Lord Frost warns Brexit will FAIL unless the UK cuts taxes

Lord Frost warns Brexit will FAIL unless the UK slashes red tape and cuts taxes in blunt message to Rishi Sunak over burden on business

  • Brexit Minister Lord Frost said that the private sector ‘isn’t just a source of taxes’
  • In a warning shot to Rishi Sunak he suggested UK must cut red tape and taxes
  • He said Brexit ‘will not succeed’ if the Government fails to deliver major reforms

Lord Frost has warned Rishi Sunak that Brexit will fail unless the UK cuts taxes and business red tape. 

The Brexit Minister said the private sector ‘isn’t just a source of taxes’ and cannot be treated ‘as just a convenient way of keeping the public sector running’. 

He said the UK ‘can’t carry on as we were before’ the split from Brussels and ‘if after Brexit all we do is import the European social model we will not succeed’.

His comments will be seen as a shot across the bows of the Chancellor who hiked taxes at the Budget in October. 

Lord Frost, the Brexit Minister, said the private sector ‘isn’t just a source of taxes’ and cannot be treated ‘as just a convenient way of keeping the public sector running’

Lord Frost’s comments will be seen as a shot across the bows of Rishi Sunak after the Chancellor hiked taxes at the Budget in October

The UK tax burden is set to rise to the equivalent of 36.2 per cent of gross domestic product by 2026/27 under Mr Sunak’s proposals, according to the Office for Budget Responsibility. 

That will be the highest level seen since Clement Attlee’s post-war Labour government in the early 1950s.  

Lord Frost delivered his tax warning to Mr Sunak as he addressed the Margaret Thatcher Conference on Trade last night. 

Speaking at the event hosted by the Centre for Policy Studies think tank, Lord Frost said: ‘My job is to drive change within government, to push policy in the right direction and to overcome the forces of entropy, of laziness, of vested interest.

‘What Brexit means for the future is dependent on whether we can seize these opportunities. Whether we can liberalise, free up, create competition on our own market, create the conditions for innovation and productivity growth.

‘So I don’t share the views of those who think we can treat the private sector as just a convenient way of keeping the public sector running. It isn’t just a source of taxes. Nor is it a bunch of people who will inevitably do bad things unless the Government keeps a very close eye on them.

‘We can’t carry on as we were before. If after Brexit all we do is import the European social model we will not succeed.

‘We have not successfully rolled back the frontiers of the European Union from Britain with Brexit, only to import the European model after all this time.’ 

The minister said the UK must ‘reform fast, and those reforms are going to involve doing things differently from the EU’. 

The UK tax burden is set to rise to the equivalent of 36.2 per cent of gross domestic product by 2026/27 under Mr Sunak’s proposals, according to the Office for Budget Responsibility

‘If we stick to EU models, but behind our own tariff wall and with a smaller market, obviously we are not going to succeed,’ he added. 

Lord Frost has frequently outlined his belief that the UK must move away from EU red tape now that it has split from the bloc. 

He said he supports ‘divergence – not for the sake of it, but because it is a national necessity’.

‘This project has already begun – though I would be the first to admit there is a lot more to do,’ he said. 

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