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Hammond warns Tory candidates over tax cut pledges Hammond warns Tory candidates over tax cut pledges
(about 3 hours later)
The chancellor, Philip Hammond, will tell Tory leadership hopefuls that they cannot hope to rebuild the party simply by cutting taxes and slashing red tape. He will also warn against “reckless” solutions offered by “populists” and defend government intervention on issues such as the national living wage.The chancellor, Philip Hammond, will tell Tory leadership hopefuls that they cannot hope to rebuild the party simply by cutting taxes and slashing red tape. He will also warn against “reckless” solutions offered by “populists” and defend government intervention on issues such as the national living wage.
Hammond will argue that a “regulated market model” rather than total liberalisation is the best way to raise living standards.Hammond will argue that a “regulated market model” rather than total liberalisation is the best way to raise living standards.
With Philip Hammond's departure likely, an uphill battle awaits his successor | Larry ElliottWith Philip Hammond's departure likely, an uphill battle awaits his successor | Larry Elliott
Leadership contenders are already setting out plans to cut taxes in an effort to appeal to the grassroots Tory members who will decide on the next occupant of No 10.Leadership contenders are already setting out plans to cut taxes in an effort to appeal to the grassroots Tory members who will decide on the next occupant of No 10.
Dominic Raab has pledged to cut income tax by a penny a year – 5p over the course of a parliament, to just 15p in the pound for the basic rate – which critics have claimed would cost £25bn. The foreign secretary, Jeremy Hunt, has also adopted a tax-cutting approach, although in his case he suggested slashing corporation tax to Irish levels of 12.5%.Dominic Raab has pledged to cut income tax by a penny a year – 5p over the course of a parliament, to just 15p in the pound for the basic rate – which critics have claimed would cost £25bn. The foreign secretary, Jeremy Hunt, has also adopted a tax-cutting approach, although in his case he suggested slashing corporation tax to Irish levels of 12.5%.
A source said Hammond’s speech would be a “rebuke to those who call for total liberalisation of the market” and a warning against “those who seek to renew the Conservative party by relying on tax cuts and deregulation only”. He would be making the point that “letting rip the forces of the free market doesn’t always work for all”, the source said.A source said Hammond’s speech would be a “rebuke to those who call for total liberalisation of the market” and a warning against “those who seek to renew the Conservative party by relying on tax cuts and deregulation only”. He would be making the point that “letting rip the forces of the free market doesn’t always work for all”, the source said.
The environment secretary’s campaign plan was knocked off course by revelations about drug-taking. He has sought to regain his place as the leading ‘Stop Boris’ with a series of policy pledges.The environment secretary’s campaign plan was knocked off course by revelations about drug-taking. He has sought to regain his place as the leading ‘Stop Boris’ with a series of policy pledges.
Gove has privately reassured colleagues over recent months that he understands the devastating consequences of a no-deal Brexit, not least for his own environment department.Gove has privately reassured colleagues over recent months that he understands the devastating consequences of a no-deal Brexit, not least for his own environment department.
He has also stressed his background as a reformer, and promised to boost education funding and tackle social care funding – all pitches that could appeal to Stewartites, potentially enabling Gove to overtake Jeremy Hunt. He has also stressed his background as a reformer, and promised to boost education funding and tackle social care funding – all pitches that could appeal to Stewartites, potentially enabling Gove to overtake Jeremy Hunt. 
He received 37 votes in the first round, 41 in the second, and 51 in the third round, placing him third each time. He received 37 votes in the first round, 41 in the second, and 51 in the third round, placing him third each time. In the fourth round he rose to second place with 61 votes.
Hunt’s team called his showing on Wednesday a 'fantastic result'. It was, in the sense that he avoided being overtaken by Gove, and that he picked up an extra eight votes from Tuesday’s showing of 46.Hunt’s team called his showing on Wednesday a 'fantastic result'. It was, in the sense that he avoided being overtaken by Gove, and that he picked up an extra eight votes from Tuesday’s showing of 46.
But there is no doubt that after three rounds of voting Hunt would have hoped to be the obvious challenger to Johnson, whereas he was only narrowly ahead of Gove, with just three votes in it.But there is no doubt that after three rounds of voting Hunt would have hoped to be the obvious challenger to Johnson, whereas he was only narrowly ahead of Gove, with just three votes in it.
