London Daily

Focus on the big picture.
Saturday, Jan 31, 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
China Lifts Sanctions on British MPs and Peers After Starmer Xi Talks in Beijing
Trump Nominates Kevin Warsh as Fed Chair to Reorient U.S. Monetary Policy Toward Pro-Growth Interest Rates
AstraZeneca Announces £11bn China Investment After Scaling Back UK Expansion Plans
Starmer and Xi Forge Warming UK-China Ties in Beijing Amid Strategic Reset
Tech Market Shifts and AI Investment Surge Drive Global Innovation and Layoffs
Markets Jolt as AI Spending, US Policy Shifts, and Global Security Moves Drive New Volatility
U.S. Signals Potential Decertification of Canadian Aircraft as Bilateral Tensions Escalate
Former South Korean First Lady Kim Keon Hee Sentenced to 20 Months for Bribery
Tesla Ends Model S and X Production and Sends $2 Billion to xAI as 2025 Revenue Declines
China Executes 11 Members of the Ming Clan in Cross-Border Scam Case Linked to Myanmar’s Lawkai
Trump Administration Officials Held Talks With Group Advocating Alberta’s Independence
Starmer Signals UK Push for a More ‘Sophisticated’ Relationship With China in Talks With Xi
Shopping Chatbots Move From Advice to Checkout as Walmart Pushes Faster Than Amazon
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
×