Rishi Sunak says he will 'reward' tightening benefits by cutting taxes
The PM's pledge comes a day after Chancellor Jeremy Hunt said he was unsure whether the government could afford to slash taxes further. The tax burden is expected to rise to the highest level since the Second World War by the end of the decade.
Sunday 7 January 2024 12:30, UK
The country will be "rewarded" with tax cuts if the government is able to make it harder for people to claim out of work and sick benefits, according to the prime minister.
Rishi Sunak reiterated his position on welfare and financial policy as he continues to ramp up his electoral campaign.
Speaking to The Sunday Telegraph, the prime minister sought to create a clear contrast between the Conservatives and Labour as campaigning begins.
And he expanded his position while speaking to the BBC.
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He said: "What we have seen over the past couple of years is a very significant rise in the number of people who have been deemed unfit to work, and that is something that is concerning to me.
"In the last decade, that system hasn't been reformed at all and you have seen the number of people who are signed-off has tripled. Now do I think our country is three times sicker than it was a decade ago? The answer is no.
"The system is not working as it was designed to work and now we are bringing forward reforms that will mean that we look at the eligibility for who is signed-off sick.
"That won't affect all those on existing benefits. It will come in over time on people who are newly presenting to the welfare system.
"And that is something I think is the right thing. It is about fairness. It is about making sure that everybody who can work, does work.
"And for everyone who is working hard, we reward that hard work with tax cuts - that is a conservative approach, it is one that I think is right for our country."
While Mr Sunak insisted his priority is cutting taxes, he claimed that they would continue to rise if Sir Keir Starmer enters Downing Street.
The PM's pledge comes a day after Chancellor Jeremy Hunt said he was unsure whether the government could afford to slash taxes further.
During an interview with The Sunday Telegraph in Nottinghamshire, Mr Sunak refused to be drawn on which taxes he intends to cut, with inheritance tax a particular cause for concern among many Tory MPs.
But at an event with local supporters and business leaders, he did hint that the VAT threshold of £85,000 would not be increased.
And indicating that national insurance and income tax may be at the top of his wishlist, Mr Sunak told the newspaper: "I believe in the nobility of work, I believe work is central to people's lives. And I believe that a society where people are working hard should be one where their hard work is rewarded."
The PM pointed to his recently announced cut to national insurance - which came into force yesterday - as evidence of the progress his government has made.
An estimated 27 million payroll employees will benefit from NI falling from 12% to 10%, and someone on the average UK salary of £35,000 will save £450 a year.
"The autumn statement delivered the biggest set of tax cuts in one event since the 1980s," Mr Sunak said. "That should give people a sense of the scale of what we've just done, and a sense of my ambition and the chancellor's determination to cut taxes."
Despite this, the tax burden is expected to rise to the highest level since the Second World War by the end of the decade - primarily because income tax thresholds have been frozen, dragging workers into higher rates when they receive pay rises.
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Mr Sunak warned further tax cuts will mean "difficult decisions" on public spending as well, adding: "Lots of people will say to us 'Oh gosh, you're not going to spend enough here, there and everywhere'.
"I'm going to be crystal clear: my priority is cutting taxes, not more government spending. We need a more efficient public sector, not a bigger public sector.
"So that's the plan. The only way to cut your taxes over time is to have a smaller, more efficient public sector."
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Elsewhere in the interview, the prime minister claimed Labour "doesn't care" about reducing the number of small boats crossing the Channel.
And he appeared to shrug off the possibility of Nigel Farage making a comeback to lead Reform UK, saying: "The choice at the next election, either I'm going to be prime minister at the end of it, or Keir Starmer is going to be prime minister at the end of it."
Mr Sunak's interview comes days after Sir Keir kickstarted his election campaign - and declared he will "fight fire with fire" if the Tories "go low" during the race.
Speaking to Sky News on Sunday morning, Sir Keir was unable to say which taxes he wants to cut - but instead wants to focus on those which impact upon "working people".
He also blamed 14 years of stagnation for the low growth in the UK and therefore the higher tax burden.