Tax cuts for “ordinary working families” are an option, thanks to an “improved state of public finances”, Chancellor Philip Hammond has said.
Speaking to MPs during Treasury questions in the Commons, Hammond noted that, despite the ongoing uncertainty surrounding Brexit, the UK is currently enjoying improved finances. He said that this gives ministers the “luxury of choice” - something the country has not seen for a decade.
He said: “We can choose to support additional spending on public services. We can choose to reduce the deficit more quickly. We can choose to invest in Britain’s future. Or we can choose to cut taxes on ordinary working families.”
This comes as former Brexit Minister Dominic Raab announced he would reduce the basic income tax rate by 5p, should he be successful in his bid to replace Prime Minister Theresa May. If it went ahead, this policy would reduce basic income tax from 20% to 15% over a five-year parliament, with workers seeing a 1p cut per year.