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Cut welfare to fund 2p income tax decrease, says Tory leadership hopeful Jenrick
Returning the benefits bill to pre-pandemic levels would free up enough money for a 2p income tax cut, Robert Jenrick said as he laid out his vision for Britainâs economy.
In a wide-ranging speech on Wednesday, the Conservative leadership hopeful argued for a small-state, lower-regulation Britain, taking the Margaret Thatcher government has his example.
He told an audience in the upstairs room of a restaurant on Old Queenâs Street, Westminster: âItâs a simple agenda, rather than a big state that fails we need a small state that works.â
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Civil servants
Along with sacking 100,000 civil servants, replacing âfailedâ universities with âapprenticeship hubsâ and reforming the planning system to build more houses, Mr Jenrick argued for âresponsibleâ tax cuts funded by getting more people back into work.
He said: âI am setting a simple target: we will bring the inactivity rate back down to its pre-pandemic level, bringing almost 500,000 people back into the workforce.â
This, he said, would cut the welfare bill by ÂŁ12 billion, enough to fund a 2p income tax cut.
But asked whether he was committing to proposing such a tax cut if he became leader, he rowed back, saying: âWe are not in government and Iâm not going to write the manifesto for four or five yearsâ time.
âBut I have set out what the choice is. Thatâs within our grasp if the Labour Government make the right decisions.â
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Cut taxes
Mr Jenrick also stressed the need to cut taxes âresponsiblyâ, arguing the Liz Truss mini-budget had been a âdamaging episodeâ as it had paired tax cuts with âmassive spendingâ on support for energy bills â something he described as âthe largest single welfare bailout, I think, in our countryâs modern historyâ.
His speech came as voting began in the membership round of the Conservative leadership contest, which sees Mr Jenrick face off with former business and trade secretary Kemi Badenoch, who is widely seen as the frontrunner.
But Mr Jenrick insisted his campaign had âmomentumâ as he argued the Conservative Party faced âan existential challengeâ.
Ms Badenoch is expected to hold a virtual rally of her own on Wednesday evening.
Conservative members have until October 31 to vote for their preferred leader, with the result announced on November 2.
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