London Daily

Focus on the big picture.
Tuesday, Nov 03, 2026

Boris Johnson’s hints about tax cuts played down by Treasury

Boris Johnson’s hints about tax cuts played down by Treasury

Apparent disharmony between PM and chancellor on cost of living crisis fuels reshuffle speculation

The Treasury has been forced to dampen speculation of an imminent announcement on the cost of living for a second successive day, after Boris Johnson hinted to Tory MPs that the government was poised to cut taxes.

MPs said the prime minister had gestured at the idea of tax cuts to help struggling households, including at a Downing Street garden party for backbenchers.

Chair of the Northern Research Group, Jake Berry, told Sky News the PM was “showing more than a bit of ankle” to colleagues on tax cuts.

A Treasury source played down the idea, however, suggesting that in his conversations with MPs, Johnson had simply been “echoing the chancellor’s ambition to cut taxes for people”, which Rishi Sunak had set out at his spring statement.

It followed Johnson’s suggestion in the House of Commons on Tuesday that he and Sunak would say more about the cost of living “in the coming days”, which led to speculation of an imminent Treasury statement.

One former minister said Johnson’s comments to colleagues had not seemed fully formed or coordinated with the Treasury, and said it added weight to the prospect that Sunak could be moved at a reshuffle in the summer.

It is understood the chancellor is privately examining options for measures that could be announced before the summer recess, when it has become clearer how much energy regulator Ofgem will allow bills to increase in October – though it is unclear whether these will be substantive enough to satisfy the PM.

Johnson will hold a cabinet meeting in Staffordshire on Thursday in an attempt to underline his government’s mission of levelling up the UK.

Asked about the cost of living on a visit to Finland on Wednesday, he said: “We will have the maximum energy, effort and ingenuity to help the British people. You know the money we’re already spending. Of course there will be more support in the months ahead, as things continue to be tough with the increase in energy prices.”

One person with knowledge of the Treasury’s thinking said: “The chance of doing something sooner rather than later is on the up.” They suggested a temporary VAT cut was unlikely, because it would push up inflation whenever it is reversed.

Instead, options could include directly compensating users for the increase in energy bills – particularly if the rise is not as severe as had been feared before recent falls in the wholesale gas price – or extending the council tax rebate many households received in April.

Meanwhile, cabinet ministers have been asked to come up with deregulatory measures that could cut costs for consumers without requiring Sunak to sign off on more spending, with the first of these likely to be announced within days.

Some MPs would like to see the income tax cut Sunak has promised for 2024 brought forward; but with 80% of the benefit going to the top half of earners, it would do little to alleviate poverty.

Calls from MPs from across the Tory party for the government to take a more generous approach have intensified since last week’s disappointing local election results.

“The pressure on Rishi is huge, at the moment,” said former work and pensions secretary Iain Duncan Smith, who has called for universal credit to be increased to help the lowest paid.

He said the Bank of England’s decision to raise interest rates last week meant the Treasury should loosen the purse strings to prevent the economy sliding into recession.

“You’ve got to keep growth going,” he said. “You have to loosen fiscal policy: the Treasury have got it completely wrong.”

Carlisle MP John Stevenson said he expected the government to do more, particularly for the poorest.

“Help has to be realistic, therefore targeted at the least well off,” he said. “Universal credit is possible, also another look at council tax or the taxes on energy are the sensible options.”

Wycombe MP Steve Baker called for policy changes, including tax cuts and deregulation, to kickstart growth.

“In the short run, I am always going to be worried about too many constituents not being able to eat, or heat their homes: that’s why I wanted to maintain the £20 universal credit uplift,” he said.

“But in the long run, it’s very clear that the welfare state is not going to meet longstanding spending pledges. That’s why the PM must go for growth.”

Michael Gove was criticised on Wednesday for putting on a series of accents, when asked about speculation of a split between Johnson and Sunak.

He said on TV: “It is an example of some commentators chasing their own tails and trying to take a statement that is common-sensical, turning it into a ‘major’ capital letters ‘big news story’.

“When the Treasury quite rightly say ‘calm down’, people instead of recognising that they have overinflated the story in the first place then say: ‘Oh, this is clearly a split.’”

Responding to Gove’s interview, in which at one point he appeared to be imitating a Liverpudlian character played by the comedian Harry Enfield, Angela Rayner, the deputy Labour leader, said: “Is the cost of living crisis just a joke to them? This is not a serious government.”

Newsletter

Related Articles

0:00
0:00
Close
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
Treasury Officials Review Taxation Frameworks and Capital Gains Rules Ahead of Autumn Budget Disclosures
National Health Service Leaders Warn of Winter Capacity Pressures Across Acute Care Facilities
Bank of England Prepares for Key Interest Rate Decision Amid Sticky Inflation and Fiscal Policy Pressures
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
Scottish First Minister John Swinney Announces Major Regional Infrastructure and Green Energy Investment Strategy
National Health Service Leaders Warn of Severe Winter Pressures and Mounting Accident and Emergency Backlogs
Bank of England Monetary Policy Committee Signals Cautious Interest Rate Path Amid Persistent Services Inflation
Chancellor of the Exchequer Rachel Reeves Finalizes Autumn Budget Framework Aiming to Close Public Sector Fiscal Gap
Department for Science, Innovation and Technology Prepares Enhanced Artificial Intelligence Safety and Cyber Defense Frameworks
United Kingdom Government Expands International Sanctions Framework Against Russian Shadow Fleet and Financial Enablers
Institute of Directors Reports Sharp Post-Budget Drop in Business Confidence Despite Long-Term Investment Intention Shifts
Chancellor John Healey Defends Sweeping Fiscal Adjustments and Household Support Packages Following Autumn Budget
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
Loughborough University Economic Analysts Highlight Substantial Uncertainty Surrounding Public Sector Efficiency Savings
British Legal Sector Drives Sixty Billion Pounds in Annual Economic Output While Employing Over Half a Million Professionals
Law Society Welcomes New Better Regulation Executive While Pressing for Long-Term Legal Aid Funding Reform
Metropolitan Police and Security Services Heighten Operations Across London Ahead of Large-Scale Public Demonstrations
Bank of England Economists Scrutinize Corporate Tax Adjustments and Public Sector Borrowing Pressures
Chancellor John Healey Defends Autumn Budget Tax and Spending Allocations Following Intense Parliamentary Scrutiny
Department for Environment, Food and Rural Affairs Implements Strict Water Quality Monitoring Rules Following Severe Rainfall and Flooding
Welsh Government Unveils Comprehensive Regional Housing Strategy to Address Rural Affordability and Homelessness Pressures in Cardiff
Office for National Statistics Reports Slowing Consumer Price Inflation and Steady Retail Performance Across United Kingdom Markets
×