Rare Good News for Sunak

Rishi Sunak has received a rare piece of good news as he is expected to hit the target to halve the inflation by the end of the year. It is set to drop to its lowest level in two years, figures released next week are expected to show. The rate is expected to have fallen to 4.8 per cent in the year to October from 6.7 per cent in September.

Voters Clamor for Tax Cuts

But fresh polling shows the PM faces mutiny in his own back yard, with voters clamoring for tax cuts. Government sources said it was "positive news" but "the fight is not over" as they need to get inflation down to its 2 per cent target as soon as possible. "Inflation is the worst possible tax on our economy and it is particularly bad for people on low incomes and fixed incomes," Harriett Baldwin, chair of the Treasury Committee, said. "That's why it's so important that inflation gets back in its box again."

Former business secretary Andrea Leadsom added: "A drop in inflation makes everyone better off and will be a huge relief to every family."

Gloomier News for PM

However, in gloomier news for the prime minister, voters in his own seat think they are paying too much tax ahead of a crucial Autumn Statement. Fewer than 10 per cent in the new Richmond and Northallerton constituency think taxes will be lower if the Tories win the next election. And 60 per cent now associate the Conservatives with high taxation, according to the poll by Survation.

Pressure for Tax Cuts

Tory MPs are heaping pressure on the PM to cut taxes. Chancellor Jeremy Hunt is expected to announce a £10 billion business tax cut in just over a week. But hard-pressed Brits face disappointment after he ruled out any personal cuts. Former Cabinet Minister David Jones said: "We should put more money in peoples' pockets. I think people would thank the Chancellor for it." An influential bloc of rising stars called the New Conservatives have also released their own tax plan they hope the Chancellor will adopt.

Tory MP Danny Kruger, co-chair, said: "The Government has done well to create some room in the public finances for tax cuts – now is the time to show how we will boost growth and ease the cost of living. "The Chancellor should announce plans to cut taxes on families and small businesses – for instance, by raising the VAT threshold."

Concerns for Drinks Businesses

Drinks businesses also signaled alarm with the Treasury poised to raise alcohol duty for the second time in four months. Stephen Russell, from Copper Rivet Distillery in Kent, warned that if that happens "more pubs and distilleries will close".

Damian Lyons Lowe, Chief Executive of Survation, said: "The Government's upcoming Autumn statement will need to begin offering some financial hope to financially squeezed voters for the party to regain ground in the polls."