London Daily

Focus on the big picture.
Monday, Jul 20, 2026

Business secretary plays down prospect of major tax rises in budget

Business secretary plays down prospect of major tax rises in budget

Kwasi Kwarteng says emphasis now is on trying to provide critical support rather than reducing deficit
The business secretary, Kwasi Kwarteng, has played down the prospect of significant tax increases to start reducing the deficit in the public finances in Wednesday’s budget.

While the chancellor, Rishi Sunak, has said the country cannot not “go on spending money for ever”, Kwarteng said the priority for now was to support the economy.

“For now, what we have to do is support businesses, individuals, families, through what has been an extremely difficult time,” he told BBC Breakfast. “We have got another three years to run in the parliament and the chancellor will be looking to reduce the deficit. For now, I think the real emphasis is on trying to provide critical support.”

The chancellor is said to be considering raising corporation tax to as much as 25% from 19%. Kwarteng told BBC Breakfast that Sunak had “already indicated” that he would be extending the furlough scheme.

On Monday, the former Tory leader William Hague said taxes would “have to go up”. Writing in the Daily Telegraph, he said: “It pains me to say, after spending much of my life arguing for lower taxes, that we have reached the point where at least some business and personal taxes have to go up.” He added that those who opposed some form of tax rises in the current climate were buying into “dangerous illusions”.

Asked about whether he thought there would be higher taxes on companies that had “done well” out of the pandemic, Kwarteng said: “I am a Conservative, and I’ve always been a low-tax Conservative. I think that the best way to grow an economy, generally, is to promote enterprise, small business and larger businesses as well, but at a time like this, our focus has been on trying to keep things going and providing vital support to families and businesses, at a very difficult time.”

He told the BBC Radio 4’s Today programme he was sure in the future there would be a “debate about the right level of taxation”, but for now the focus was on providing support.

Kwarteng would not be drawn on whether businesses could expect an extension of the business rates holiday, saying only: “I think there will be continued support. I think that will be perhaps an extension of the VAT holiday.”

It comes as Sunak is expected to provide more than £400m of additional support for the culture sector to help museums, theatres and galleries in England to reopen once coronavirus restrictions start to ease in the coming months.

Sunak is expected to put an extra £300m into the £1.57bn culture recovery fund as part of the measures.

In teasers before the budget, Treasury officials also said Sunak was preparing to give a “significant chunk” of a £300m sports recovery package to help cricket fans return to stadiums this summer.

He will also announce a £150m community ownership fund to allow pubgoers to bid for up to £250,000 to save their favourite local.

National museums and cultural bodies will also receive £90m to help keep them going until they can open their doors on 17 May at the earliest. Another £18.8m will be provided for community cultural projects, while an additional £77m will be given to the devolved administrations in Scotland, Wales and Northern Ireland to provide their culture sectors with similar support.

Sunak said: “This industry is a significant driver of economic activity, employing more than 700,000 people in jobs across the UK, and I am committed to ensuring the arts are equipped to captivate audiences in the months and years to come.”
Newsletter

Related Articles

0:00
0:00
Close
London’s Housing Starts Collapse as Planning and Building Costs Stall Development
Charlie Sheen’s Daughter: "My Dad Didn’t Buy Me a House, My Breasts Bought It"
Vivienne Westwood Casts Cicciolina, 74, in Its New Autumn Campaign
Dejavu: Germany’s Military Expansion Reshapes Europe’s Strategic Balance With France
Jingye Demands Full Compensation After Britain illegally Nationalized British Steel
Just Another Liar or a Robin Hood? Andy Burnham Pledges Cost-of-Living Help in First Speech as UK Prime Minister
Morgan Stanley Builds a Wall Street Lead in AI Infrastructure Finance
High Prices Push Coffee Drinkers Toward Whole Beans and Home Brewing
Trump Draws Boos and Podium Scrutiny at Spain’s World Cup Triumph
Brilliant move: Péter Magyar Moves to Nominate Chess Grandmaster Judit Polgár as Hungary’s President
Spain Defeats Argentina in Extra Time to Win Second World Cup
Police Block Cockroach Janta Party’s March to Parliament as Education Protests Intensify
Current AI Seeks to Build an Open Global AI Infrastructure Outside Big Tech Control
Turkey Explores S-400 Transfer to UAE in Bid to Rejoin F-35 Program
Josh Kerr Breaks Twenty-Seven-Year World Mile Record at London Diamond League
Thames Water Crisis Deepens as South East Water Outages Hit Thousands in Kent
EU Ban on Destroying Unsold Clothing Forces British Fashion Brands to Change Operations
UK Government Confirms Existing North Sea Oil and Gas Licences Will Be Honoured
UK Covid Inquiry Finds Nearly Ten Billion Pounds Lost in Pandemic Protective Equipment Procurement
Thames Water Moves Toward Possible Temporary Nationalisation Amid Rescue Plan Dispute
Andy Burnham Cancels One Point Eight Billion Pound Digital ID Programme After Taking Office
UK Government Takes British Steel Into Full Public Ownership to Protect Jobs and Supply Chains
Andy Burnham Becomes UK Prime Minister and Pledges Focus on Living Costs and Public Services
Germany’s Economic Malaise Reopens the Sunday Shopping Debate
Singapore Considers Lower Taxes for Fund Managers as Hong Kong Intensifies Talent Contest
US Retaliates Against Iran After Two American Troops Killed in Jordan
Bank of Asia BVI Enters Court-Supervised Liquidation After Regulators Find It Insolvent
Proposed U.S.-Saudi Nuclear Pact Could Permit Limited Uranium Enrichment Under International Safeguards
Netherlands Declares Water Shortage Emergency After Drought Pushes Rivers to Historic Lows
Why Kentucky Fried Chicken Became KFC—and Why the False Explanations Persist
Iran Claims It Destroyed Bahrain’s Main Artificial Intelligence Center in Missile and Drone Strike
Ukrainian Drones Strike Wildberries Warehouses Deep Inside Russia
Brothers Andrew and Tristan Tate Who Turned "Toxic Masculinity" Into a Brand Arrested in Miami as Britain Seeks Their Extradition
Reported CIA Mission Helped Clear the UAE’s Path to Advanced US AI Chips
Artificial Intelligence Capital Fuels Markets While Governments and Regulators Face Mounting Strategic Tests
China’s Moonshot’s Kimi K3 Narrows the Gap With Anthropic Through Scale, Openness and Lower Cost
Gold and Cash Seizure Puts Indonesia’s Senior Anti-Corruption Prosecutor Under Investigation
The Ledger Will Not Trust on Faith
Bank of England Warns Climate Shocks Could Trigger Sudden Asset Repricing
UK Treasury Places Microsoft, Google, AWS and Oracle Under New Financial Resilience Rules
Scottish Government Faces Pressure Over Delays in Vulnerable Group Background Checks
Crown Prosecution Service Authorises Additional Charges Against Andrew and Tristan Tate
NHS Approves At-Home Cancer Treatments for Rare Blood Disorders
Bank of England Gains Oversight of Major Cloud Providers Supporting UK Financial System
UK Government Plans Major Overhaul of English Local Councils Through New Unitary Authorities
British Steel Nationalisation Dispute Escalates as Chinese Owner Jingye Seeks Compensation
Bank of England Signals Interest Rates Will Stay High as It Warns of Financial Risks From Climate and AI
Trump Administration Pressures Banks to Restrict Financial Access for Undocumented Immigrants
Passenger Bound for Germany Refused to Sit Beside a Woman on a Plane — Then Slapped a Flight Attendant
Ukraine’s Leadership Rift Spills Into the Streets as Protesters Target Army Chief
×