His own government’s demands for tax cuts before elections scheduled for 2024 are putting pressure on British Prime Minister Rishi Sunak. “I want to see the tax burden reduced before the next election,” influential Housing, Communities and Local Government Secretary Michael Gove told Sky News today. Workers should be at the center of such a reduction, he added.
With his Conservatives far behind the opposition Labor Party in opinion polls, Sunak is under pressure. Speaking to the BBC just minutes after Gove’s call, Sunak reiterated his position that “the best tax cut we can give working people is to halve inflation”.
“Inflation makes people feel poorer”
Many experts assume that the inflation rate could fall to around five percent by the end of the year – about half the level in January. “Inflation is making people feel poorer,” Sunak said. “The faster we reduce inflation, the better it will be. That’s why it’s the right priority and we’re making good progress.”
Other members of Sunak’s party are also pushing for tax cuts. According to the non-partisan Institute for Fiscal Studies, tax receipts are expected to represent 37% of annual economic output by the time of the next election – the highest proportion in Britain since at least the 1950s.
Sunak’s predecessor, Liz Truss, yesterday signed a letter saying she would not “support new taxes that increase the overall tax burden”.
A new survey from research firm Opinium shows that the Labor Party’s lead has shrunk to the narrowest margin since Sunak became prime minister a year ago. However, it remains in double digits.