Many argue that the austerity policies of the 2010s went too far. With the battle to succeed Boris Johnson now under way, the danger is that the Tories will veer towards fiscal populism just when hard-headedness is needed
Save time by listening to our audio articles as you multitaskThe Conservatives have spent most of their 12 years in government trying to balance budgets: cutting the deficit was their flagship policy when David Cameron was prime minister. Yet some British right-wingers have recently started following a path laid down by America’s Republicans, whose pivot from fiscal hawkishness to embracing deficits under President Donald Trump was a sight to behold.
Mr Sunak had begun to loosen the purse-strings in response to soaring energy bills. In March he cut fuel duty and announced a partial reversal of the national-insurance increase. He had also planned to cut the main rate of income tax in April 2024. Yet reports suggest Mr Johnson wanted Mr Sunak to scrap the planned increase in corporation tax. One of his advisers had floated a temporary cut to value-added tax .
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