Jeremy Hunt has told Tory allies this week that he wants to “cut taxes quickly” and will start with the Autumn statement this year. As the Conservatives faced crushing results in the local elections, sources close to the Chancellor says he has a plan to win voters back.
The Chancellor has been bitterly criticised by Conservative MPs, particularly supporters of Liz Truss, that he has increased taxes and harmed economic growth.
At the Budget, he faced fury over a 5p in the £1 rise in Corporation Tax which hits most businesses int he UK and was seen as a major disinsentive to invest in Britain or expand companies.
But a source close to Mr Hunt told Express.co.uk that the Chancellor is “going against all his instincts” with keeping taxes up at a level which is the highest in modern British history.
The source said: “Jeremy [Hunt] wants to cuts 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.”
The source went on: “He [Hunt] told a number of us this week that he had felt he was forced to keep taxes high at the moment because of the need for stability with the markets after [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 moves will come ahead of an expected general election in Autumn next year with the hope that income tax cuts in particular will put money into people’s pockets and create a more positive atmosphere in the country.
Over the summer Mr Sunak said he wanted Bitain to eventually have the lowest level of income tax in modern history but blamed the covid pandemic and lockdown costs for having to rauises taxes now.
Mr Hunt meanwhile campaigned int he leadership election to bring Corporation Tax down to 15p in the pound even though he has just increased it to 25p.
One ally of Mr Hunt has claimed that the Chancellor only went ahead with the recent Corporation Tax rise becaue the Prime Minister had insisted on it.
But with th e Tories losing mkore than 1,000 seats in the local elections this week and trailing Labour in the polls by 15 points then the party is under pressure to reverse its fortunes.