The British prime minister, Rishi Sunak, has launched another bid to persuade voters on economic policy and reverse his party’s slide in the polls ahead of the general election on July 4. As leader of the Conservative Party, he promised further tax cuts and tighter limits on immigration during the party’s campaign launch, an event attended by senior ministers. Sunak defended his economic record and accused the Labour Party of asking taxpayers for a blank cheque.
The prime minister announced a two-point reduction in National Insurance contributions for employees if elected. These cuts would add to measures announced in November and April, bringing the rate down to half of its current level at 6% by 2027. The Conservatives also plan to remove this tax for self-employed workers, who presently pay 6% of their gross income. “Hard work should not be taxed twice; that is unfair,” Sunak said, while signaling that income tax would remain unchanged.
Tax reductions and benefit cuts
Conservatives say the tax cuts will be funded by a tougher approach to tax evasion and by reductions in benefits for those of working age. “We believe it is morally right for those who can work to do so, and to see their effort reflected in greater control over their money,” the prime minister stated. He has positioned himself as the rightful heir to Thatcher-era policies. The government has aimed to bring back millions of workers who left the labor market during the pandemic and have not yet returned to work.
The Conservative platform includes scrapping the stamp duty––the tax on home purchases––for first-time buyers whose homes cost below £425,000 (roughly €504,000). It also proposes raising the income threshold at which pensioners start paying income tax, to offset inflation-driven pension increases. The government argues that over £20 billion in tax relief can be realized by trimming unnecessary public spending and boosting productivity.
The candidate has again raised the specter of future tax increases should Labour win, reminding voters of the financial crisis that followed Labour governance beginning in 1997 and recounting how the party faced deep spending problems when it took office in 2010 after 13 years in power. “Even Labour admitted then that after years of spending, hard choices would be needed,” Sunak remarked, appealing to conservative-leaning voters who favor cautious budgeting.
Right-wing populist threat
The prime minister also acknowledges the challenge posed by Reform UK, a populist right-wing party. To address this, the Tuesday program includes street-level security measures and a plan to combat crime, including recruiting 8,000 new police officers. It also proposes policies on the separation of public spaces by biological sex and a national service program that would require 18-year-olds to serve in the armed forces or in volunteer programs.
On migration, the Conservatives reassert support for a plan to deport asylum seekers to Rwanda and reduce net immigration, with tighter visa rules for foreigners. “Parliament will decide how many people can come to this country. Our plan is simple: we will halve immigration as we did with inflation and continue lowering the figure every year,” Sunak said, insisting that he would not comply with international tribunals that hinder deportations.
The Conservative program aims to stem the loss of votes to Labour and Reform UK, but so far none of the major announcements have shifted public opinion. Labour maintains a clear lead of more than twenty points, while Reform UK seeks to become the third-largest force with around 12% of the vote, buoyed by Nigel Farage’s return to the political stage and his Brexit advocacy.