid Javid hints he could slash taxes within months as he also plans stamp duty shake-up to make life easier for first-time buyers
- Sajid Javid delivered a significant hint he will cut taxes in the upcoming Budget
- He admitted considering redrawing ‘fiscal rules’ followed by Philip Hammond
- He said he had yet to decide if the Budget will be before October 31 Brexit date
Sajid Javid last night delivered a significant hint he will cut taxes in the upcoming Budget
Sajid Javid last night delivered a significant hint he will cut taxes in the upcoming Budget – including for higher earners.
In an interview, the Chancellor labelled himself a ‘low-tax guy’ and suggested he would cut tax rates where this would raise more money.
He admitted he was considering redrawing the ‘fiscal rules’ followed by predecessor Philip Hammond, saying Britain has some of the ‘lowest rates on government debt this country has ever seen’.
‘I wouldn’t be doing my job if I wasn’t thinking seriously about how do we use [that opportunity],’ he told The Times.
Asked about taxes for higher earners, he said: ‘Wait and see for the Budget. But it wouldn’t be any surprise that I think taxes should be efficient. We want to set them at a rate where we are trying to maximise revenue, and that doesn’t always mean that you have the highest tax rate possible.’
Mr Javid has also left open the prospect of sellers being liable for stamp duty rather than buyers amid growing concern over the London property market. Asked about the proposed tax change, he said: ‘I’m looking at various options. I’m a low-tax guy. I want to see simpler taxes.’
The Chancellor’s potential switch-up in stamp duty would mean first-time buyers avoiding paying the tax and helping families looking to buy larger properties – but the shift would mean bigger tax bills for property owners looking to downsize.
He promised that those earning the least would be the first in line to benefit from slashing taxes, but also hinted that higher earners could still see their tax bills reduced.
Mr Javid had suggested tax cuts for higher earners during his bid to become prime minister. Meanwhile Boris Johnson’s campaign proposal to raise the higher income tax threshold from £50,000 to £80,000 was heavily criticised.
Mr Javid had suggested tax cuts for higher earners during his bid to become prime minister. Meanwhile Boris Johnson’s campaign proposal to raise the higher income tax threshold from £50,000 to £80,000 was heavily criticised
Now in post, Mr Javid said the ‘lowest paid’ had to be taken into account when looking at tax cuts. ‘If you are going to have tax cuts, I think you should always be thinking about the lowest paid, and about how you can try and help them,’ he said.
‘There are many ways to try and help people that are facing day-to-day challenges, and you’ll have to be very conscious in a budget to make sure that you can try to focus on those that need it most.’
Mr Javid said he had yet to decide whether the Budget will be before the October 31 Brexit date. Mr Javid admitted that there were concerns about the global economy, and that recent trends suggested a looming recession.
He told the newspaper: ‘If trade in the US economy goes into recession, that’s going to have a global impact, given its influence on the global economy. There’s the US-China trade dispute, which will impact us all if it goes the wrong way.
‘There’s the massive slowing down of growth in the biggest economies in Europe, and we’ve just seen a negative GDP number out of Germany.’ But he went on: ‘That said, for us, right here and now, I think where we can take some comfort is the fundamentals of our own economy are very strong.’ Mr Hammond drew criticism this week for not releasing enough money for No Deal preparations.
But Mr Javid said the Treasury under his control was now fully on board with what he called the Brexit reset. He said: ‘It’s clear to me that the Treasury, the Treasury family, the Treasury itself, will be, actually is 100 per cent behind the reset in our approach to Brexit, which is, as you’ve seen, we want a deal, but to get a deal, the backstop’s got to go.’