Tax cuts are important, but we need broader economic reform

My plans for our economy are threefold.

First, sound money. I will never mortgage the future of our children. My main fiscal rule will be that debt as a percentage of GDP should decline over time. The UK’s economic credibility around the world will be bolstered by sound finances, as we seize the many post-Brexit opportunities.

Second, to help families with the cost of living. I have to tell people that our economy is facing the twin problems of runaway inflation and falling confidence – with a real risk of a recession to come. My government will focus on controlling inflation, working closely with the independent Bank of England. We cannot take the risk of a spiral of wages and prices which would lead to a fall in the standard of living and the loss of jobs.

Targeted tax cuts to help families are important, and I have already announced my intention to reduce VAT at the fuel pump by 50% until at least April 2023 – paid for by increased VAT revenue resulting from inflation. I will also commit now to raising the basic and middle income tax thresholds in line with inflation, to allow families to keep more of their hard-earned money.

These are the targeted and paid measures based on the cost of living that we need. We need to support families struggling with the cost of basic necessities. Beyond tax cuts, it is also right that we look at tax simplification, in order to reduce the bureaucratic burden on taxpayers.

Tax cuts are welcome, but they must be accompanied by an economic reform agenda, with a critical focus on competition.

At the same time, I will focus our work on what I call the “four Is” – that is, investment, infrastructure, incentives and innovation. I strongly believe that improving lives requires a growing economy and that is where I intend to focus.

By focusing on the future of the economy and the four I’s, we can capitalize on the UK’s potential as a high-growth engine of science, technology and innovation, which can attract investments, unlocking growth and modernizing our economy, which we urgently need to do. need.

This means accelerating projects and releasing our great mayors like Ben Houchen and Andy Street, and other local leaders. That’s why, as Prime Minister, I want to build on the success of projects such as development corporations, to give all our mayors and local authorities additional powers to raise billions of pounds. We want every part of the UK to reach its potential, and initiatives like this will drive economic growth and create thousands of jobs.

It will also give us a huge boost for our plans to reach net zero, where we believe up to three million green jobs could be generated by 2030, creating apprenticeships, new jobs and opportunities. training across the UK.

About Nancy Owens

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