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Sajid Javid was poised to cut income tax in Budget before he was forced out

Sajid Javid quit as Chancellor over Number 10's plans to have greater power over the Treasury - SIMON DAWSON/REUTERS
Sajid Javid quit as Chancellor over Number 10's plans to have greater power over the Treasury - SIMON DAWSON/REUTERS

Sajid Javid would have slashed the basic rate of income tax by 2p if he had not resigned from Cabinet in protest at Boris Johnson's "power grab" over the Treasury, he revealed last night.

The former Chancellor told The Times the centrepiece of his Budget, which had been due to take place next month, would have been to cut the basic rate from 20p to 18p, with the intention to hit 15p by the next election.

In his first interview since quitting the Government, Mr Javid urged Mr Johnson and his successor Rishi Sunak not to tear up his fiscal rules, which commit the Government to balancing day-to-day spending by 2030.

The Bromsgrove MP said that such cuts were a "good thing" as Mr Sunak prepares to deliver his first budget on March 11.

"I passionately believe that where you can afford it tax cuts are a good thing and now that we have a majority, we should be much more aggressive on the tax cuts for the long term . . . and go much further than our manifesto," he said.

He did not know if Mr Sunak was planning to deliver the income tax cut, but recommended it be done for the sake of "working people".

Boris Johnson appointed Rishi Sunak, who will deliver his first Budget next month - AFP/GETTY IMAGES
Boris Johnson appointed Rishi Sunak, who will deliver his first Budget next month - AFP/GETTY IMAGES

Mr Javid had also planned to reduce stamp duty, offer tax relief for those who offered capital for a "radical" tax-cutting programme and had proposed a network of fast-charging stations for electric vehicles.

The interview came after Mr Javid said the Prime Minister's move to assume greater control over the Treasury was not in the national interest.

The former chancellor used a personal statement in the Commons to spell out why he felt forced to quit the Cabinet after being given an ultimatum to sack all his special advisers in favour of a joint Number 10-Number 11 team.

He told The Times: "Even if I had entertained the idea for a second I would be absolutely humiliated afterwards."

Downing Street has defended the decision to appoint a joint team of advisers to support the Chancellor.

"The new unit will ensure that the Government works more effectively to deliver the Prime Minister and Chancellor's shared ambition to level up the economy across the UK," a Number 10 spokesman said.

During the election campaign Mr Javid committed to run a balanced budget for current spending within three years.

Officials refused to commit to keeping the same fiscal rules Mr Javid had insisted were of critical importance.

Mr Javid refused to comment to The Times on the PM's senior adviser Dominic Cummings, with whom he repeatedly clashed, and instead focused on Treasury's relationship with Downing Street.

"In every Government there is a natural tension that will exist between No 10 and No 11 and that's not about the personalities, it's there because apart from the Treasury all departments . . . are spending departments," Mr Javid said.

Mr Sunak became Chancellor after agreeing to the conditions imposed by the Prime Minister earlier this month.