Jeremy Hunt announces new 'Public Sector Performance Review' who will report back in the fall. Credit: REUTERS/TOBY MELVILLE
Jeremy Hunt has vowed to cut taxes in the future as he launches a massive review of how to make the public sector more productive.
The chancellor said Monday that if government agencies were as efficient as the private sector, it would help the country save money and put it on a “sustainable path to lower taxes.”
The comments came after Boris Johnson's surprise. resigning from parliament on Friday night when he accused Rishi Sunak of deviating from the path of conservatism.
In a 1,000-word statement, the former prime minister demanded that Mr. Sunak “cut business and personal taxes rather than levy them endlessly.”
On Monday, he accused the prime minister of “nonsense” in an argument over his retirement honors list.
Mr. three inevitable by-elections after the resignation of Mr. Johnson and his allies Nadine Dorris and Nigel Adams.
The by-election is likely to put a lot of pressure on him to lay out firm plans to cut taxes. He is said to be considering lowering his income tax before the 2024 general election.
The Telegraph has launched a campaign calling for the abolition of inheritance tax.
0106 The Treasury makes billions from the widely hated death tax. pressure on the Prime Minister, saying she “does not apologize” that the UK should “tax less”.
Speaking at the Center for Policy Studies on Monday, Mr Hunt announced a new “review productivity of the public sector”, which will be presented by autumn.
The chancellor said that the increase in the efficiency of the state will raise living standards and stimulate growth.
“This will mean an increase not only in GDP, but also GDP per capita,” he said.
“This will mean an increase in tax revenue without raising tax rates. And that will put us on a sustainable path to tax cuts.
“The same path was followed by Margaret Thatcher, whose union reforms, privatization and promotion of competition ensured sustainable growth and productivity.”
An overview that will be hosted by John Glen, Chief Secretary of the Treasury, will challenge the public sector on how to do more for less.
He will look at greater use of digital technologies, greater use of artificial intelligence, more efficient use of property and ways to work with the private sector.
The public sector “must challenge itself”
A Treasury source said: “The public sector must challenge ourselves on how we can better evolve and create new delivery models, instead of relying on “a little more”.
Speaking at the same time at the conference as Mr. Hunt earlier in the day, Ms. Mordaunt said she was in favor of “less taxation.”
The leader of the House of Commons also criticized the focus on the culture wars, adding that issues such as social assistance and housing were important.
And that is why I speak without regret about building more and taxing less, rather than talking about culture wars, because it does not move the country forward,” she said.
It happened the day after Sir Ian. Duncan Smith, the former Conservative leader, and Sir John Redwood, a former Conservative cabinet minister, urged the prime minister to lay out proposals for tax cuts to unify the party.
A study released on Monday found that the council's tax payments increased by 79% in real terms in the 30 years since the tax was introduced.
The average D-house now costs over £2,000.
Council Tax Bills
Taxpayers Alliance finds that 244 councils—more than half—have never lowered their council tax rate.
John O'Connell, executive director of the pressure group, said: “Households in every corner of the country have been raising rates year after year.
“Three decades since its introduction, the council tax's steady rise shows no sign of reach their peak.
“Only by cutting wasteful spending and throwing out mindless pet projects can city hall bosses reduce the burden of council tax.”
The average Group D bill when council tax was introduced in 1993 was £568. It has now reached £2,065, a 79% increase when inflation is taken into account.
Nottingham has increased its council tax in monetary terms more than any other local authority in England since 1993, with £630 to £630. 2412. Wandsworth increased its accounts in real terms less than anywhere else, by only one percent.
A spokesman for the Local Government Association said: “In recent years, the government has relied on the powers of municipal councils to collect taxes to increase their basic purchasing power.”
The dispute over taxes is the latest front in the long-standing Tory dispute over how to boost the economy after COVID.
Supporters of Mr Johnson and Liz Truss, his successor as prime minister, say the tax cuts could stimulate the economy. However, Mr. Sunak and Mr. Hunt insist that inflation must first be brought down.
Business leaders have criticized the direction of the government's economic policy, including Sir James Dyson, who earlier this year called the approach Tories are “stupid” and “short-sighted”.
On Friday evening, Mr. accusing the prime minister of losing party credibility.
He said in his Statement: “Our party must urgently regain its sense of momentum and its faith in what this country can do.” set out an agenda for growth and investment.
“Taxes on businesses and individuals should be reduced—and not just as election gimmicks—rather than levying them indefinitely.
“We should not be afraid to be properly Conservative government ”.
He also accused the House of Commons committee investigating his partygate case of being a “kangaroo court” and said he would step down as MP immediately.
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