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Boris Johnson proposes not to reduce taxes until “spiral” inflation is under control

Boris Johnson said his government would not cut taxes until inflation was under control as it came under new pressure to cut the amounts paid by households and businesses.

The prime minister insisted he was cutting taxes “as fast as we could” after Gerard Lyons, who advised him when he was mayor of London, called for a reduction in income tax and corporate tax.

Mr Lyons suggested that recent figures showing the UK’s economic downturn underscored the need for tax incentives.

The Office for National Statistics (ONS) said gross domestic product (GDP), an indicator of the size of the economy, fell 0.3 percent in April after falling 0.1 percent in March.

Mr Lyons, whom Johnson has chosen as his chief economic adviser at City Hall, said: “The economy is losing momentum. Politicians have to deal not only with the crisis of the cost of living, but also with the picture of weakening growth.

“Given these economic conditions, while the direction of monetary policy is tougher, the speed, scale and consistency of this tightening should be sensitive to economic conditions. The slowdown in the economy justifies the weakening of the budget and the argument in favor of a corresponding reduction in taxes.

Mr Johnson told LBC Radio: “We want to make sure we do our best to reduce the burden of taxation.”

The Prime Minister pointed to changes in national insurance thresholds in July, a reduction in the fuel tax by 5 pence and a municipal tax reduction of £ 150 as ways to reduce taxes by the government.

Mr Johnson added: “He will understand that we are cutting taxes as fast as we can, but what we also need to do is take care of people in difficult times.”

Mr Johnson said the country had been hit by an inflation surge, and “what needs to be done right now is to take care of people facing rising cost of living”.

Extending Mr Johnson’s comments, a senior government official said The Telegraph: “The more you spend, the higher the inflation. We must be responsible. We can’t do anything to make it worse. “

Boris Johnson proposes not to reduce taxes until “spiral” inflation is under control

Source link Boris Johnson proposes not to reduce taxes until “spiral” inflation is under control

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