London Daily

Focus on the big picture.
Wednesday, Nov 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
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
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
×