Conservative shadow chancellor Andrew Griffith has called for tax cuts in the upcoming Budget, warning that the current economic burden on the country is "reaching nosebleed territory." Griffith criticized Chancellor John Healey, suggesting Healey was unprepared for the state of the UK's finances upon taking office.
In a speech delivered at a London college, Griffith stated that "markets can smell weakness" and outlined new policies aimed at supporting small businesses. He indicated that a future Conservative government would repeal the IR35 tax rules for self-employed workers, which he described as "torture" for small firms and sole traders. "Instead of getting on with the job, they're forced to spend time and money being tracked and traced by HMRC, filling four extra reports a year before they've even started their tax return," Griffith said.
Griffith announced the formation of a taskforce to reform the tax compliance system, intending to reduce the burden on small businesses. This taskforce will be led by Tory peer Lord Mackinlay of Richborough and Robert Colvile, director of the Centre for Policy Studies. Small businesses reportedly incur £25 billion annually in tax compliance costs, with owners spending an average of 44 hours per year on tax paperwork, according to the Federation of Small Businesses.
Griffith also commented on the appointment of union leaders to the Bank of England's board of directors, citing the recent appointment of TUC boss Paul Nowak. While acknowledging this has been a practice under previous governments, he suggested it felt "pretty 1970s" and questioned its impact on the institution's reputation for financial discipline.
Meanwhile, Chancellor John Healey is scheduled to meet with Labour's union paymasters to discuss their demands regarding taxation and Brexit. These discussions come approximately six weeks before a significant Budget. Reports suggest the union leaders will present a list of proposals, potentially including wealth taxes, changes to the personal allowance, modifications to fiscal rules, and a reassessment of the UK's relationship with the EU.