Home Business News The new Chancellor starts his first day in the Treasury and says ‘nothing is off the table’ over ‘possible changes to the tax regime’

The new Chancellor starts his first day in the Treasury and says ‘nothing is off the table’ over ‘possible changes to the tax regime’

6th Jul 22 11:22 am

Following the resignation of Rishi Sunak the Prime Minister has appointed Nadhim Zahawi as the new Chancellor and has started his first day in the Treasury.

Speaking with Kay Burley on Sky News Zahawi was asked if he discussed with Boris Johnson the cutting of taxes, corporation tax and tackling rising inflation.

The Chancellor said, “So it’s my first day in the job.

“The conversation we had is my task is to rebuild the economy and to grow the economy. I will look at everything to make sure that we continue to be on the side of people.”

Zahawi said he will not give in to give public sector pay workers an increase in wages and added that we need to be “really careful” that inflation is not fuelled.

He said, “What we’ve got to do is make sure that we are really careful about… whether it’s public sector pay so that inflation doesn’t continue to be fuelled, that fire mustn’t be fuelled, that will cause even more painful and deeper problems for the people we’re trying to help.”

When asked over any changes to corporation tax, he added, “I will look at everything. Nothing is off the table.”

Julia Rosenbloom, tax partner at Evelyn Partners said, “It’s only Nadhim Zahawi’s first full day in the job as Chancellor but he’s already commented that ‘nothing is off the table’ when it comes to possible changes to the tax regime.

“To help him stamp his mark as Chancellor, it’s quite possible that Zahawi may want to hold an emergency or early Budget where a different direction in tax policy could be announced.

“The government has been under pressure for some time to help families with the cost of living crisis so this is something Zahawi is likely to address in the next Budget, whenever that is held.

“However, we don’t know what, if any changes, the new Chancellor will make to taxes in general, such as IHT, so the need for families to take a close look at their tax planning and take professional advice has never been more important.”

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