Former Torres Cabinet Secretary David Davis said on Saturday that if the Conservatives became known as the party of high taxes, the damage to their financial reputation would be as deep and lasting as that inflicted on the John Major government by the destruction of Black Wednesday. September 1992. Davis told the Observer that with the country now operating at the highest total tax burden in decades, electoral risks were clear. “Gaining the party’s reputation with high taxes will do just as much damage to the Conservative Party as the ERM crisis did to us in the 1990s,” Davis said. The chaotic and costly exit of the United Kingdom from the EU exchange rate mechanism marked the Great’s government’s reputation for financial management and set it on a trajectory for the overwhelming defeat of New Labor in 1997. A poll on LabourList last week caused deep concern among Tory lawmakers, who found that the Conservatives were already seen as the party to the higher taxes by more voters (39%) than those with Labor (27%). %). When asked who they consider to be the party of low taxes, 30% mentioned Labor and 27% mentioned Tories in the Savanta ComRes survey. Even after offering some limited tax cuts in last month’s Spring Statement as Sunak sought to mitigate the effects of the cost-of-living crisis, the overall tax burden in the UK is still at its highest level since the 1950s, when country was rebuilt after World War II. Sunak, who is reportedly going to California for an Easter vacation, used his spring statement to cut fuel tax by 5p a liter and announced that the threshold for people to start paying national insurance would be raised from .5 9,568 to 12,750 £ in July. While insisting he was married to low taxes, he decided, however, to keep most of the 20 20 billion he estimated he received from additional tax revenue from inflation cuts in the run-up to the election. In an extremely unusual move, a reduction in the basic income tax rate was promised from 20 p.m. at 7 p.m. – but not until 2024. Many Tory MPs believe he will have to make tax cuts now to boost growth and that it will be too late to run for chancellor with tax cuts in 2024. Others have criticized him for not doing enough to support low-income people. income and those with benefits. On Saturday, as cost-of-life protests erupted across the country, former Tory leader Ian Duncan Smith said that instead of maintaining high taxes to control the deficit, Sunak should boost economic growth while reducing them. to offer more help to people with universal credit by increasing the amount they can earn before their benefits diminish. Warning about keeping taxes high and the risk of stagnation – low growth and rising inflation – Duncan Smith said: “Fiscal squeeze is a disaster right now and we must not do it. “Reducing the deficit will really add to the problem of stagnant inflation.” Veteran Tory MP Peter Bowen said the chancellor had to act now to cut taxes, otherwise he would risk a repeat of the 1990s when voters took a firm view of Tories’ lack of financial capacity that proved impossible to change before. the 1997 general elections. “John Major has put the economy back on track [after the ERM debacle] but the electorate had decided long before that and thought, “we will give the other children a chance.” We still have time to do it right, but we have to do it now. We have to correct the course now. “ A new analysis by the Sunak Reorganization Foundation of tax measures taken by Sunak shows that they will raise £ 14 billion during the financial year. Treasury Secretary-General Pat McFadden said: “The Tories have become the party of high taxes because they are the party of low economic growth. “The Tory government is the only G7 country to increase income taxes this year.” Labor is proposing an unexpected tax on the profits of North Sea oil and gas companies to help families with their energy bills, and they are firmly opposed to raising Sunak national insurance contributions. There is also pressure from elsewhere for private companies to offer assistance. A study of shareholder payments by the “big six” energy suppliers shows that dividends and share repurchases have risen to £ 43.5 billion over the past decade. Thinktank Common Wealth, which conducted the survey, said suppliers – Centrica, EDF, E.ON and its subsidiary nPower, Scottish Power and Scottish & Southern (SSE) – were in a sound financial position and could afford to offset some of the rising electricity and gas costs facing their customers. Meanwhile, growing pressure is being felt by food banks as people struggle to make ends meet and resort to increasingly desperate measures to warm up and feed their families. Gerard Woodhouse, a local Labor councilor who runs the L6 Community Center in Everton, Liverpool, said the charity’s food bank and food association are open six days a week, not four because of increased demand, but at the same time had seen a reduction in donations in recent days because “people who donated now need help themselves.” “The shops donate potatoes, leeks, cabbages, but I can not get rid of them. They come back to me because people say, “It costs too much to cook,” he said. In other cases, “People go to bed at 6pm, so they do not have to turn on the heating or use electricity. The number of people asking for thicker duvets is crazy. “If I had 200 this week they would have left,” he said. “You hear about the poor times of the 1930s. These stories are happening today. It will just get worse. “
