London Daily

Focus on the big picture.
Wednesday, Sep 30, 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
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
Scottish Government Proposes Replacing 32 Councils With Larger Regional Authorities
Ofgem Raises UK Household Energy Price Cap by 4% From October
UK Counter-Terrorism Police Continue Investigation After Five Arrests Near RAF Fairford
OECD Cuts UK 2027 Growth Forecast to 1%
Labour Says State Pension Triple Lock Remains Protected Through Current Parliament
Andy Burnham Pledges National Care Service With Free Social Care in England
Six Flags Permanently Shuts Landmark X2 Roller Coaster Following Safety Scandals
Metropolitan Police Rule Out Terrorism in Golders Green Stabbing Investigation
Lithium-Ion Battery Identified as Cause of Fatal Merseyside House Fire
UK Department Rejects New Sea Use Framework Due to Stakeholder Fatigue
Major Thames Water Pipe Burst Causes School Closures in London
Aldi Commits £900 Million to Expand UK Supermarket Network
Scottish Affairs Committee Warns Skills Shortages Threaten Defence Sector Expansion
Parliamentary Committee Warns Northern Ireland Budget Deadlock is Stalling Economic Growth
NHS Hospitals in England Face Severe Shortages of Essential Medications
Home Secretary Signals Major Overhaul of UK Immigration and Leave to Remain Policies
Chancellor Promises New Job Schemes Alongside Strict Fiscal Discipline
Energy Secretary Proposes Taxpayer-Funded Green Transition and National Electricity Grid
UK Government to Renationalise Avanti West Coast Railway Franchise in March
Prime Minister Andy Burnham Pledges Major Social Care and Infrastructure Reforms
Five Suspects Released on Bail Following Alleged Bomb Plot Near RAF Fairford
UK Diesel Prices Hit Record High of 199p Per Litre
Transport for Wales and Network Rail Complete Electrification of South Wales Metro
Defra Expands Incentives for Sustainable Farming and Biodiversity in England
Northern Ireland Executive Approves Funding Package to Resolve Public Sector Pay Disputes
Universities UK Warns of Financial Insolvency Risks for Higher Education Institutions
UK Prisons Activate Emergency Protocols to Manage Capacity Pressures
UK Government Establishes New Safety Standards for Frontier AI Models
Home Office Tightens Skilled Worker Visa Requirements and Dependent Rules
Ministry of Defence Restructures Royal Navy Frigate Procurement to Prevent Overruns
UK Government Mandates New Housing Targets to Address National Shortage
UK and Scottish Governments Reach Agreement on North Sea Energy Transition
NHS Launches Digital Overhaul to Reduce Surgical Backlogs in England
Bank of England Holds Interest Rates as Service Sector Inflation Persists
UK Chancellor Announces Fiscal Consolidation Measures to Stabilize National Debt
RNLI Chief Executive Condemns Misinformation and Abuse Targeting Volunteer Crews
Metropolitan Police Charge Swindon Man with Assisting Foreign Intelligence Services
British Intelligence Report Warns Environmental Collapse Threatens Global Defense Infrastructure
Conservative Party Rejects New Taxes to Fund UK Social Care Reforms
Labour Government Signals Intent to Ease Residency Restrictions for Foreign Care Workers
Prime Minister Andy Burnham and Norwegian Prime Minister Jonas Støre Meet to Strengthen North Atlantic Defense
UK Government Plans to Revive Equity Loan Scheme to Assist First-Time Home Buyers
Prime Minister Andy Burnham Pledges Radical Reform for UK Utilities and Social Care
UK Treasury Prepares Difficult Autumn Budget Amid High Debt and Energy Volatility
Civil Aviation Authority Launches Review of Air Traffic Systems Following Digital Failure
X Reports First Increase in UK Revenues Following Advertiser Boycott
Shetland Islands Council Approves £400 Million Inter-Island Tunnel Project
Foreign Secretary Ed Miliband Warns Iran Against Hostile Activities on British Soil
×