Jeremy Hunt hints at tax cuts ahead in March Budget, as he admits voters are 'angry'

18 January 2024, 21:58

Jeremy Hunt
Jeremy Hunt. Picture: Getty

By Kit Heren

Jeremy Hunt has hinted that the Budget in March could contain tax cuts, as he said that he would "prioritise economic growth".

Listen to this article

Loading audio...

The Chancellor said that he wanted the UK's "direction of travel" to follow countries whose economies are growing faster than the UK, which tend to have lower taxes.

Mr Hunt told an audience at the World Economic Forum in Davos on Thursday that countries with lower taxes were "more dynamic" and deliver more money for public services.

The Spring budget is set to take place on March 6, with a general election almost certainly taking place later this year.

Cutting taxes could deliver the Conservatives a boost as they seek to fend off Sir Keir Starmer's resurgent Labour party, who are significantly ahead in the polls.

Read more: Jeremy Hunt will only cut more taxes if 'affordable and responsible' despite Tory hopes of pre-election boost

Read more: 'Put aside defeatism': Chancellor tells LBC he wants lower income tax

Mr Hunt's Spring Budget is set to take place on March 6
Mr Hunt's Spring Budget is set to take place on March 6. Picture: Alamy

Mr Hunt admitted that some voters were "very angry" about the level of taxation - the highest as a percentage of GDP since records began.

This is largely due to tax brackets being frozen despite rising wages and inflation, which pushes more people into higher tax bands than before.

Mr Hunt told the Davos audience: "In terms of the direction of travel we look around the world and we note that the economies growing faster than us in North America and Asia tend to have lower taxes, and I believe fundamentally that low-tax economies are more dynamic, more competitive and generate more money for public services like the NHS.

"That's the direction of travel we would like to go in but it is too early to say what we are going to do."

Last week, the Chancellor told LBC's Paul Brand that he would only make further cuts in March if it was "affordable and responsible".

He said that"we can't get back to pre-Covid levels of tax in one go" but that his two percentage point cut to National Insurance should make a "big difference to family budgets when people have been feeling a lot of pressure".

Chancellor Jeremy Hunt on taxes

Mr Hunt added: "I can assure you that we will prioritise economic growth." He added that he was confident that inflation would continue to fall.

"We are making faster than expected progress and bringing inflation down and I’m confident we’re heading in the right direction," he said.

Labour's Shadow Chancellor Rachel Reeves also hinted that she would look to cut taxes. "My instinct is to have lower taxes," she told the Telegraph on Wednesday.

Rishi Sunak said earlier this year that his "working assumption" was that the election would take place at some point in the autumn, but was not more specific.

Mr Hunt said he did not know when the general election would be yet.

The Chancellor said: "The Prime Minister hasn't decided on the date of the election yet, or if he has he hasn't told me.

"By law there have to be two fiscal events each year. We will see where we get to after the spring Budget."

More Latest News

See more More Latest News

Fighting broke out in Amsterdam on Thursday night

Emergency measures in Amsterdam after Israeli football fans targeted by pro-Palestine 'hit-and-run attacks'

Boris Johnson has claimed that Donald Trump would "certainly" do a trade deal with the UK

Trump will 'certainly' do a UK trade deal, Boris Johnson claims - as Farage urges Starmer to 'roll out the red carpet'

Russian TV aired nude photos of Melania Trump

Russian state TV airs nude photos of Melania Trump as presenters congratulate her husband on election victory

Prince Andrew is said to have found his own money to stay in the Royal Lodge

Prince Andrew 'finds money to stay in Royal Lodge' after being cut off by Charles when King's 'patience ran out'

Chris Hall, 48, was killed after the limb of a tree fell on him in a park in Chesire

Council fined £500,000 for 'wholly avoidable' death after tree branch fell and killed man walking dog in park

Whitworth Hall at the University of Manchester. Oxford Road, Manchester, England, United Kingdom.

Man arrested after bust of Israeli leader stolen from the University of Manchester and defaced

The mother of 13-year-old Palestinian Abdel Rahman Abdullah, who was shot dead by the Israeli army during clashes at a refugee camp near Bethlehem

Nearly 70% of Gaza dead are women and children, UN reports

m

Prince Harry and Meghan make first joint appearance in months in video about violence against children online

One of the headstones

Mourning families find 'disgusting' health and safety stickers put by local councils on gravestones

Mohamed Al Fayed

Met Police refer themselves to watchdog over handling of sex assault claims against Mohamed Al Fayed

Fred Trump III said his uncle Donald had said he should let his disabled son die

Donald Trump's estranged nephew claims president-elect said he should 'let his disabled son die'

Terry Moore

'Britain's Tiger King' rushed to hospital after being mauled by his own big cat

Donald Trump.

Iranian assassination attempt against Donald Trump thwarted by FBI

UK fire engine (file)

Two dead as blaze rips through Coventry home in early hours of morning

Amanj Hasan Zada has been jailed for 17 years

Iranian man dubbed 'the best smuggler' jailed for 17 years after arranging small boat crossings

Watch the moment this phone snatcher was caught by police in Oxford Circus

WATCH: Dramatic moment undercover police officers arrest phone snatcher in Oxford Circus