THE CHANCELLOR is coming under mounting pressure from Conservative colleagues to demonstrate government support for “aspiration” by making tax cuts in the upcoming Budget.
Cuts to business taxes such as the “punishing” air passenger duty are required to kick-start the economy, a group of Conservative ministers is warning.
The Free Enterprise group of Tory MPs will today set out its proposals for George Osborne (pictured) to bring in cuts to corporate taxes, while an independent review conducted by Labour will on Tuesday recommend a sharp drop in capital gains tax for long-term investors.
In an article for The Telegraph, Priti Patel, a supporter of the group and member of the Conservative 1922 Committee, called on the chancellor to “wake up” to the damage high taxes are doing. She added an introduction of tax breaks for married couples would help families.
“Our economy is still struggling,” Patel said. “Growth is sluggish, rising living costs mean families have to tighten their belts and the Exchequer is missing out on billions of pounds every year thanks to illegal tax evasion… The truth is that the taxes and regulations themselves are a large part of the problem.”
In previous Budgets under the coalition government, Liberal Democrats have pushed for higher taxes on the wealthy, but most Tories are pressing for the chancellor to defend prosperity.
Tim Loughton, the former education minister, said: “This government is absolutely on the side of people who want to do the right thing, who work hard and keep their noses clean. But that message is not getting across.
“It’s not just about PR. It’s about doing some of the things people voted Conservative for at the last election – that’s about reducing taxes, it’s about recognising families are having a tough time and recognising marriage in the tax system… these are things people voted Conservative for.”
HMRC is continuing to ramp up the number of raids on premises it carries out as part of criminal investigations, searching 761 properties in the last year
Lord Howard Leigh of Hurley discusses the government’s initiatives to mitigate tax avoidance and evasion
Top 50+50: Demand for tax advisory services remains high, but fee pressure is expected in relation to compliance services
The demand for tax advisory services remains high and this looks to continue; but fee pressure is expected in relation to compliance services as the “Making Tax Digital” initiative is rolled out,
While some resistance to change is to be expected, the degree of controversy surrounding HMRC's Making Tax Digital proposals has surprised the government