Figures show that the Treasury collected £786.6billion tax in the last financial year which is 9.9 percent more than the previous year.
Meanwhile, Government borrowing reached £139.2billion, lower than the £152.4billion predicted by the Office for Budget Responsibility (OBR). The additional £13.2billion saved could be used to help ease the tax burden.
Former Cabinet Minister John Redwood said: “Cut taxes now. We cannot afford high tax rates which cut growth and depress revenue. The UK needs to go for growth, which is the best way to raise more money for public services.”
He continued: “Ireland, with half our business tax rate, collects far more business tax proportionately. The Celtic Tiger is roaring again and so should our economy.”
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Former Business Secretary Jacob Rees-Mogg was outspoken regarding the OBR’s predictions last month. He said: “The failure of the OBR’s forecasts just a few weeks after they were made is damaging the economy.
“Taxes are higher than they need to be, stifling growth because of incompetent forecasters”.
Economist Ruth Gregory, at Capital Economics, said that lower borrowing gave Mr Hunt “more wiggle room to cut taxes or raise spending ahead of the next general election”. She added that she “wouldn’t be at all surprised” to see giveaways in the Autumn Statement.
However, Mr Hunt has suggested that he will stick with his plan to keep debt down. He said: “We stepped up to support the British economy in the face of two global shocks, but we cannot borrow forever.”
So what do YOU think? Should Mr Hunt cut taxes ahead of the next general election? Vote in our poll and leave your thoughts in the comment section below.