Autumn Statement to Introduce Cuts, Aiming for Lowest Income Tax in Modern History
Chancellor Jeremy Hunt intends to “cut taxes quickly” in an effort to win back disgruntled Tories and ensure victory in the next general election, according to allies. The announcement comes after the Conservatives suffered a devastating loss in the local elections.
Hunt has faced harsh criticism from Conservative MPs, particularly supporters of Liz Truss, for raising taxes and damaging economic growth. The Budget sparked outrage with a 5p in the £1 increase in Corporation Tax, impacting most UK businesses and discouraging investment and expansion.
A source close to Mr Hunt revealed to Express.co.uk that the Chancellor is “going against all his instincts” by maintaining taxes at their highest levels in modern British history. The source stated: “Jeremy [Hunt] wants to cut taxes and cut them quickly. He is very clear about that and is not happy with what he feels he has to do at the moment.”
Hunt reportedly informed several allies this week that he felt forced to keep taxes high due to the need for market stability following Liz Truss’ mini-budget. “But the plan is to start cutting taxes quickly. He intends to bring in tax cuts in the Autumn and then there will be a lot more in the spring next year,” the source added.
These tax reductions, including income tax cuts, are expected to precede the general election in Autumn next year. The goal is to put more money in people’s pockets and create a positive atmosphere in the country.
Over the summer, Hunt expressed a desire for Britain to eventually have the lowest level of income tax in modern history, blaming the COVID pandemic and lockdown costs for the current tax hikes.
During the leadership election, Hunt campaigned to lower Corporation Tax to 15p in the pound, despite recently raising it to 25p. One ally claimed the Chancellor only proceeded with the Corporation Tax rise because the Prime Minister insisted on it.
With the Tories losing over 1,000 seats in the local elections and trailing Labour in the polls by 15 points, the party is under immense pressure to reverse its fortunes.