Sajid Javid reveals his plans to reduce income tax basic rate by 2p in the next Budget as well as cuts to stamp duty and relief for capital investment
Sajid Javid said he planned a tax cutting plan which included a stamp duty cut The former chancellor resigned during the cabinet reshuffle earlier this month His remarks will pressure his replacement Rishi Sunak to bring in similar policies
Sajid Javid planned to reduce the basic rate of income tax by 2p in the next budget, he has revealed.
The former chancellor said he planned a tax cutting programme which also included a reduction to stamp duty and relief for capital investment.
Mr Javid resigned during the cabinet reshuffle earlier this month before firing a parting shot at Prime Minister Boris Johnson’s chief aide, Dominic Cummings.
His radical plan, disclosed in an interview with The Times, would have seen the first reduction to the basic rate of income tax for 15 years, from 20p to 18p in the pound from April, at an estimated cost of £10billion a year.
Mr Javid, 50, said he intended to send a ‘huge signal for working people’ that the Government was ‘absolutely on their side’ in next month’s Budget.
Sajid Javid planned to reduce the basic rate of income tax by 2p in the next budget, he has revealed
The interview will put pressure on his replacement, former Treasury minister Rishi Sunak, to include similar tax cutting policies in his own budget, expected on March 11.
Basic rate tax is levied on incomes between £12,501 and £50,000. Some 26 million of the UK’s 31 million taxpayers fall in to this bracket.
The tax cut would have been worth up to £750 a year, with those in the higher tax rates benefiting the most.
Mr Sunak has already faced pressure to scrap reported plans to hike fuel tax in the budget, which would end the ten-year freeze on fuel duty.
In a pointed resignation speech in the House of Commons on Wednesday, Mr Javid criticised the growing influence of Boris Johnson’s senior adviser Dominic Cummings and the danger of higher taxes.
Mr Javid warned that the merging of Treasury and No10 teams ordered by Mr Cummings would stifle debate and was ‘not in the national interest’.