The tax cut could now be announced before the summer holidays, Sky News understands.

After gloomy forecasts, ministers were forced to reconsider plans from the Bank of England suggested that the economy is now threatened by a recession.

Inflation is also likely to be higher than expected just six to eight weeks ago, which will put pressure on the government to act earlier than planned.

Additional assistance from the Treasury was expected in August, when the energy regulator announced another increase in the energy price limit.

Sky News understands that ministers now likely have enough information to make decisions before the summer holidays in late July.

This may include additional assistance with energy bills and may include tax cuts, although no decisions have been made.

The change is intended to close assumptions that number 10 and number 11 contradict how and when to act after reports, the Treasury was surprised because Mr. Johnson promised help in the “days” on Wednesday.

However, there is likely to be a skirmish over the scale and nature of the assistance offered.

The Treasury has already offered £ 22 billion in aid this fiscal year, including a reduction in the Universal Credit rate, a reduction in the fuel duty and an increase in the thresholds at which people start paying national insurance.

Some in Whitehall fear that Mr Johnson may agree to further high costs, despite pressure from rising interest payments.

On Tuesday morning – before the Queen’s speech – the government warned that additional spending could boost inflation.

However, today a series of signals came from all over the government that the position is changing.

The first thing this morning was Michael Gove ruled out an emergency budget in the coming weeks, but this afternoon Mr Johnson declined to do so, saying “of course I don’t rule it out”.

The pressure grows during the day when Tory MPs demand tax cuts.

Jake Berry, chairman of the Northern Research Group, told Sky News that Johnson “showed more than a little ankle” privately about his plans to cut taxes.

David Davis told Sky News that he wanted “a significant reduction in taxes – or, preferably, the abolition of the increase in national insurance. And I would add to this, frankly, the abolition of VAT on fuel.”

Some experts warn that lowering the income tax will not help those with the lowest incomes.

https://news.sky.com/story/tax-cuts-could-be-announced-before-summer-recess-sky-news-understands-12610861

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