David Davis says IR35 “is causing huge damage” to the UK, in an article criticising the failings of the Government and Treasury
David Davis, MP for Haltemprice and Howden, has called for the Conservative party to “change gear” and start fixing mistakes made under Boris Johnson – including the implementation of IR35 reform in the private sector.
Davis has previously criticised IR35 and warned the government about its implementation in the private sector. Writing in The Telegraph, he called for the end of IR35: “The Treasury’s IR35 policy is causing huge damage to small businesses in every part of the UK. That must be shelved,” he wrote.
Mr Davis has previously opposed IR35, having tabled an amendment to the Finance Bill which would have seen the implementation of IR35 reform in the private sector delayed by two years.
In his article, Davis also called for wider tax cuts to boost growth and reduce the impact of the cost of living crisis.
“All increases to personal taxes must be scrapped, that includes [former Chancellor] Rishi’s National Insurance tax hike,” he wrote.
Bank of England and Treasury under fire
Mr Davis criticised the Bank of England and the Treasury as “slow and timid” in their response to inflation, calling for a BoE Governor “who better understands the monetary landscape”.
He also blamed the Treasury for “mistakes on the fiscal front” that have “helped trigger the recession we are now facing”, and called for a quick rise in interest rates in response.
Setting out the standard he expects to see from the next Prime Minister, Mr Davis called for tax cuts across the board – including shelving the planned Corporation Tax increase – “to encourage investment… and help ordinary families cope with the cost of living [crisis]”.
Change in leadership: a change in direction?
Mr Davis’ continued criticism of IR35 and the tax landscape comes against the backdrop of the Conservative Party leadership race.
There are four candidates vying for the Leadership position, including former Chancellor Rishi Sunak – who failed to address IR35 at his last Spring Budget – and Penny Mordaunt, who has already pledged to cut fuel duty, and may offer further tax cuts to compete with Liz Truss and Kemi Badenoch, who have promised the same.
David Davis has backed Ms Mordaunt for the leadership, in line with his suggestion in The Telegraph that the next party leader and Prime Minister “must lead a truly Conservative government that champions low tax, low regulation and more.