Big business backs her vow to cut tax

BUSINESS leaders last night signalled their backing for Britain’s next prime minister to cut taxes.

The issue has become central to the Tory leadership tussle.

And Wetherspoon boss Tim Martin and Pimlico Plumbers founder Charlie Mullins have both indicated their backing for the Foreign Secretary.

Liz Truss wants to scrap a planned hike in corporation tax, ditch a recent national insurance increase and give households a one-year break from paying green levies on energy bills. Her tax-cutting plans add up to £35billion.

Mr Mullins, who sold Pimlico Plumbers for £145million last year, said cuts were needed ‘as soon as possible’ and that Miss Truss’ plans ‘are the right ones’. He added: ‘I don’t trust Sunak. He says we can’t do any cuts.’

Mr Martin, who bought his first pub in 1979 and now runs a chain of more than 850, said: ‘Yes, you can cut taxes to stimulate business – but only if you have a sensible economic plan. Rishi and Boris didn’t really have one. Maybe Liz can put one together.’

Clive Watson, executive chairman of the City Pub group, added: ‘I sort of agree with what Liz Truss says about tax cutting. But I also agree with Rishi Sunak that inflation has to be brought under control.’

Justin King, the former Sainsbury’s chief executive who now serves on the board of

Marks & Spencer, said he backed a national insurance cut – reversing the recent increase ‘at least’. But he added: ‘Otherwise money should be targeted at those that need it most in the cost of living crisis.’

John Longworth, the former British Chambers of Commerce chief who quit to back the Brexit campaign in 2016, said the government must ‘cut ASAP’.

Mr Longworth, who started out as a science business entrepreneur and today leads a network supporting family businesses, said keeping a lid on corporation tax would encourage investment. He also called on the government to scale back fuel duties and green levies as well as cutting income tax.

He said the Treasury already had £30billion of ‘headroom’ because the economy had done better than expected – and that more could be found by shrinking the size of the state.

Warren East, chief executive of aircraft engine giant Rolls-Royce, said his company would work with whoever becomes Conservative leader but that he would ‘of course’ like to see the firm pay less tax.

Business Secretary Kwasi Kwarteng told Sky News yesterday: ‘Boris Johnson indicated a few weeks ago he was looking to make those tax cuts, and Liz will deliver on them.’