Truss ruled out a change in the tax, despite Sunak pledging to increase it from 19 to 25 per cent from 2023 when he was chancellor.
Commenting on this, Evelyn’s managing director of corporate affairs, Jason Hollands said that Truss’s win means a “marked change” in direction on tax policy.
“While some have expressed concerns that tax cuts will fan inflation, it’s hard to see why keeping corporation tax rates at where they currently are would be inflationary,” Hollands said.
“Likewise, a potential reduction in VAT – an option being mooted – and the temporary suspension of green levies on energy bills would, of course help ease price rises by reducing costs to consumers,” he added.
Hollands also noted that if Truss wants to “deliver on the NHS” she will need to sort out the pensions tax issue.
“Pensions tax charges have been an ongoing issue flaring up and causing unintended consequences in the NHS, deterring doctors and consultants from taking on extra work at a time when there is a massive backlog arising from the coronavirus lockdowns. Resolving this should be a key priority,” Hollands said.
Truss is set to meet the Queen at Balmoral tomorrow (September 6), and will then return to London to address the nation from Downing Street and announce her cabinet.
jane.matthews@ft.com
