Chancellor Rishi Sunak has reaffirmed his commitment to cutting business taxes later in the year as the government seeks to get back on track following Monday’s deadly Tory vote of confidence in Boris Johnson.
In a speech to the Onward think tank, Mr Sunak said he would introduce a series of measures in the fall to incentivize investment, according to excerpts released by the Treasury.
It follows criticism from groups such as the CBI and the Federation of Small Businesses that its cost-of-living support package last month did not include any help for cash-strapped businesses.
In his address, Mr Sunak said that only if government and the market worked together to increase productivity would it be possible to build a ‘high growth, high wage economy’ in the UK.
“But we need to be honest about the long-standing weaknesses that hamper our ability to get there…especially around investment, skills and innovation,” he said.
“The challenge of growth and productivity is a common problem. The government and the market must break it together.
Sunak said his economic growth plan was based on three priorities: capital, people and ideas.
“So in the fall we will introduce a series of tax cuts and reforms to encourage companies to invest more, train more and innovate more,” he said.
“Because getting it right won’t just mean the ‘economy’ will get better, but real places too.”