Jacob Rees-Mogg, Minister for Brexit Opportunities and Government Effectiveness, expressed broad support for the comments and also pushed for a unilateral reduction in tariffs. “Jacob is a strong supporter of unilateral tariffs,” a government source told the Financial Times.
Another confirmed that Mr Johnson was sympathetic to the move, adding: “The Department of International Trade is not a fan.”
Spokesmen for Mr Rees-Mogg and Mr Malthaus declined to comment.
The figures in the hall insisted that there was no dispute, and the meeting was debatable, as ministers offered ideas to reduce the cost of living.
Asked about the plans on TalkTV, Mr Johnson dismissed allegations that the government had intervened too late. He insisted that cabinet ministers were doing “everything they could” to alleviate the crisis.
“We help people by reducing the municipal tax, making sure we support people who are facing special difficulties [and] investing more money in local councils to give them the money they need, ”he said.
But Thorsten Bell, chief executive of the Resolution Foundation’s think tank, said: “If the ‘answers’ offered to the massive and immediate energy crisis of living costs are long-term regulatory reforms in childcare and maintenance, then we we lost the plot. “
Pressure on the government remains to go further, not least on Tory benches, as the tax burden continues to rise as energy and food bills rise.
“They must repeal the tax increase”
On Tuesday, there were new calls for tax cuts from Tory MPs who were once in the cabinet.
John Redwood, a former Welsh secretary, told The Telegraph: “They need to repeal the tax increase. How many more times do we have to tell them?
“Something big in the increase in their taxes has just hit in the form of these increases in energy and petrol bills. It’s like a tax increase, so the government shouldn’t double it with its own tax increases. “
David Davis, a former Brexit secretary, said of the new tax revenue data: “It shows once again how completely unnecessary it is to increase national social security contributions. Each forecast is too pessimistic. The only thing that will reduce taxes is an increase in taxes. Again, we have evidence that the Ministry of Finance does not understand dynamic taxes.
Daniel Boxhol of the Alliance of Taxpayers said: “With rising inflation, the freezing of the Chancellor’s tax breaks is actually a hidden tax on unsuspecting taxpayers who are already facing the highest tax burden in 70 years.
“The treasury must link the thresholds to inflation or wage growth to avoid fiscal resistance and give taxpayers and businesses the much-needed respite.”
Mr Johnson and Mr Sunak are believed to have faced costs in recent months.
The chancellor is determined not to sign new spending increases, given the scale of the UK’s debt, after supporting the economy during the Covid pandemic. But in recent months, number 10 has called for further interventions to help with the cost of living crisis, with some proposals blocked by the finance ministry.
During the cabinet meeting, it was learned that Mr Sunak had set out the £ 22bn support package already announced by the Treasury, including a 5 pence reduction in the fuel duty.
He also warned of rising public spending amid fears that this could “lock in” the unusually high inflation rates seen in the country and around the world this year.
The Office of Budget Accountability, an independent government forecaster, warned that inflation could reach nine percent by the end of the year.
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