Rishi Sunak urges voters to trust him on tax cut promise
Rishi Sunak has urged voters to trust that he will deliver on his pledge to cut taxes before the next general election.
The chancellor has pointed to new changes to the universal credit system as evidence that he wants to do more to help families.
He said “actions speak louder than words” as he cheered the move to cut Universal Credit’s tapering rate from 63 pence in the pound to 55 pence.
He said that ‘people need to get the confidence they need to know that when I said my aim is to cut taxes over the course of this Parliament, I mean it’.
Mr Sunak made the comments in an interview with The Daily Express when he: visited a community center in Westminster to mark the Universal Credit change.
The phasing out rate represents the amount of benefits a claimant loses for every pound he earns above a fixed work allowance.
The changes mean that almost two million families will have an extra £1,000 per year on average.
But campaigners have said that millions of people will benefit from the change, but at least two million people will not benefit at all because they either cannot work or do not earn enough.
Rishi Sunak cut 63p in the pound to 55p in the universal credit reduction rate – the amount of benefits a claimant loses for every pound he earns above a fixed work allowance
Under the Universal Credit discount, a single mother of two, who rents in Darlington and has a full-time job for the National Living Wage, will see her own income increase by £1,200 year-on-year
Mr Sunak raised taxes in the budget in October, with his changes that would take the tax burden to its highest level since Clement Attlee’s post-war Labor government in the early 1950s.
The Office for Budget Responsibility has said the tax burden will rise to the equivalent of 36.2 percent of gross domestic product by 2026/2027 according to Mr Sunak’s proposals.
The chancellor tried to defend his credentials as a low-tax Tory when he highlighted the Universal Credit change.
He told the newspaper: ‘This policy that will come into effect before Christmas is important because it is all right for me to say what I want to do. I have to be judged by what I do.
“And what I’m doing is cutting taxes on millions of the lowest-paid people in our society, quite significantly at a time when I think it’s going to make a real difference.
“And that should give people the confidence they need to know that when I said my goal is to cut taxes over the course of this Parliament, I mean it – and I’m already making it happen.” to make.’
The Chancellor told broadcasters this morning: “On the budget I said my goal was to cut taxes in particular so that working people could keep more of their hard-earned money and today we are taking the first step to deliver on that promise.” reduced significantly to the Universal Credit taper rate taking effect today.
“This tax cut will benefit millions of the lowest paid people in our society … and on average these families will be better off about £1,000 a year.”
The Universal Credit change means a couple with two children, who rent their home while one partner works full time and the other works 16 hours a week, will be better off £1,800 a year.
The move was intended to cushion the blow of the withdrawal of the £20-per-week increase introduced during the coronavirus pandemic.
Campaigners have warned, however, that the change won’t offset the removal of the raise — or do anything to help those out of work.
Katie Schmuecker, Deputy Director of Policy & Partnerships at the Joseph Rowntree Foundation said: ‘This is a two-budget story for low-income families.
“For those who work, the change in the cut-off rate and the work allowance, in addition to raising the National Living Wage, are very positive steps, allowing low-paid workers to keep more of what they earn.
“But the reality is that millions of people who can’t work or look for work are not benefiting from these changes.”
Mr Sunak also gave his assessment of the current state of the economy as he said there was ‘a lot to be positive about’ and unemployment has declined over the past eight to nine months despite the disruption caused by the Covid crisis.
The Chancellor’s comments follow him on the presentation of the Politician of the Year award by Spectator magazine – which Prime Minister Boris Johnson once edited.
Sunak speaks onstage as he receives the Politician of the Year award at the Rosewood Hotel in London’s West End
He was one of many all-party MPs at the Rosewood Hotel in London’s West End, which came as the relationship between the resident of No10 and Mr Sunak in No11 was the subject of much debate amid rumors that their relationship has deteriorated. .
The Times reported that Mr Sunak became increasingly frustrated with the “chaotic” operation in No. 10.
The paper said the Chancellor’s Chief of Staff, Liam Booth-Smith, was blamed for informing there was “a lot of concern in the building” about Mr Johnson.
The prime minister’s official spokesman insisted that the teams in Nos. 10 and No. 11, where the Chancellor is based, “continue to work very well together at all levels.”