Steve Barclay, the prime minister’s chief of staff, proposed a 20 percent reduction in the tax rate, The times has been told. He suggested that a temporary cut would cut taxes by millions and reduce inflation, which is at 9.1 percent – the highest in 40 years. However, the Treasury Department is concerned about the cost of the move and has warned that it could eventually fuel inflation by boosting the economy. It has also put the point that it would benefit both rich and poor households. Reducing VAT to 17.5 percent will cost the government
