Tory MPs urge Jeremy Hunt to slash taxes for couples
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Chancellor Jeremy Hunt was last night urged to cut taxes for couples after his “family-friendly” budget left the UK with the highest tax burden since the Second World War. Supporters of former prime minister Liz Truss want reforms allowing couples to transfer more of their personal tax allowance to each other.
This would effectively cut taxes in households where one partner, such as a full-time parent, doesn’t work or has a low income.
Ranil Jayawardena, environment secretary under Ms Truss and founder of the Trussite Conservative Growth Group, said: “A review of family taxation would be a good next step for the Chancellor.
“We are keen to support the Government with a family tax review to look at ways in which families can have tax burdens reduced, including policies such as transferring personal allowances within a household.”
Tory MPs praised the announcement that free childcare will be expanded to 30 hours a week for children aged over nine months.
But they expressed concern about the tax hikes.
Corporation Tax will rise from 19 percent to 25 percent for firms with profits above £50,000, income tax thresholds have been frozen and taxation is set to reach a post-war high of 37.7 percent of GDP.
Business leaders said they were appalled at the message sent to global investors.
Sir Rocco Forte, chairman of Rocco Forte Hotels, said: “It is bewildering a Conservative Government is intent on implementing such a detrimental policy to businesses and the wider UK economy.”
And John Longworth, chairman of the Independent Business Network, warned: “He has sent a signal to the world that the UK is not open for business by raising Corporation Tax.”
Conservative MPs rallied round the Chancellor but hope taxes will come down one day.
Daniel Kawczynski, MP for Shrewsbury and Atcham, said: “We’re £2.49trillion in debt, with debt interest at £96billion a year.
Everybody demands more but nobody talks about the national debt and how we are going to pay it. Mr Hunt doesn’t have that luxury.”
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