JEREMY Hunt faces a confrontation with Tory MPs as he downplays the chances of major tax cuts at the Budget.
The Chancellor insists he wants to “lighten the tax burden” but is dampening expectations over the size of the help for households.
The Chancellor faces a confrontation with several senior Tories after downplaying the chances of major tax cuts at the BudgetAFP – Getty
Alarm bells have sounded among senior Tories after Mr Hunt hinted he would likely have less room for manoeuvre next month than at the autumn statement.
He had said on January 20: “The plan is working. That’s why we need to stick to it. It means cutting taxes, not raising them.”
But he told the BBC today: “It does not look to me like we will have the same scope for cutting taxes in the spring Budget that we had in the autumn statement.
“And so I need to set people’s expectations about the scale of what I am doing because people need to know that when a Conservative government cuts taxes, we will do so in a responsible and sensible way.”
He added: “But we also want to be clear that the direction of travel we want to go in is to lighten the tax burden.”
The Treasury are still waiting for the final forecasts from the Office of Budget Responsibility which will allow him to decide where to spend any spare cash.
But ex-Cabinet Minister Jacob Rees-Mogg last night said: “Targeted tax cuts would boost the economy and, with the OBR being consistently too gloomy, the Chancellor should follow his Tory principles and cut taxes.”
Tory MP Jonathan Gullis backed plans for income tax cuts and fuel duty relief to ease the burden on families.
He said they are needed “for hard-working families and the many small family run businesses who are the backbone of our economy”.
Mr Gullis said this would “unlock growth in our economy, create new jobs, and therefore be able to invest in our schools, NHS, and armed forces”.
It comes after the financial watchdog likened the forecasts last year to a “work of fiction”.
Mr Hunt slammed the organisation’s chair Richard Hughes.
He added: “Those words are wrong and they should not have been said. The Government decides spending plans and spending reviews.
“The next spending review will start in April 2025 and obviously until that point when that spending review is done, we do not publish our spending plans. No government ever has.”
PM Rishi Sunak had said there was “more to come” as he spoke about the new National Insurance cuts.
The International Monetary Fund warned this week the Chancellor should not press ahead with tax cuts but focus on public services.