Rishi Sunak is considering a tax cut for the 5 million highest earners and reducing stamp duty in an attempt to ease the pressure on his leadership after two historic byelection defeats, it has been reported.

The Conservatives may raise the 40% income tax threshold after Labour’s victory in Mid Bedfordshire, Nadine Dorries’ former seat.

The Daily Telegraph reported that surveys have been carried out by Downing Street to ascertain which tax reduction could give the party the biggest political pre-election boost with the 2024 spring budget considered the earliest it could be announced.

The Conservatives are also planning to reduce stamp duty for their general election manifesto next year if the economy has strengthened, the Times reported.

A senior Tory told the Times that reducing stamp duty would be “aspirational” and improve the economy in addition to attracting middle-class voters who had left the party.

Official figures showed that public sector net borrowing was £14.3bn last month, lower than the £20.5bn that had been forecast by the Office for Budget Responsibility.

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