Anger as Rishi Sunak says only 'idiots' think he can cut tax, with critics branding the PM 'desperate'

20 January 2023, 09:44

Rishi Sunak has sparked fury by suggesting that only "idiots" understand why he cannot cut taxes.

Speaking on a visit to Morecambe in Lancashire on Thursday, the Prime Minister said he wanted to cut tax but that the war in Ukraine and the after-effects of the Covid-19 pandemic meant he could not yet.

Chancellor Jeremy Hunt is planning to unveil a spring budget in March but immediate tax cuts are thought unlikely as the Government tries to tackle inflation.

Mr Sunak said: “I'm a Conservative, I want to cut your taxes... I wish I could do that tomorrow quite frankly, but the reason we can't is because of all the reasons you know.

“You're not idiots, you know what's happened. We had a massive pandemic for two years, we had to shut the country down, do a bunch of extraordinary things that didn't come cheap.

"Now we've got this war going on which is having an enormous impact on inflation and interest rates.”

Mr Sunak said it “takes a bit of work” to get the state of the public finances “where it needs to be”.

But he vowed to strengthen the economy, secure lower interest rates and get a “grip of” soaring inflation.

He added: “Trust me that's what I'm going to do for you this year, that's what we're going to do while I'm Prime Minister and if we do those things we will be able to cut your taxes.”

John Longworth, the former director-general of the British Chamber of Commerce, said Mr Sunak using the word 'idiot' “shows a certain level of desperation on his part”.

He said: “The only idiot in the room is Rishi Sunak. It is quite ridiculous that he should take this line, as the UK had the lowest GDP to debt ratio in the G7 when he took office.

“We should cut tax and regulation, stimulate the economy and enterprise - and that will generate tax revenues.

“It is a bizarre situation that we are in, where we have people at the top of government who do not believe in growth. They need to go and read Mrs Thatcher.”

His comments came during the week that Tory MPs aligned with former prime minister Liz Truss's tax-cutting agenda met for the first time as part of the "Conservative Growth Group".

A senior Tory MP who backed Ms Truss told the Telegraph: “We do want tax cuts and I don't think I'm an idiot, frankly. The only way to stimulate the economy is to cut taxes and that's the conservative way, it always has been.

“I know he does want to cut taxes and I look forward to the day we can reduce taxes because that's the way to generate the wealth and the jobs that we need.”

John Redwood, a former Cabinet minister, said: “A tax cut in the budget is essential to help people. We are overtaxing businesses and individuals.

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“Tax cuts are eminently affordable: in fact it is the tax rises we can’t afford, stopping growth and higher pay. This is not the way to go: we desperately need a growth strategy.

“The way to get the deficit down is to grow the economy, and that is what we need to do.”

Asked whether Mr Sunak viewed people who wanted tax cuts as “idiots”, a Downing Street spokesman said: “He didn't call anybody an idiot and he himself set out his ambitions to reduce the tax burden over time.

“He said that the worst thing he could do is make promises he can't keep and saddle a country with more debt.

“And he set out once again that his overall ambition is to reduce tax. But that needs to be when we have when we have economic stability and inflation's come down.”