IDS: CUT TAX NOW OR RISK 10-YEAR CRISIS

THE cost-of-living crisis will last a decade if the Government doesn’t cut taxes now, a former Tory leader has warned.

Sir Iain Duncan Smith warned that delaying tax cuts will plunge the UK into recession that would take ten years to recover from.

Sir Iain is one of a number of senior Conservative MPs urging Boris Johnson and Rishi Sunak to do more to stimulate growth.

The Chingford and Woodford Green MP told The Mail on Sunday that increasing interest rates without stimulating growth and failing to cut taxes will plunge Britain into a recession ‘we’ll struggle for a decade to get out of’.

Sir Iain said: ‘If we get this wrong, and we end up in recession and high inflation, then that is going to destroy lots of businesses. We cannot afford that. We have to keep growing, and the only way to do that is to lower tax.’

Mr Sunak pressed ahead with an unpopular National Insurance tax hike just as households felt the full effect of rising inflation and energy bills.

Treasury sources have said fresh tax and spending measures to ease the cost-of-living crisis are unlikely until the autumn.

Sir Iain said last night: ‘The Government has to do it now, not wait till November.’