Jeremy Hunt: Less scope for tax cuts in Budget

Jeremy Hunt has said there is likely to be less scope for tax cuts in the March Budget than there was last autumn. In last year's Autumn Statement, when the government sets out its tax and spending plans, Mr Hunt announced a cut to the main rate of National Insurance from 12% to 10%. However, the Times newspaper reported that he had told a cabinet meeting this week that "Major structural weaknesses" in the economy, including low productivity, meant there was likely to be less headroom for tax cuts in the upcoming Budget on 6 March. "It doesn't look to me like we will have the same scope for cutting taxes in the spring Budget that we had in the Autumn Statement," Mr Hunt said. Pressed over whether this would disappoint some Conservative MPs, who have been calling for big tax cuts ahead of an expected general election this year, Mr Hunt said: "It is not Conservative to cut taxes by increasing borrowing because all you're doing is cutting the taxes paid by people today in exchange for increasing the taxes paid by our children tomorrow." Mr Hunt said he agreed with the IMF that "Untargeted tax cuts that are just crowd pleasers" are not a good idea.

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