PM Johnson, finance minister agree to cut personal taxes before next election - newspaper

FILE PHOTO: Britain's Chancellor of the Exchequer Rishi Sunak looks on as Britain's Prime Minister Boris Johnson speaks during a Cabinet meeting of senior government ministers at the Foreign and Commonwealth Office (FCO) in London, Britain, September 1, 2020. REUTERS/Toby Melville/Pool

(Reuters) - British Prime Minister Boris Johnson and Finance Minister Rishi Sunak have agreed to cut personal taxes before the next election, London’s Sunday Times newspaper reported.

Sunak will tell lawmakers and voters that the government must raise money now to pay for the coronavirus bailouts, the newspaper reported.

The finance minister will outline an “arc” on taxation in November’s budget, under which the wealthy will pay heavier taxes, with cuts to follow in 2023 or 2024, the report said.

Sunak has no plans for changes to inheritance tax this year, while Johnson is not prepared to sanction rises in income tax, national insurance or value-added tax, the newspaper reported.

Last weekend, newspaper reports in Britain suggested the finance ministry was looking at sweeping tax increases. Sunak said such reports were speculation.

Reporting by Kanishka Singh in Bengaluru; editing by William Mallard