London Daily

Focus on the big picture.
Tuesday, Jan 06, 2026

Tax plans could decide who leads the Conservatives after Boris Johnson

Tax plans could decide who leads the Conservatives after Boris Johnson

A number of those hoping to lead the Conservatives are eyeing tax cuts to increase their appeal to the party faithful.

Tax policy is shaping up to be a deciding issue among the Tory leadership hopefuls.

Former health secretaries Jeremy Hunt and Sajid Javid, who both announced their candidacy on Saturday, have said they will cut corporation tax.

Both men said that they would scrap current government plans to raise the tax from 19% to 25% and instead reduce it to 15%.

Speaking in the Telegraph, Mr Hunt said he would:

• Cut the corporation tax rate in his first autumn budget

• Remove business rates for five years for communities most in need

• Keep the national insurance increase in place because "the NHS needs the money"

He said: "I would love to see income tax cut, but it has to be done in a way that is sustainable.

"It can't be an electoral bribe and it depends on growth. What you'd need is an income tax cut that is for life, not for Christmas.

"That means starting by saying we're going to get the economy growing, then you get yourself in a position."

In the same newspaper, Mr Javid promised to:

• Axe the national insurance hike, which came into force during his time as health secretary to fund the NHS and social care.

• Cut corporation tax by 1 percentage point a year until it reaches 15%

• Bring forward a planned 1p income tax cut to next year

• Bring in a "significant" temporary reduction in fuel duty

Mr Javid said: "The government can't prevent the impact of high price rises on everyone. You can't mitigate everything.

"The long way out of this, the better way, is to turbo growth.

"I've always believed in free markets, in low taxation, in light regulation, as the conditions that are necessary for growth."

Earlier, Chancellor Nadhim Zahawi, who is also running for the top job, pledged to lower taxes for individuals, families and business.


Others who have announced they want to lead the party include Transport Secretary Grant Shapps, former chancellor Rishi Sunak, Attorney General Suella Braverman, ex-minister Kemi Badenoch and senior Tory Tom Tugendhat.

Mr Sunak, who resigned as chancellor under Boris Johnson last week, is widely regarded as the favourite, but some say his policies while chancellor will limit his appeal in the leadership race.

Former minister Steve Baker, who is supporting Ms Braverman's campaign, told Sky News: "Because of his record as chancellor he now has to double down on the high tax position he's taken.

"The big question is whether taxation at this level is doing more harm than good and I'm afraid I think that it is.

"So, although I've got great admiration for Rishi and he's often said all the right things, he's now doubling down on a very difficult position that I think is quite harmful."

But Sunak supporter Sir Bob Neill said of the former chancellor: "He's a tax cutter and so am I.

"But you've got to cut tax responsibly because otherwise you're going to have to take really massive reductions in public spending - probably more than we can bear at the moment - or borrow more and more, and that's actually just shoving the tax burden onto the next generation."

Newsletter

Related Articles

0:00
0:00
Close
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
×