Gov't Weighs Tax Cuts After By-Election Disasters23 Oct 2023 11:54
The suggested tax cuts come after Labour claimed "historic" victories by overturning large Conservative majorities in Thursday's by-elections.
The government could be considering major tax cuts in a bid to win over traditional Tory voters after the two by-election defeats this week.
The threshold for paying the 40% higher rate of income tax could be raised in the 2024 spring budget, according to a report in the Daily Telegraph.
The Times reports the Prime Minister Rishi Sunak and Chancellor Jeremy Hunt are considering cuts to either stamp duty or inheritance tax.
The suggested tax cuts come after Labour claimed "historic" victories by overturning large Conservative majorities in Thursday's by-elections in Tamworth and Mid-Bedfordshire.
The Telegraph report said about 5.6 million people pay the higher rate of income tax which is levied on earnings over £50,271, with Tory strategists believing "many of them vote Conservative and would be boosted by the tax cut".
The Times also suggests a tax cut could be on its way in 2024 ahead of the next general election, with the most likely course being a reduction of stamp duty because it is seen to be "aspirational" as it could "boost the economy by making it cheaper to move" and also appeal to middle-aged voters "who had deserted the party".
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