On Monday 6 June 2022, a vote took place to decide whether Conservative MPs have confidence in the Prime Minister Boris Johnson. The vote comes after 54 of them had sent letters to Sir Graham Brady saying they no longer had confidence.
What Was the Result of The Confidence Vote?
Johnson won over Tory MPs by a vote of 211-148, however the Conservative party has been left weakened by the vote, leaving many speculating whether or not he will make it to the next election.
In response to the result of the vote, the Prime Minister urged MPs to “draw a line under the issues that opponents want to talk about” and focus on “delivering tax cuts” during a Cabinet meeting the following day.
Johnson told ministers:
“Over the course of the next few weeks, I’m going to ask everybody to come forward with ways in which we cut costs, drive reform, and make sure that we understand that in the end it is people who have the best feel for how to spend their own money rather than the government or the state. And that is our fundamental, Conservative instinct.”
Former Brexit minister Lord Frost said that the scale of the vote was a sign of “the big problem… that we are delivering an economic policy that is not going to deliver prosperity and wealth”.
He called for the previously-announced National Insurance and Corporation Tax rises to be reversed.
Conservative MPs demanded tax cuts as the price of loyalty to Boris Johnson and Chancellor Rishi Sunak promised to use the Autumn Budget to unveil “a range of tax cuts and reforms to incentivise businesses to invest more, train more and innovate more”.
This is likely to include larger capital allowances in order to encourage business investments and replace the super deduction ending in March 2023. The Prime Minister is also expected to extend right-to-buy to housing association tenants.
What Would a Vote of No Confidence Have Meant?
If Boris Johnson had lost the vote, he would no longer be the leader of the Conservative party, however, he would still be Prime Minister until a new leader was elected by the 1922 Committee.
Could Johnson Still Face Another Vote of No Confidence Even if He Wins?
Under the current rules of the 1922 Conservative committee, another vote of confidence cannot be held for another twelve months, however, the committee chair, Sir Graham Brady, is at liberty to change these rules at any time.
When Was the Last Time a Prime Minister Faced a Vote of No Confidence?
In 2018, Theresa May won a confidence vote by 62% – 38%, however, she resigned less than six months later after poor results in the UK’s last European Election.
Expert Help with Your Taxes
For more advice on how you can save money despite the increase in National Insurance and Corporation Tax costs, get in touch with our team at Ryans today to discuss our Corporate Tax Planning services.
With the assistance of our team of expert chartered accountants, you can get a greater understanding of what the changes will mean for you and what steps your business can take to ensure you aren’t affected negatively.