The UK government will consider tax cuts if it can manage to halve inflation by the end of the year, according to a Tory cabinet minister. Immigration minister Robert Jenrick confirmed that the Prime Minister’s priorities were in the right place despite disappointment within the party after two heavy by-election losses. Whilst there is some disquiet among Tory MPs, especially those that are advocating for tax cuts to maintain support, Jenrick told disheartened MPs that they “shouldn’t read too much” into the by-election defeats.
Jenrick told the Sunday with Laura Kuenssberg programme that whilst he understood Conservatives and the public “all want to cut taxes”, the first important task for the government was to focus on reducing inflation. Designating inflation as a “great evil”, Jenrick said that “if we can get that under control” then “of course we will consider what more we should do” on taxes. Inflation was at 10.7% in the three-month period between October and December 2022, which means the government aims to reduce inflation to 5.3%.
In January, Chancellor Rishi Sunak confirmed that halving inflation by the end of 2023 was one of the government’s five key priorities. Tax levels in the UK are currently at their highest in 70 years and are unlikely to decrease soon, according to think tank the Institute for Fiscal Studies. The Bank of England has previously suggested that raising interest rates independently is the best way to combat inflation. However, Tory MPs are calling for more government action in relation to easing the financial burden on households ahead of the impending general election.
Following two by-election losses, the Conservative party is looking for ways to maintain support and combat the threat posed by Labour. Some top Tory MPs who suggest that high tax burdens are deterring voters from voting Conservative have proposed reducing corporation tax as a way to shore up support. Meanwhile, the Conservative MP Craig Tracey, who helped run the by-election in Tamworth, said he felt too much focus was on rhetoric rather than action, suggesting that reducing income tax or national insurance could make an immediate impact on voters’ finances
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