The foreign secretary’s team are conscious that he risks appearing middle-of-the-road, with his rivals dismissing him as 'continuity May', or worse, Theresa in trousers, or 'Tit' for short.The foreign secretary’s team are conscious that he risks appearing middle-of-the-road, with his rivals dismissing him as 'continuity May', or worse, Theresa in trousers, or 'Tit' for short.
He received 43 votes in the first round and 46 votes in the second round. He continued to be in second place in the third round with 54 votes. He received 43 votes in the first round and 46 votes in the second round. He continued to be in second place in the third round with 54 votes, but Gove overtook him in the fourth round, where Hunt finished third with 59 votes.
Before his punchy performance in Tuesday’s debate Javid appeared vulnerable, with some allies fearing that he could be overtaken by Stewart, whose off-the-wall campaign style had helped him to remain in contention.
But Javid scored one of the few clear victories amid the cacophony in the BBC studio, bouncing his four colleagues into promising an independent inquiry into Islamophobia in their party – a promise the winner will now be held to.
His campaign team professed themselves delighted with the result, and will now turn their attention to trying to win over Stewart’s backers, by stressing Javid’s liberal credentials.
However, one moderate former Tory minister, who had backed Javid in the first round because of personal loyalty, said: “I like him, but I can’t support him because I don’t agree with his politics – he’s a Thatcherite.”
He received 23 votes in the first round, 33 votes in the second, and 38 in the third.
Johnson’s progress to Downing Street appeared unstoppable even before last week’s first round of voting among MPs, and most of his colleagues believe it is now all but inevitable that he will be Britain’s next prime minister.Johnson’s progress to Downing Street appeared unstoppable even before last week’s first round of voting among MPs, and most of his colleagues believe it is now all but inevitable that he will be Britain’s next prime minister.
His well-disciplined campaign team will continue with their strategy of subjecting him to minimal media exposure, though once the field is narrowed down to two, the final pair will appear in more than a dozen head-to-head hustings for Tory members. The team’s main aim is simply to keep heads down and avoid Johnson creating headlines for the wrong reasons.His well-disciplined campaign team will continue with their strategy of subjecting him to minimal media exposure, though once the field is narrowed down to two, the final pair will appear in more than a dozen head-to-head hustings for Tory members. The team’s main aim is simply to keep heads down and avoid Johnson creating headlines for the wrong reasons.
Johnson won the first round with 114 votes, and the second round with 126 votes. He won the third round with 143 votes. Johnson won the first round with 114 votes, and the second round with 126 votes. He won the third round with 143 votes. He increased this to 157 votes in the fourth round.
Hammond will be speaking in London on Thursday at the launch of a report by living standards thinktank the Resolution Foundation on the impact of the higher minimum wage.Hammond will be speaking in London on Thursday at the launch of a report by living standards thinktank the Resolution Foundation on the impact of the higher minimum wage.
He will say: “The truth is, we have seen a gap open up – in Britain and in other developed countries – between the theory of how a market economy and free trade creates and distributes wealth, and the reality experienced by many ordinary people.He will say: “The truth is, we have seen a gap open up – in Britain and in other developed countries – between the theory of how a market economy and free trade creates and distributes wealth, and the reality experienced by many ordinary people.
“But that doesn’t mean we should abandon our economic model. Of course, we can’t ignore people’s concerns either – otherwise the reckless solutions of the populists will flood in to fill the vacuum.“But that doesn’t mean we should abandon our economic model. Of course, we can’t ignore people’s concerns either – otherwise the reckless solutions of the populists will flood in to fill the vacuum.
“So for those, like me, who believe passionately that harnessing the power of market economics is the only way to deliver progress … it is imperative that we take decisive action to show that the regulated market model can deliver higher wages and higher living standards.”“So for those, like me, who believe passionately that harnessing the power of market economics is the only way to deliver progress … it is imperative that we take decisive action to show that the regulated market model can deliver higher wages and higher living standards.”
Philip HammondPhilip Hammond
Conservative leadershipConservative leadership
ConservativesConservatives
Tax and spendingTax and spending
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