London Daily

Focus on the big picture.
Monday, Dec 22, 2025

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
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
Women in Partial Nudity — and Bill Clinton in a Dress and Heels: The Images Revealed in the “Epstein Files”
US Envoy Witkoff to Convene Security Advisers from Ukraine, UK, France and Germany in Miami as Peace Efforts Intensify
UK Retailers Report Sharp Pre-Christmas Sales Decline and Weak Outlook, CBI Survey Shows
UK Government Rejects Use of Frozen Russian Assets to Fund Aid for Ukraine
UK Financial Conduct Authority Opens Formal Investigation into WH Smith After Accounting Errors
UK Issues Final Ultimatum to Roman Abramovich Over £2.5bn Chelsea Sale Funds for Ukraine
Rare Pink Fog Sweeps Across Parts of the UK as Met Office Warns of Poor Visibility
UK Police Pledge ‘More Assertive’ Enforcement to Tackle Antisemitism at Protests
UK Police Warn They Will Arrest Protesters Chanting ‘Globalise the Intifada’
Trump Files $10 Billion Defamation Lawsuit Against BBC as Broadcaster Pledges Legal Defence
UK Says U.S. Tech Deal Talks Still Active Despite Washington’s Suspension of Prosperity Pact
UK Mortgage Rules to Give Greater Flexibility to Borrowers With Irregular Incomes
UK Treasury Moves to Position Britain as Leading Global Hub for Crypto Firms
U.S. Freezes £31 Billion Tech Prosperity Deal With Britain Amid Trade Dispute
Prince Harry and Meghan’s Potential UK Return Gains New Momentum Amid Security Review and Royal Dialogue
Zelensky Opens High-Stakes Peace Talks in Berlin with Trump Envoy and European Leaders
Historical Reflections on Press Freedom Emerge Amid Debate Over Trump’s Media Policies
UK Boosts Protection for Jewish Communities After Sydney Hanukkah Attack
UK Government Declines to Comment After ICC Prosecutor Alleges Britain Threatened to Defund Court Over Israel Arrest Warrant
Apple Shutters All Retail Stores in the United Kingdom Under New National COVID-19 Lockdown
US–UK Technology Partnership Strains as Key Trade Disagreements Emerge
UK Police Confirm No Further Action Over Allegation That Andrew Asked Bodyguard to Investigate Virginia Giuffre
Giuffre Family Expresses Deep Disappointment as UK Police Decline New Inquiry Into Andrew Mountbatten-Windsor Claims
Transatlantic Trade Ambitions Hit a Snag as UK–US Deal Faces Emerging Challenges
Ex-ICC Prosecutor Alleges UK Threatened to Withdraw Funding Over Netanyahu Arrest Warrant Bid
UK Disciplinary Tribunal Clears Carter-Ruck Lawyer of Misconduct in OneCoin Case
‘Pink Ladies’ Emerge as Prominent Face of UK Anti-Immigration Protests
Nigel Farage Says Reform UK Has Become Britain’s Largest Party as Labour Membership Falls Sharply
Google DeepMind and UK Government Launch First Automated AI Lab to Accelerate Scientific Discovery
UK Economy Falters Ahead of Budget as Growth Contracts and Confidence Wanes
Australia Approves Increased Foreign Stake in Strategic Defence Shipbuilder
Former UK Prime Minister Boris Johnson proclaims, “For Ukraine, surrendering their land would be a nightmare.”
Microsoft Challenges £2.1 Billion UK Cloud Licensing Lawsuit at Competition Tribunal
Fake Doctor in Uttar Pradesh Accused of Killing Woman After Performing YouTube-Based Surgery
Hackers Are Hiding Malware in Open-Source Tools and IDE Extensions
Traveling to USA? Homeland Security moving toward requiring foreign travelers to share social media history
UK Officials Push Back at Trump Saying European Leaders ‘Talk Too Much’ About Ukraine
UK Warns of Escalating Cyber Assault Linked to Putin’s State-Backed Operations
UK Consumer Spending Falters in November as Households Hold Back Ahead of Budget
UK Orders Fresh Review of Prince Harry’s Security Status After Formal Request
U.S. Authorises Nvidia to Sell H200 AI Chips to China Under Security Controls
Trump in Direct Assault: European Leaders Are Weak, Immigration a Disaster. Russia Is Strong and Big — and Will Win
"App recommendation" or disguised advertisement? ChatGPT Premium users are furious
×