Sweeping tax cuts for workers would help in no deal Brexit, Sajid Javid told Cabinet

Sajid Javid proposed sweeping tax cuts and cutting regulations to help Britain ride out a no deal Brexit at a special Cabinet meeting, it emerged today.

The Home Secretary surprised colleagues with a long list of policies to radically overhaul the UK economy if the negotiations with Brussels break down.

The long intervention at Thursday’s meeting of Theresa May’s top team was widely seen in the room as a blatant leadership pitch, reports today suggested.

Sajid Javid (pictured in Downing Street on Thursday) proposed sweeping tax cuts and cutting regulations to help Britain ride out a no deal Brexit at a special Cabinet meeting, it emerged today

Other senior ministers with an eye on the top job made their own proposals, a series of extraordinary leaks suggest.

Commons leader Andrea Leadsom proposed ‘Brexit bonds’ to get people investing in the Government, while Transport Secretary Chris Grayling suggested a one off Brexit rebate of £200.

Thursday’s marathon session of the Cabinet was called to demonstrate to Brussels Britain is ready to walk away from the EU without any deal.

The meeting was briefed on a grim economic scenario by Bank of England Governor Mark Carney and discussed not paying the Brexit divorce bill in full.  

Mr Javid used his contribution to Cabinet to outline a ‘huge shopping list’ of policies, the Sunday Times revealed.

His proposals included sweeping tax cuts and deregulation on workers’ rights, scrapping automatic enrolment into pension schemes and ditching environmental regulations.

‘He referred to it as a shock-and-awe strategy,’ said one minister.

Another said: ‘There were business measures like accelerated capital allowances. It was a list of things we aren’t doing that he thinks we should be doing.’

Mr Javid’s proposals were a series of targeted ‘tax incentives’ to ensure the economy keeps going amid uncertainty and to attract ‘global talent’ to Britain, the Sunday Telegraph said.

Theresa May (pictured in a BBC Panorama to be broadcast this week) convened her Cabinet ti discuss no deal but saw rivals to succeed her compete to produce different ideas 

It echoes a set of proposals he made around the time of a failed leadership bid by Stephen Crabb, which saw the two ministers run on a joint ticket under which Mr Javid would have become chancellor.

Speaking in July 2016, Mr Javid called for emergency corporate and personal tax cuts to avert a Brexit slump.

At the time Mr Javid was business secretary and he also suggested tax breaks for companies to boost investment and proposed a doubling in tax credits for research.

At the special Cabinet, Mrs May secured the agreement of her ministers to step up preparations for no deal.

Following the talks, a new tranche of papers on the impact of crashing out of the EU says motorists would need new £5.50 international permits to use their cars on the continent.

The meeting was briefed on a grim economic scenario by Bank of England Governor Mark Carney (pictured leaving No 10 after the meeting  and discussed not paying the Brexit divorce bill in full

They also warn that if negotiations with Brussels fail ex-pats might be forced to retake driving tests after March next year, as their UK ones will no longer be valid.   

Britons with less than six months to run on their passports would also have to renew before travelling to the EU – while traditional-style British blue passports will not start being issued again until late in 2019.

The government played down fears that holidaymakers would be hit with swingeing roaming charges for using mobile phones in the EU – saying the biggest telecoms companies have agreed not to impose extra fees.

But in one of the most striking warnings, the documents predicted that the EU will refuse to share information with the UK about asteroids that could wipe out humanity.

The latest slew of ‘technical’ notices were published after Mrs May put ministers on notice at a special Cabinet meeting that large-scale ‘no deal’ Brexit plans will have to be activated if agreement has not been reached by mid-November.  

 

 

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