Javid would scrap top rate of income tax as Tory leader

SAJID JAVID today says he is prepared to scrap the top rate of income tax as he argues he has the “broadest reach” of any of the candidates for the Tory leadership contest.

In his first interview since announcing his leadership bid, the Home Secretary today tells The Sunday Telegraph that he believes Britain is ready for its first ethnic minority prime minister.

He positions himself as “tomorrow’s leader”, capable of winning over traditional Tory voters while being able to “connect in a very special way with the vast, vast majority of the electorate”.

Mr Javid indicates that he is willing to scrap the 45p rate of income tax to inject more “dynamism” into the economy.

He argues that income tax cuts can pay for themselves, highlighting increased tax revenues in the wake of George Osborne’s decision to scrap the 50p rate of income tax.

He says that while his “priority” is cuts to the basic rate of income tax, he wants to look at higher rates as well.

He says: “If it can be demonstrated that a further cut in the additional rate can raise more taxable revenues, that should be looked at. If I was prime minister, my intent would be to do as much as I can to keep cutting taxes on personal income.”

His position opens a clear divide with Dominic Raab, the former Brexit secretary, who has said he will focus cuts on the basic rate of income tax to help lower paid workers rather than higher earners.

However, Philip Hammond, the Chancellor, today warns leadership candidates that they risk the party’s reputation for “fiscal stability” if they make too many pledges to cut taxes.

Writing in The Telegraph, he says: “If we are tempted down this route, we abandon one of our party’s proudest achievements and most enduring hallmarks: fiscal responsibility.”

Mr Javid adds that he can win the support of younger voters, those from ethnic minority backgrounds and disaffected Labour supporters. “People are also looking for tomorrow’s leader. Something that looks like tomorrow and the future, not the past,” he says.