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Sajid Javid will 'simplify' the tax system in first Budget | Sajid Javid will 'simplify' the tax system in first Budget |
(about 1 hour later) | |
Chancellor Sajid Javid has said he wants simplify the tax system ahead of his Budget in the autumn. | Chancellor Sajid Javid has said he wants simplify the tax system ahead of his Budget in the autumn. |
In his first interview since becoming Chancellor, Mr Javid told the Times he was a "low tax guy" but said it was important to "always be thinking about the lowest paid". | In his first interview since becoming Chancellor, Mr Javid told the Times he was a "low tax guy" but said it was important to "always be thinking about the lowest paid". |
He added that maximising revenue "doesn't always mean that you have to have the highest tax rate possible". | He added that maximising revenue "doesn't always mean that you have to have the highest tax rate possible". |
The chancellor also said he was considering changes to stamp duty. | The chancellor also said he was considering changes to stamp duty. |
When asked about taxes for higher earners, the chancellor said people would have to wait for the Budget. | When asked about taxes for higher earners, the chancellor said people would have to wait for the Budget. |
"I think taxes should be efficient," he said. | "I think taxes should be efficient," he said. |
"Generally I want to see lower taxes, but at a level that is going to pay for the public services." | "Generally I want to see lower taxes, but at a level that is going to pay for the public services." |
Speaking to Radio 4's Today programme, Paul Johnson from the Institute for Fiscal Studies said: "All chancellors come in saying they want simpler taxes but they always end up leaving office with a longer and more complicated tax code than they started [with]." | |
Mr Javid said he was still thinking about whether changes might be needed to the government's current long-term plan of eliminating the deficit by the mid 2020s. | Mr Javid said he was still thinking about whether changes might be needed to the government's current long-term plan of eliminating the deficit by the mid 2020s. |
"It is obvious to me that when you've got some of the lowest rates on government debt this country has ever seen I wouldn't be doing my job if I wasn't thinking seriously about how do we use [that opportunity]," he said. | "It is obvious to me that when you've got some of the lowest rates on government debt this country has ever seen I wouldn't be doing my job if I wasn't thinking seriously about how do we use [that opportunity]," he said. |
Mr Johnson said the chancellor could take advantage of "extremely low interest rates" and begin "borrowing more to pay for more infrastructure". | |
The Times also reported that Mr Javid is considering switching the burden of stamp duty from buyers to sellers, meaning first-time owners would never pay the tax. | |
Stamp duty - a purchase tax paid in England and Northern Ireland on properties worth more than £125,000 - was abolished in 2017 for first-time buyers spending up to £300,000 on a house. | |
In June, Prime Minister Boris Johnson outlined plans to raise the threshold for the higher rate of income tax from the current threshold of £50,000 to £80,000. | In June, Prime Minister Boris Johnson outlined plans to raise the threshold for the higher rate of income tax from the current threshold of £50,000 to £80,000. |
Paul Johnson said the prime minister's plans on spending would require "extra borrowing particularly [if it's] accompanied by tax cuts". | |
Mr Javid said he had not yet decided whether to hold the Budget before 31 October, the date the UK is expected to leave the EU. | |
He also warned that a no-deal Brexit might require what he termed "a significant economic package as a response". | He also warned that a no-deal Brexit might require what he termed "a significant economic package as a response". |