Speaking to Sky News on his first full day in the role, he said he would “look at everything” when pressed on his tax plans. “The most important thing is to rebuild the economy after the pandemic and bring back growth and tax cuts,” he told Kay Burley. “We’re delivering the first tax cut in a decade today. I’m determined to do more.” Politics Hub: More resignations to start day as pressure mounts on PM – live updates On the issue of corporation tax, he said he wanted to ensure the UK was “as competitive as we can be while maintaining fiscal discipline”. “There’s nothing off the table,” he said. “I want to be one of the most competitive countries in the world for investment. “I know that boards around the world, when they make investment decisions, are looking at the long term and the only tax they can compare globally is corporate tax.” The government previously said the current 19% corporation tax rate would rise to 25% for large companies next April. Teachers to get pay raises Mr Zahawi also said he had concerns about raising public sector pay across the board in his role as chancellor. “The important thing is to get inflation under control, to be fiscally responsible,” he told Sky News. “The first thing we have to do is make sure we’re really careful, whether it’s public sector wages, that inflation doesn’t continue to be fueled.” While education secretary, Mr Zahawi had called for teachers to get pay rises to avoid a strike and said he would follow through with the proposed 9% increase for those starting this year. Next year, he said they will have a 7.7% increase. Senior teachers would get a 5% raise. Asked about pay rises for other public sector workers, he said: “Obviously I will look at the recommendations from the pay review bodies across the board.” Read more: ‘The public is ready to hear the truth’: Sunak and Javid’s full resignation letters Mr Zahawi’s comments signaled how he might tackle economic policies after he was appointed to replace Rishi Sunak, who resigned on Tuesday. Mr Sunak said that in preparation for a joint speech on the economy with Prime Minister Boris Johnson, it had become clear that “our approaches are fundamentally very different”. He said a low-tax, high-growth economy and world-class public services could not be achieved without “sacrifices” and “difficult decisions”.
