Chancellor rebuked by stats authority over tax-cutting claims

EMBARGO: Immediate Release

• Stats watchdog response to Liberal Democrats rebukes the Chancellor, warning that the “average person” was likely to believe overall tax burden was falling 

• The Liberal Democrats have demanded that the Chancellor comes clean and apologises to voters

The Chair of the UK Statistics Authority, Sir Robert Chote, has rebuked Chancellor Jeremy Hunt’s claims that his Government “brings down taxes”, highlighting that cuts to National Insurance will be “offset” by the freeze on income tax thresholds. 

The intervention comes after Liberal Democrat Treasury Spokesperson, Sarah Olney MP, wrote to the UKSA about the Chancellor’s claims in the Spring Budget that “a Conservative Government brings down taxes”.

Responding to the letter, Sir Robert Chote poured cold water on the Chancellor’s remarks, pointing out that “cuts to national insurance rates will be offset by other policy decisions such as freezing national insurance and income tax thresholds.” 

Sir Robert also warned there was a risk that “the average person would be likely to interpret the Chancellor’s claim to “bring down taxes” as referring to the overall tax burden.”

This is the second time the stats watchdog rebuffs the Government in recent months, having previously said Prime Minister Rishi Sunak “may have undermined trust” in the Government by claiming his administration had “reduced debt.”

Last March, figures from the independent Office for Budget Responsibility revealed that the Government was raising people’s taxes to the tune of £41bn a year by 2028-29 through the freeze on income tax thresholds - almost double the £21bn handed back by changes to National Insurance thresholds. 

Liberal Democrat Treasury Spokesperson, Sarah Olney MP said:

"Jeremy Hunt has been caught out for misleading the public after years of unfair tax hikes and dragging millions into higher rates of tax.

“This is desperate stuff from a desperate Chancellor and it is right that he has been called out on it. Jeremy Hunt should apologise to voters for these misleading claims. 

"It is no wonder that so many voters across the Blue Wall including in the Chancellor's own seat are switching to the Liberal Democrats this election." 

ENDS

Notes to Editor:

The letter sent to the UKSA from Sarah Olney MP can be seen here.

The letter response from UK Statistics Authority Chair, Sir Robert Chote, can be found here. 

According to the OBR (p.68), by 2028-29, frozen income tax and National Insurance thresholds will be raising £41.1bn a year, while reductions to National Insurance will be handing back just £21.4bn a year.