Conservatives Demand Government Rule Out Tax Rises in Upcoming Autumn Budget

Shadow Chancellor Andrew Griffith has called on Prime Minister Andy Burnham and Chancellor John Healey to explicitly rule out tax increases in the government's forthcoming autumn Budget.

Delivering his first major speech since his appointment to the shadow Treasury role by Conservative leader Kemi Badenoch, Griffith warned that British tax rates have escalated into "nosebleed territory." Addressing an audience at a further education college, he insisted that ministers must immediately provide certainty to the private sector by guaranteeing that levies will not be increased.

The shadow chancellor argued that widespread rumours concerning potential tax rises are already harming the economy, warning that such speculation is actively encouraging the nation's wealth creators to flee abroad. He maintained that businesses are already enduring sufficient pressure and cannot absorb further financial impositions.

Throughout his address, Griffith sought to champion independent enterprise, describing company owners and freelancers as "economic heroes." He stated that any competent administration should actively nurture enterprise rather than stifle it, comparing small commercial ventures to fragile green shoots that require protection rather than being trampled upon.

A central plank of Griffith’s address was a pledge to dismantle the existing IR35 tax framework for contractors. Contending that the current rules have crushed the aspirations of independent professionals, the shadow chancellor promised that a future Conservative government would replace the regime with an alternative mechanism that respects self-employed status while strictly targeting genuine tax avoidance.

Griffith also called on the Treasury to pause the implementation of the Making Tax Digital initiative for the self-employed, characterizing the reporting system as a form of "special torture." While acknowledging that the programme had originally been introduced under the previous Conservative administration, he admitted that despite good intentions, the execution of the rollout had left a great deal to be desired.

To further develop the opposition's economic proposals, Griffith announced that he has commissioned a formal review into reducing regulatory burdens for small businesses. The project is being headed by Lord Mackinlay of Richborough, the former Conservative MP for South Thanet, alongside Robert Colvile, the outgoing director of the Centre for Policy Studies think tank.

The clash comes as Chancellor John Healey prepares to deliver his fiscal statement on 28 October amid severe economic turbulence, marked by rising inflation and elevated global energy prices.

Prime Minister Andy Burnham has previously acknowledged that the upcoming Budget will be exceptionally difficult, citing international disruptions caused by conflict in the Middle East. However, Burnham has insisted that his government remains prepared to make tough and necessary economic choices.

Labour issued a robust condemnation of the shadow chancellor's speech, arguing that the Conservatives are prioritizing tax reductions without identifying how they would be financed. A party spokesperson claimed Griffith’s platform threatens hard-won employment rights and fails to specify which public services would face spending cuts to pay for the proposed measures.

The governing party also sought to tie Griffith to the economic record of former prime minister Liz Truss, his former boss. Labour asserted that the Conservatives should be apologizing for previously crashing the economy rather than asking ordinary working people to endure the consequences once again.

The fiscal debate is intensifying across the political spectrum ahead of high-level talks on Thursday, when trade union leaders are scheduled to meet with Chancellor Healey. Major unions, including Unite, are expected to press the Treasury to reverse the ongoing freeze on income tax thresholds.

Griffith's appearance also followed reports in the Mail on Sunday suggesting the Conservatives could formally pledge to scrap inheritance tax ahead of their party conference. When questioned about the policy, Griffith stated that while he would welcome eliminating the duty, any formal commitment must remain strictly contingent on demonstrating how the tax cut would be fully funded.

The shadow chancellor noted that he had recently undertaken a fact-finding mission to Sweden, which abolished inheritance duties in 2005. Rebutting accusations that abolishing the levy would merely serve the richest households, Griffith claimed the reform would stimulate economic growth and argued that the ultra-wealthy already utilize tax planning to arrange their affairs and avoid the charge.

The prospect of cutting inheritance tax has also exposed differing approaches among opposition parties. Speaking at a Reform UK conference fringe event, the party's Treasury spokesman Robert Jenrick pushed back against making the levy an immediate priority, arguing that an administration should not prioritize tax relief for 36,000 wealthy estates over the financial interests of 40 million income taxpayers.