Another Tory blunder: Sunak tax cuts have low impact on growth, Treasury told
The revelations will undermine the Tory government’s claim that tax cuts are the way to turn around the economy
Treasury officials warned Rishi Sunak in late 2022 that tax cuts would have a ‘low impact’ on boosting economic growth, and yet despite this advice, Chancellor Jeremy Hunt and the Tory government continue to prioritise tax cuts in a bid to boost the economy.
Treasury documents seen by Bloomberg reveal that incoming Prime Minister Sunak was told that ‘increasing high-skilled immigration and changing planning rules to build more homes would both have a “high impact” on the economy with a “low” fiscal cost.”
The revelations will undermine the Tory government’s claim that tax cuts are the way to turn around the economy, with Hunt planning tax cuts in the annual budget in March. Despite the advice of experts, Sunak and Hunt are placing tax cuts at the heart of the Tory election campaign.
…
