After Jeremy Hunt’s robotic speech this morning, the Lobby took to applying similar scrutiny to his tax affairs as they have been to his predecessor-but-one. After being asked if he’s ever had to pay HMRC a fine, Jeremy chose to avoid answering – twice – instead saying:

“I’m not going to talk about my personal tax affairs, but I don’t think there’s anything you’d find interesting to write about”

When pressed further by Harry Cole, he responded that “people at home aren’t remotely interested”. It’s not the first time Jeremy’s tax affairs have been scrutinised. 

Guido understands that unlike Rishi, who waited over four hours to put out a clarifying statement, Hunt’s just given a pool interview to the BBC where he confirmed he has never received a penalty from HMRC. Advisors really should be prepping clear answers to these inevitable questions…

Foreign Office Minister Gillian Keegan was spot on when she told Times Radio this morning that the top rate of tax was a political time bomb left behind by Gordon Brown:

“I always knew that it was going to be a political problem. I mean, let’s be honest, this was a political trap that was set by Gordon Brown in the dying days of his role as PM, right. And I paid the 50% tax. I was in business then. And I remember how devastating it was because actually, it meant you were paying about 65% tax. And there’s something in your mind, which is like, really, you know, only 35% for me? And I’m doing all these hours. I was a business person, then it was set as a political trap…. In theory it [the top rate of tax] should never have been there.”

There is something immoral about the government taking the majority of your income in tax. It is also a disheartening disincentive; reversing this spiteful tax is the correct policy, though this might perhaps be the wrong time. Getting rid of a political tax that was only set up by Gordon Brown when he knew he was likely to be ousted –to hurt the Tories rather than raise revenue – was the right thing to do. Even the IFS’ Paul Johnson thinks in revenue terms “It might plausibly cost nothing at all”. The tax was not about raising revenue – it was about political positioning.

Back in Fife, Brown will be rocking in his chair laughing that his tax booby trap, announced only weeks before he left office, and which was expected to cause problems for his successor David Cameron, has finally exploded in the face of a Tory Chancellor. The fuse wire on Brown’s time bomb turned out to be 12 years long…

After The Sun broke the exclusive of conference late last night, the Lobby’s just been informed that the government will now not be going ahead with the 45p rate abolition, with a u-turn expected to be announced within the next hour. Just yesterday the press were briefed that Kwasi was to tell conference “We must stay the course. I am confident our plan is the right one.”

This morning the course has not been stayed – it has been re-directed in another direction altogether. Kwasi’s statement:

From supporting British business to lowering the tax burden for the lowest paid, our Growth Plan sets out a new approach to build a more prosperous economy. However, it is clear that the abolition of the 45p tax rate has become a distraction from our overriding mission to tackle the challenges facing our country. As a result, I’m announcing we are not proceeding with the abolition of the 45p tax rate. We get it, and we have listened. This will allow us to focus on delivering the major parts of our growth package. First, our Energy Price Guarantee, which will support households and businesses with their energy bills. Second, cutting taxes to put money back in the pockets of 30 million hard-working people and grow our economy. Third, driving supply side reforms – including accelerating major infrastructure projects – to get Britain moving.

The move came after crisis talks yesterday between the PM and Chancellor; their hands forced by Tory MPs continuing to state on the record they couldn’t vote for the plans, despite an open warning from Jake Berry that they’d lose the whip. Gove was at the forefront of the rebellion…

Rachel Reeves is continuing Labour’s long-standing tradition of being utterly inconsistent on tax, though has now begun pirouetting on policy within the same interview. During her Today outing, the Shadow Chancellor slammed the Tories for having “fanned the flames… [with] more unfunded tax cuts, which has resulted overnight in the pound falling to an all-time low against the dollar.”

So far, so good…

Minutes later, however, she suggests Labour would pay to keep the new 19% basic rate of income tax by borrowing:

“In emergency situations – and we are absolutely in a national emergency at the moment – you can borrow”

Labour is mitigating this hypocrisy by claiming the difference between Labour and the Tories is that she would not borrow on the same scale as Kwasi and Truss. Labour have accepted two thirds of the personal income tax cuts. They are only rejecting one cut, the top rate cut…

Meanwhile, Guido also spots Rachel Reeves is now arguing that cancelling the planned corporation tax rise is “wrong”, and Labour wants to see the rate rise in April. This is the same Rachel Reeves that led Labour MPs through the No Lobby in 2021, opposing Rishi’s hike to Corporation Tax…