Johnson has pledged to slashed income tax for people earning more than £50,000 a year if he wins the leadership contest to succeed Theresa May as Prime Minister.
Boris Johnson’s pledge to cut income tax for high earners would be costly to the Treasury and wouldn’t get through parliament, said Nigel Green, chief executive of financial consultancy deVere Group.
Johnson has pledged to slashed income tax for people earning more than £50,000 a year if he wins the leadership contest to succeed Theresa May as Prime Minister.
But Green said: “I believe that the UK’s likely next Prime Minister’s vow to cut income tax for higher earners is half-baked at best.
“Mr Johnson’s tax cut for higher earners – seemingly a direct plea to those eligible to vote for him to become leader – is ill-thought-through for two key reasons.
“First, there would be a significant net cost for the Treasury; and second, it is unlikely to get through parliament – it’s therefore just Boris virtue signalling to his base.”
He added: “Someone who famously said ‘f**k business’ is arguably not the most economically savvy person, since it’s private sector activity that provides the growth that drives tax revenue for increased spending on the NHS, education, police and other public services.
“Unfortunately, Mr Johnson looks set to destroy the Tories’ greatest claim on the electorate: economic competence.”
Green said he is not usually not against reducing taxation.
He added that the pound is likely to “be delivered another bloody nose” if Johnson because Prime Minister.
This could impact financial services, as foreign investors put their faith in a strong pound.
