Almost half prefer tax cuts to spending: 'Squeezed middle' drives reversal in public opinion from just two years ago
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Almost half of voters want the Government to prioritise cutting taxes over investing in public services, new polling has found.
Two years ago, voters of all parties were more likely to favour spending on public services over taxes.
But in a major shift, voters have now swung towards prioritising tax cuts – according to research by pollsters More in Common.
They found 49 per cent think the Government should prioritise cutting taxes, while 36 per cent would rather ministers invest in public services.
Yet in September 2024, more than half (54 per cent) said investing in public services should be prioritised, while 30 per cent said cutting taxes.
Luke Tryl, director of More in Common, said the 'squeezed middle' of voters had driven the change.
'Two years into a Labour government, there has been a shift amongst the public between their preference in a forced choice for tax cuts versus investing in services.'
He said the support was 'particularly pronounced' among supporters of the Conservatives and Reform UK, but even the Liberal Democrats were 'split down the middle' between tax cuts and investing in public services.
Prime Minister Andy Burnham and Chancellor John Healey visit a homeless charity in London on Monday
Mr Tryl said the 'squeezed middle' had driven the change. Those 'just about managing with the cost of living' prioritised investments in public services in September 2024, 53 per cent to 31 per cent.
But that has now reversed, with 53 per cent prioritising lower taxes, and 32 per cent prioritising investment in public services.
The polling, which comes ahead of Wednesday's Budget, also found that council tax tops the list of personal taxes that voters would like to see cut.
Almost a third (31 per cent) said they would want council tax to be cut, followed by raising the tax-free personal allowance (28 per cent) and fuel duty (24 per cent).
While the appetite for general tax rises is low, More in Common found that taxing vape shops and energy companies would be the most popular.
A levy on banks and a wealth tax of 1 per cent for assets above £10million were also popular measures.
The poll of 3,069 adults also found that Britons want the Government to spend more on defence, and it has moved up the priority list since 2024.
But voters tend to oppose the Government breaking the manifesto pledges on tax to fund defence, instead favouring cutting benefits.
John Healey will deliver his first Budget as Chancellor on Wednesday, against the backdrop of a difficult domestic economic situation, made worse by the international market turmoil caused by the Iran war.
He has limited scope for big giveaways, and is instead considering increasing the surcharge on bank profits from 3 per cent to 8 per cent.
The Chancellor has promised to fill a £4.7billion black hole in Britain's defence investment plan (Dip).
The Dip, one of Sir Keir Starmer's final major announcements as prime minister, promised an extra £15billion of funding for the UK defence sector but only committed £10.3billion to it, leaving the rest for Mr Healey to find.
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