Stamp duty is likely to be slashed for millions of Brits as Tories hope to bounce back from two disastrous by-election results, it has been reported.
The Prime Minister, Rishi Sunak, is reportedly looking at raising the threshold for the higher rate of income tax, which would lower payments for five million high earners.
It is believed he could pledge to slash stamp duty or abolish inheritance tax in the next Conservative manifesto in a bid to shore up support for the party.
The Times reported Mr Sunak and chancellor Jeremy Hunt are looking at cutting either inheritance tax or stamp duty on homes.
One senior Tory told the paper that reducing stamp duty would be “aspirational” and boost the economy by making it cheaper for people to move house while appealing to middle-aged voters who have deserted the party.
A Conservative source suggested reducing stamp duty would be “aspirational” and boost the economy by supporting housing market sales.
Official figures released in January found residential stamp duty raised around £10.1billion for the Treasury in 2021/22.
The total is understood to have fallen considerably in recent months.
Sunak’s leadership is facing its most significant challenge since entering Downing Street last year following defeat in Mid Bedfordshire and Tamworth.
Alistair Strathern overturned a bigger majority than any other Labour candidate since 1945 to win ex-Culture Secretary Nadine Dorries’ once-safe seat in a tightly-contested three horse race.
Sarah Edwards’ victory in Tamworth, once the constituency occupied by former Prime Minister Robert Peel, will likely send shockwaves through CCHQ as Tony Blair won the seat just months before his 1997 victory.
Speaking to broadcasters as he prepared to fly back to the UK from meeting leaders in the Middle East, Mr Sunak admitted the by-elections produced “obviously disappointing results” but it was “important to remember the context”.
He said: “Mid-term elections are always difficult for incumbent governments. And of course, there are also local factors at play here.”
A Downing Street spokeswoman declined to comment on the reports and added: “I wouldn’t be able to speculate ahead of a fiscal event.”