Rishi Sunak vows to cut taxes for business to tackle cost of living crisis | Rishi Sunak

Rishi Sunak has vowed he will cut taxes for business in the autumn budget, as the Treasury weighs up interventions to tackle the cost of living.

The chancellor will make a speech at the CBI dinner that comes after UK inflation soared to 9% – the highest level for more than 40 years. The jump has been fueled by the rising cost of gas and electricity, which has pushed household energy bills to record levels.

During the speech on Wednesday night, he will urge investment in innovation to grow the economy and say the government will cut taxes to enable business to do so.

“We need you to invest more, train more and innovate more,” the chancellor will say. “In the autumn budget we will cut your taxes to encourage you to do all those things. That is the path to higher productivity, higher living standards and a more prosperous and secure future. “

The chancellor is expected to say that the government will act to tackle inflation as well as supporting people into better paid jobs, setting out a three-point plan on the cost of living, boosting growth and investment.

Options under consideration include a 1p income tax cut from the autumn or a potential VAT cut, but new measures to help with the cost-of-living could come sooner, including an increase in the warm homes discount for the poorest families.

In his speech, Sunak will say he sees the government’s key role as cutting costs for families. “I cannot pretend this will be easy. As I told the House of Commons yesterday: there is no measure any government could take, no law we could pass, that can make these global forces disappear overnight. The next few months will be tough, ”he will say.

Sunak is expected to reference the fuel duty cut, council tax discounts and the change to the universal credit taper rate as well as the national minimum wage increase as measures the government has already taken.

“As the situation evolves our response will evolve. I have always been clear, we stand ready to do more, ”he will say.

The Treasury said the comments would flesh out pledges in Sunak’s Mais lecture, where he said the priority for tax cuts would be on business investment. He said the overall tax treatment of capital investment was much less generous than the OECD average.

“It is unclear that cutting the headline corporation tax rate did lead to a step change in business investment; we need our future tax policy to be targeted and strategic, ”he said at the lecture. “So as I develop a business tax strategy for the years ahead, it seems likely to me that a priority will be to cut taxes on business investment.”

Last year the government announced its intention to increase the headline rate of corporation tax, the tax businesses pay on their profits. That is scheduled to rise to 25% for company profits over £ 250,000 from April 2023 – though it was announced alongside investment incentives.

Tory MPs are expected on Wednesday to vote down a Labor amendment to the Queen’s speech, which calls for an emergency budget to tackle the cost-of-living crisis.

The shadow chancellor, said it was “unconscionable” that the government was piling taxes on working people in the middle of a crisis and repeated calls for a windfall tax on oil and gas producers to help with energy bills.

“Today’s inflation data will add to the worries families already face as prices soar and pay packets are crunched,” said Rachel Reeves.

MPs told the Commons on Tuesday that some of their constituents were turning to shoplifting for essentials, while another warned that he had heard of cases of attempted suicide among those who could not afford to make ends meet.

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