Income tax cut to have been included in planned budget, Sajid Javid says

By Benjamin Cooper, PA
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Income tax cut to have been included in planned budget, Sajid Javid says

An income tax cut and a fleet of electric car-charging stations were just some of the proposals in Sajid Javid’s planned budget, the former chancellor has said.

Mr Javid, who resigned from the Government after a dispute with Prime Minister Boris Johnson, wanted to cut the tax’s basic rate from 20p to 18p from April and had plans to reduce the basic rate to 15p from 2025.

The Bromsgrove MP told The Times that such cuts were a “good thing” as his successor, Rishi Sunak, prepares to deliver his first budget on March 11.

“I passionately believe that where you can afford it tax cuts are a good thing and now that we have a majority, we should be much more aggressive on the tax cuts for the long term . . . and go much further than our manifesto,” he said.

He did not know if Mr Sunak was planning to deliver the income tax cut, but recommended it be done for the sake of “working people”.

Mr Javid had also planned to reduce stamp duty, offer tax relief for those who offered capital for a “radical” tax-cutting programme and had proposed a network of fast-charging stations for electric vehicles.

The interview came after Mr Javid said the Prime Minister’s move to assume greater control over the Treasury was not in the national interest.

The former chancellor used a personal statement in the Commons to spell out why he felt forced to quit the Cabinet after being given an ultimatum to sack all his special advisers in favour of a joint Number 10-Number 11 team.

He told The Times: “Even if I had entertained the idea for a second I would be absolutely humiliated afterwards.”

Downing Street has defended the decision to appoint a joint team of advisers to support the Chancellor.

“The new unit will ensure that the Government works more effectively to deliver the Prime Minister and Chancellor’s shared ambition to level up the economy across the UK,” a Number 10 spokesman said.

The Prime Minister wants No 11 to work more closely with No 10, a demand which led to Sajid Javid’s resignation (Aaron Chown/PA)

During the election campaign Mr Javid committed to run a balanced budget for current spending within three years.

Officials refused to commit to keeping the same fiscal rules Mr Javid had insisted were of critical importance.

Mr Javid refused to comment to The Times on the PM’s senior adviser Dominic Cummings, with whom he repeatedly clashed, and instead focused on Treasury’s relationship with Downing Street.

“In every Government there is a natural tension that will exist between No 10 and No 11 and that’s not about the personalities, it’s there because apart from the Treasury all departments . . . are spending departments,” Mr Javid said.

Mr Sunak became Chancellor after agreeing to the conditions imposed by the Prime Minister earlier this month.