The former Defence Secretary, Liam Fox, will lay out proposals for a radical revamp of the economy based on lower taxes and a smaller state. They include a call for capital gains tax to be cut temporarily to zero and a wholesale rethink about the taxation of earnings and savings.
In an address to the Institute of Economic Affairs, he will deliver an implicit rebuke to the Chancellor for failing to do more to cut the “bloated State” inherited from Labour.
“I believe that the country will be at its best when the Government is small and people are left to enjoy the fruits of their own labour,” he will say. “I believe that in leaving money in people’s pockets, economic activity will follow. People will buy houses, invest for their future or just go shopping. Whichever is the case, it is creating a society that is sustainable for the future in the way that our current — welfare-dependent and debt-ridden — economy is not."<