Potential Changes to Income Tax, Stamp Duty, or Inheritance Tax May Be on the Table
In a move aimed at regaining traditional Conservative voters, the Government is reportedly considering significant tax cuts ahead of the 2024 general election. Speculation suggests the 40% higher rate income tax threshold could be raised in the upcoming spring budget, as reported by the Daily Telegraph. This change would impact around 5.6 million people, applying to those earning over £50,271, a group largely seen as core Tory supporters.
In addition, The Times reports that Prime Minister Rishi Sunak and Chancellor Jeremy Hunt are exploring potential cuts to stamp duty or inheritance tax. A reduction in stamp duty is viewed as an “aspirational” move, potentially stimulating the housing market and appealing to middle-aged voters who have drifted away from the party.
The contemplation of tax cuts comes in the wake of the Conservative Party’s by-election losses in Tamworth and Mid-Bedfordshire, where Labour achieved significant swings. Speaking during his return from the Middle East, Mr Sunak acknowledged the “disappointing results” but attributed them partly to mid-term challenges for governing parties and local factors. He reiterated his commitment to addressing his five core priorities, which include reducing inflation and curbing small boat crossings across the Channel.
A Downing Street spokesperson declined to comment on tax cut speculation, maintaining that it was inappropriate to comment ahead of any formal fiscal announcements.
