Budget 2021: Rishi Sunak insists he will cut taxes and this is the fairest way out of the pandemic | politics news

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Rishi Sunak said his intention as an advisor was to “cut taxes on people” and insisted that this was the fairest way out of the pandemic.

The finance minister also said those with “broad shoulders” would pay the majority of taxes and said the Universal Credit changes announced yesterday would help those on the lowest salaries.

Sunak told Sky News’ Kay Burley: “I aspire to lower taxes for people, and that’s what I would like to do as a consultant.

“We had to take some corrective action as a result of the crisis and the response we have taken to it but I hope it is done now, and as we made clear yesterday, our goal is that the work pays off, we reward people’s efforts and I am glad we can start that yesterday.”

In yesterday’s budget, Sunak announced that the “progressive rate” – the amount of universal credit (UC) taken out for every pound someone earns – would be reduced from 63 pence to 55 pence.

This would give those who get it 45 pence per pound instead of the 37 pence, but it only applies to people who qualify for gradual tapers — those who have child liability or have limited ability to work, which is about half of those claiming UC.

Mr. Sunak said that lowering the grading rate is “a very clear statement of my intent and the intent of my government”.

But Labor shadow adviser Rachel Reeves told Sky News: “I don’t think the tax burden at the moment is going down fairly.”

The chancellor added that National Insurance is a “progressive tax” and that he is “comfortable with what it is”.

But he admitted that rising inflation is one of the many issues he has to “address” as a minister.

He told Sky News: “I explained yesterday, and I hope to reassure the country, that the bulk of the inflation we are seeing is the result of two global forces.

“First, economies reopen and supply chains are under pressure, and second, energy prices.

“I don’t have a magic wand and it would be irresponsible for me to stand here and tell you that I can make those global problems go away overnight, I can’t.

“But where the government can take action to help with the cost of living, whether it’s things like fuel surcharges or cutting taxes on the lowest wages, or investing in truck park facilities to help attract people into the profession.

“Where we can make a difference, of course, we will.”

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In yesterday’s budget, Mr. Sunak also announced the reduction of domestic air passenger fare and the cancellation of a planned increase in fuel surcharges.

He has been criticized for lowering taxes on flights just a few days before COP26 starts in Glasgow, but said it was only fair when the cost of living rose that he suggested he had imposed a higher tax on very long flights.

“We are clearly and reliably on our way to net zero,” he added.

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