23rd June 2020
Former chancellor Sajid Javid has called for business taxes to be temporarily cut in a bid to revive the UK economy.
In a report by the Centre for Policy Studies, Javid also warned successor Rishi Sunak against returning to austerity.
With the economy reeling from the financial effects of COVID-19, Sunak is expected to deliver a mini fiscal announcement next month.
Reports suggest Sunak may announce a temporary cut to the UK's standard VAT rate, from 20% to 15%.
The Chancellor could also reclassify the UK's 5% reduced rate of VAT so that it applies to hard-hit restaurants, cafes, and hotels.
"The Government should avoid raising headline rates of income tax, VAT or National Insurance in this Parliament.
"Indeed, temporary cuts in VAT and employer's National Insurance are extremely good candidates for stimulus spending, as are reforms to our business investment regime.
"They should also look at cutting distortionary taxes, such as stamp duty land tax for primary residences."
We will update you on any tax changes.