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Boris Johnson urged to cut taxes to help get the economy moving after lockdown

Boris Johnson has been urged to cut rates in proposals also sent to Rishi Sunak 
Boris Johnson has been urged to cut rates in proposals also sent to Rishi Sunak
Coronavirus Article Bar with counter
Coronavirus Article Bar with counter

Tory members have urged Boris Johnson to cut business rates and introduce a stamp duty holiday to help revive the economy, as the lockdown measures are lifted.

A report by the Conservatives' official grassroots think tank sets out radical proposals to "get the economy moving again", including a re-think of HS2, and a revival of food and drugs manufacturing in the UK.

It comes as ministers draw up plans for a package of measures to stimulate the economy, amid warnings that unemployment could rise to 10 per cent.

The report by the Conservative Policy Forum (CPF) is now being considered by Downing Street and the Treasury, having been compiled based on video conferencing discussions involving almost 1,000 members. The CPF provides regular reports to No10 which are formally considered by Downing Street.

The latest proposals have also been sent to Alok Sharma, the Business Secretary, and Rishi Sunak, the Chancellor, who is quoted on the CPF website referring to the think tank's "part in coming up with the solutions we need to level up and unleash this country's potential."

The vast majority of members consulted on the Government's approach to the Covid-19 pandemic highlighted "the damaging impact that the current restrictions are having on many areas of our national life", including physical and mental health, and the education of children and students, the report warns. A comment by one local CPF group, which was said to be representative of the overall responses, stated:  “There is a growing risk that more lives will be lost as a result of the lockdown."

John Penrose, the former minister who chairs the CPF, said: "The report contains some really practical, sensible ideas for ministers and school leaders to consider, like letting schools open during August to help students make up the gaps in learning which the lockdown has caused."

UK total virus support cost May 27
UK total virus support cost May 27

Some 74 CPF groups in more than 100 constituencies across the country were asked to come up with policy proposals falling into five broad areas relating to the Coronavirus response - including how the Government could boost the economy once the lockdown measures are lifted.

Many suggestions were volunteered by multiple groups. "It is worth noting that trends identified were of unprompted concerns and therefore do not reflect the greater level of concern that would presumably be found if we were specifically to ask to what extent members shared each particular concern or idea," the report states.

Abround one-in-six groups (15 per cent) suggested reducing business rates to help boost the economy when the current restrictions are lifted, with a similar proportion calling for an extension of the Government's VAT deferral scheme, which currently allows firms to defer payments due between March 20 and June 30.

One-in-twelve (8 per cent) said the Government should introduce a stamp duty holiday, while one-in-three (37 per cent) wanted to “encourage repatriation of manufacturing in sectors such as food, pharmaceuticals and engineering.”

One-in-five (17 per cent) CPF groups said that HS2, the controversial rail line due to stretch from London to Birmingham and the North, and “all large projects must be seriously re-evaluated.”

A summary of the report states: "The vast majority of groups (94 per cent) recognised the damaging impact that the current restrictions are having on many areas of our national life—from individuals’ physical and mental health to the education of school children and university students."

In a letter to CPF members, Mr Penrose said: "We have sent weekly updates of the emerging recommendations to 10 Downing Street, and to individual cabinet ministers too. We wouldn’t normally do this but, because the Covid-19 crisis is so fast-paced, we thought our proposals would be more useful if they gave ministers a real-time perspective instead. Getting feedback has been harder than usual because everyone is working flat out, but it’s been positive whenever we’ve been able to grab some. "

He added: "The strongest and most widely-held conclusion in the entire report, by far, is that Conservative Policy Forum members want the Prime Minister to lift the lockdown as soon as it’s safe. It isn’t just the damage which lockdown is inflicting on jobs, the economy and government borrowing, although they’re bad enough; it’s the effects on mental health, loneliness and domestic abuse as well ...

"There’s a medium term thread of concern about the damage to future life chances of pupils and students who have fallen behind in their studies while learning from home. Conservative Policy Forum members see education as a key route out of poverty, particularly for pupils and students who are vulnerable or who start with less, and want to get schools reopened and learning restarted safely as soon as possible."