FORMER Chancellor and Bromsgrove MP Sajid Javid has spoken about the decision by Kwasi Kwateng to keep the 45p higher Income Tax rate after first announcing plans to scrap it.
The initial proposal in his ‘mini-budget’ – to do away with the higher rate for those on more than £150,000-per-year – led to a backlash against the Government and was been blamed as one of the reasons for the Pound crashing against the Dollar last Monday.
It had a negative effect on the market and led to the Bank of England warning interest rates may have to go up, along with several banks and building societies withdrawing mortgage products.
At the Conservative Party Conference yesterday, Mr Kwarteng then U-turned on his original decision, labelling it a ‘distraction’ from the rest of the financial plan.
The Standard asked Mr Javid if he would have scrapped the higher tax rate had he been in his previous role and holding the purse strings.
A spokesperson for the MP said he welcomed the steps the current Chancellor ‘had taken to discuss the move with colleagues and the subsequent outcome’.
Mr Javid has opted not to attend the Conservative Conference this year and there have been reports in the national press that he would not be standing in the next election, which currently looks set for 2024.
A spokesperson for Sajid Javid said: “Sajid plans to stand at the next election and looks forward to the campaign ahead.
“He will be meeting with his constituents and local businesses over the recess and conference period.”
Mr Javid is not the only high profile MP not at the conference – another former Chancellor Rishi Sunak and ex-PM Boris Johnson have also not attended the 2022 event.
