London Daily

Focus on the big picture.
Friday, Sep 04, 2026

Javid denies Truss tax cuts plan will lead to increased borrowing

Javid denies Truss tax cuts plan will lead to increased borrowing

Latest high-profile backer of Tory leadership candidate says proposals ‘risky’ but not inflationary
Swingeing tax cuts pledged by Liz Truss will not lead to dramatically increased government borrowing or fuel inflation, her latest high-profile supporter, Sajid Javid, has claimed, in response to accusations the Conservative leadership frontrunner’s “dangerous” plans would exacerbate the cost of living crisis.

Taking aim at Rishi Sunak, Javid, his former Treasury protege, hit out at the ex-chancellor’s “business-as-usual” approach and added: “We can’t rely on increasing taxes again and again.”

Nearly a month to the day since the pair’s sensational resignation led to the downfall of Boris Johnson, Javid declined to endorse Sunak and instead backed Truss to become prime minister.

He said her immediate tax cut pledges were “risky”, but told Times Radio: “Not cutting taxes now is also risky and I think it’s the riskier option. There’s no risk-free option here and any leader has to grip this and come up with the right policy and I think that’s what Liz is offering.”

Having launched a failed attempt to be leader himself after quitting as health secretary last month, Javid became the latest in a trickle of MPs to jump on to Truss’s campaign.

He told Times Radio that Office for Budget Responsibility forecasts had about £31bn of “fiscal headroom” by 2024/25, “so that’s the first thing you can use to make tax cuts now”.

Not going ahead with a planned increase in corporation tax from 19% to 25% in April wouldn’t affect inflation figures, Javid said.

“It is not inflationary to not go ahead with a tax increase,” he said. “I don’t buy this argument that the things Liz is proposing, somehow they are all going to lead to higher inflation. In the long term they are going to help to fix the economy and that is the most important thing.”

A similar argument was made by the attorney general, Suella Braverman, also a Truss supporter, who said on Thursday: “We can’t afford not to cut taxes.”

It came hours before the Bank of England was expected to raise interest rates by half a percentage point – the biggest increase since 1995. The energy price cap will also be changed quarterly instead of every six months, Ofgem announced on Thursday.

Truss’s plans were called dangerous by Mel Stride, a Sunak supporter who chairs the Commons Treasury committee, given the economic outlook this autumn.

“What we must do now is avoid stoking the inflation and making the problem even worse,” Stride told BBC Radio 4’s Today programme. “One of the ways you can make the problem very significantly worse is by coming forward with large-scale, tens of billions of pounds’ worth, of unfunded tax cuts.”

He added: “The big decision, fiscally, here is around tax. You have to do it in a measured way and at the right time but not start coming forward with tens of billions of unfunded tax cuts right now.

“I think that would be really quite dangerous.”

Despite Sunak trailing by up to 30 points in polls of Conservative members, who have a month to vote in the leadership election, Stride said his candidate would “absolutely not” concede and claimed there was a “huge disconnect” between survey results and his experience.

Two Thatcher-era cabinet ministers also described Truss’s immediate tax cuts as reckless, and said the former prime minister would have been more welcoming of Sunak’s plan to wait until inflation was settled.

The final TV debate will be hosted at 8pm on Thursday night by Sky News, although the candidates will not go head-to-head. Instead they will separately face questions from a studio audience of Tory members followed by a one-on-one interview with Kay Burley.

Truss said at a hustings in Cardiff on Wednesday night that she wished the debates between the two leadership finalists had been conducted more privately and not so much in the public eye.
Newsletter

Related Articles

0:00
0:00
Close
Scottish Tech Company PureLifi Enters Administration With More Than 40 Job Losses
Scottish Government Names Alyn Smith Innovation and Education Minister
Green Party Co-Leader Zack Polanski to Contest By-Election for Keir Starmer’s Former Seat
Palestine Action Activists Appeal Terrorism-Related Prison Sentences
PwC Report Highlights Persistent Regional Spending-Power Divide Across Britain
UK Names Hundreds of Employers for Minimum Wage Violations
UK Commits £400 Million to International Tropical Forest Fund
UK Extends £2 Bus Fare Cap Across England Through 2027
UK Warns Travellers as US-Iran Tensions Disrupt Middle East Security and Shipping
Andy Burnham Faces Kemi Badenoch in First Prime Minister’s Questions
Kemi Badenoch Names Andrew Griffith Shadow Chancellor in Conservative Reshuffle
UK Treasury and Markets Focus on Fiscal Headroom Ahead of Autumn Budget
UK Government Reverses Early Release Plans for Serious Violent and Sexual Offences
UK and France Review Border Cooperation After 48,000 Small-Boat Crossings Prevented
UK Growth Outlook Weakens as Inflation and Energy Costs Rise
Breeding Tropical Mosquitoes Discovered in East London
Sadiq Khan Agrees to Search of Digital Communications in Palantir Lawsuit
Scottish Protesters Call for Moratorium on AI Data Centre Expansion
Uber Drivers Bring London Class Action Over Algorithmic Management
Reform UK Accepts £4 Million Donation From Cryptocurrency Billionaire Pardoned by Trump
Justice Secretary Tightens Early Release Scheme to Exclude Manslaughter Offenders
Kemi Badenoch Reshuffles Conservative Team as Reform UK Pressure Grows
British Mortgage Rates Rise as Global Bond Sell-Off Pushes Up Borrowing Costs
UK Records Hottest Summer on Record in 2026
UK Government Urges Households to Stock Essential Supplies Ahead of Severe El Niño Risk
UK Prepares Targeted Sanctions Over Israeli Settlements in West Bank
Reform UK Faces Electoral and Police Scrutiny Over Foreign Donation Allegations
UK and France Expand Channel Migration Cooperation as Trade Tensions Surface
UK Marks Merchant Navy Day With Tribute to Civilian Seafarers
Burnham Pays Tribute to Two Police Officers Killed on Duty in Northern England
Booking.com Left Fake Downing Street Listing Online for Two Months, Which Says
Burnham and Macron to Review UK-France Cooperation on Channel Crossings
UK Business Confidence Improves Slightly but Investment Concerns Persist
Burnham Faces Pressure Over Future North Sea Oil and Gas Licences
Burnham Pushes Wider English Devolution Through ‘Number Ten North’
British Chambers of Commerce Raises 2026 UK Growth Forecast to 1%
Keir Starmer Resigns as Holborn and St Pancras MP, Triggering By-Election
UK Chancellor Faces Tighter Budget Headroom as Long-Term Borrowing Costs Rise
UK Government Weighs Thames Water Nationalisation as Financial Crisis Deepens
Prime Minister Andy Burnham Faces First Commons Questions Over Tax and Spending Plans
Eleven British Seafarers Receive Merchant Navy Medal
Which? Creates Fake 10 Downing Street Rental Listing to Expose Booking.com Vetting Weaknesses
BP Appoints New Chairman in Effort to Stabilise Leadership
Aberdeen Sells Hydrogen Bus Fleet at Heavy Loss After Green Transport Experiment
UK Records Hottest Summer on Record as Climate Change Intensifies Extreme Heat
Scotland Pledges to End Temporary Accommodation for Children and Build 111,000 Affordable Homes
DNO Agrees $396 Million Deal to Acquire Capricorn Energy
Uber and Wayve Launch UK’s First Supervised Autonomous Ride-Hailing Service in London
Britain Expected to Avoid New US Tariffs Targeting European Union
Middle East Conflict Pushes UK Energy Costs Higher and Revives Inflation Concerns
×