Short-term measures include a new aid package of up to £5 billion to help cover the cost of energy bills. In addition, he added: “I have another significant reduction in fuel tariffs in mind – temporarily, in the short term. Because I think it’s one of the biggest costs people face, even in business.”
But Mr Javid continues: “The government cannot stop the impact of high price increases on everyone. You can’t reduce everything.
“The long way out, the better way, is turbo growth. I’ve always believed in free markets, low taxation, easy regulation as necessary conditions for growth.
“It was true 20-30 years ago, it was true under Margaret Thatcher, and it’s true today because of how economies grow and how they function.”
Current tax levels, says Mr Javid, are “seriously hampering growth”. “And if you don’t do something about it now, very quickly, you will find that you are stuck at a very low growth rate and will not be able to meet the demands of the British population. From public services… and it’s really going to hurt living standards in the long run.”
“Tax cuts are necessary for development”
In a thinly veiled attack on Mr Sunak, he says: “Our tax rate is now at an almost 70-year high – and that’s what happened under the Conservatives. I think that bothers many. So I think tax cuts are a prerequisite for growth.
“There are some who say that without growth you can’t deduct taxes. I think this is wrong. I think this is a fundamentally flawed analysis. I don’t think you can grow without tax deductions.”
So far, Mr Javid has neglected the elephant in the room: the increase in Social Security, or Health and Social Security, introduced by Mr Sunak and publicly backed by the then Health Secretary, to put money into the NHS, which is struggling to cope will. With the Covid backlog.
As for his plans for long-term tax changes, he says: “I would abolish health and social security.
“It’s a 1.25 percent levy on income and that’s something I don’t think is necessary. I don’t think we need it anymore. And I think it complicates the tax system.”
Asked about his extraordinary change of heart since endorsing the move since September last year, Mr Javid says: “When I was health secretary I wasn’t chancellor. It wasn’t my job to pay for that.
“My job has been to identify what health and social care reforms are needed and to ensure that the costs are as minimal as possible to achieve what we want to achieve.
“When the Treasury came back on how they were going to fund it, I understood. I’m not sure if I would be chancellor, but I was focused on my work and I wanted to do other people’s work for them. “I’m not trying.”
How would Mr Javid have funded an extra £12billion a year for health and social care?
“The wiggle room we get from existing taxes without new taxes was significant,” he says. “I would set revenue from existing taxes to prioritize health and social care.”
Bringing forward the planned 1p tax deduction
Mr Javid’s plans include bringing forward the proposed 1p cut in income tax from 2024-25 and lowering the property tax rate from 20p to 19p from next year “to support people’s growth and income”.
He would also skip a planned corporate tax hike from 19 percent to 25 percent starting next year and immediately announce the move to end speculation over the proposals, he warned, “to stifle business investment and discourage international trade.” Makes us rethink. About Great Britain”.
Mr Javid continued, returning to George Osborne’s policy of reducing corporate tax every year, saying: “I thought it was a great policy. It’s about post-Brexit Britain and the kind of country we want to be.” This sends a really strong signal to businesses. We should lower taxes, not raise taxes.”
Mr Javid, who voted to remain in the 2016 referendum but has since declared himself a full Brexit convert, says that since Brexit under Mr Johnson’s government “we have actually become more European than less European” – on appeal on the size of the condition and the extent of the interference in people’s lives.
“I will once again take a new approach to lowering corporate income tax to 15 percent,” he says. This will be the lowest corporate tax in the G20. “I think it’s going to be a great clarion call to companies around the world about what kind of country we want to be and how we’re going to create prosperity.”
Mr Javid points to his decision to bring Health Education England, like Kwango, into the NHS as an example of how Whitehall can achieve the cost savings needed to fund the whole scheme. He says the ‘fixed cost’ of his tax systems would be £39bn but in reality ‘it would be a lot less’ due to additional revenue generated from more investment in the UK. “When George Osborne started cutting corporate taxes, revenues actually went up year after year. It didn’t sink.”