The government should rely on economic growth rather than tax hikes to fill the Covid black hole in the public finances, the Business Secretary said today.
Kwasi Kwarteng insisted driving growth is the 'best way' of balancing the books amid claims Rishi Sunak is looking at a pensions raid to raise revenue.
But Mr Kwarteng suggested reducing reliefs such as the £1million lifetime allowance was 'not necessarily the way forward'.
And he said he is 'pretty sure the triple lock will stay' - despite alarm in the Treasury that state pensions will rise at least 6 per cent this year due to the warping effects of furlough.
The tensions emerged as Boris Johnson faces Cabinet disquiet over big spending decisions being railroaded through without consultation.
Kwasi Kwarteng (left) insisted driving growth is the 'best way' of balancing the books amid claims Rishi Sunak (right) is looking at a pensions raid to raise revenue
The tensions emerged as Boris Johnson faces Cabinet disquiet over big spending decisions being railroaded through without consultation
Mr Johnson, Mr Sunak and Health Secretary Matt Hancock had been expected to meet tomorrow to discuss proposals on social care - expected to cost another £5billion a year. However, No10 said the meeting will not be happened as billed.
In a round of interviews this morning, Mr Kwarteng was asked about tax rises to cover the huge cost of coronavirus - with the national debt mountain now £2.17trillion.
'I am hopeful as business secretary as you can imagine that we can grow the economy,' he told Sky News.
'That in the past has always been the best way to raise tax revenue… the tax revenue from a thriving economy can pay down some of the debt.'
Asked about the option of a raid on pensions reliefs, he said: 'I don't think that is necessarily the way forward.'
On the state pension, he said: 'Obviously it is a decision of the Chancellor, but I am pretty sure the triple lock will stay.'
Treasury sources said changing pensions tax relief is 'certainly not something the Chancellor is actively looking at'.
Treasury officials are believed to be examining plans to save £4billion by suspending the triple lock on pensions for a year.
However, Mr Johnson wants to keep the lock in place, even
