In news that would attract more attention if not for Brexit, the government is briefing that there will be no the major tax cuts despite the promises Boris made during his leadership campaign, such as raising the income threshold for lower earners and increasing the 40% tax rate threshold from £50,000. Going into an election without having delivered Brexit or tax cuts means Boris definitely won’t be running on his record as PM.
Guido has been told in explicit terms “the cuts ain’t happening“, with the Treasury instead prioritising spending on infrastructure, such as roads and hospitals. The Treasury is already weary of Boris’s spend-happy approach to government, with the policies announced at Tory conference alone totaling almost £60 billion. Government borrowing was £9.4 billion in September according to data released yesterday. The first time in 5 years that the level of borrowing has increased year-on-year in September. Total borrowing for the financial year to date stands at £40.3 billion, £7.2 billion more than in the same period last year. In comparison the revenue lost to HMRC keeping the promise Boris made to raise the higher tax threshold for the middle classes looks like mere pocket change.