Not just tax cuts needed to boost economy, says Tugendhat

The Tory leadership contender is to set out a 10-point plan to stimulate growth.

Tom Tugendhat (Stefan Rousseau/PA) (PA Wire)

Tory leadership contender Tom Tugendhat has said tax cuts cannot be the “only round in the magazine” in stimulating economic growth.

In a speech on Tuesday, the chairman of the Commons Foreign Affairs Committee will set out his 10-year plan for growth to address the UK’s lagging productivity.

Like the other contenders – apart from Rishi Sunak – Mr Tugendhat is promising immediate tax cuts, but he will also argue for investment in skills and infrastructure as well tax breaks for research and development.

Tax cuts cannot be the only round in the magazine to fire growth in the economy

Tom Tugendhat

Ahead of his speech, Mr Tugendhat, a former soldier, said: “I am committed to reducing the tax burden on people and businesses across the UK.

“It’s great to see colleagues following my lead in arguing for a reversal of the national insurance rise. And only by cutting the cost of fuel, which is hitting drivers in their back pockets, can we drive down price.

“Tax cuts cannot be the only round in the magazine to fire growth in the economy

“A 10-year growth plan will include both targeted and sensible tax cuts along with other measures to stimulate investment, creating jobs and investment in every part of the UK.”