The move is bound to draw criticism for supporting wealthy people struggling to make ends meet, with former Conservative prime minister Clark warning that some voters will find it “appalling”.
Saturday 18 November 2023 14:32, UK
The Chancellor warned that “reforming the welfare state” will require “difficult decisions” as he considers introducing controversial tax cuts in next week’s Autumn Statement.
jeremy hunt “There is no easy way to reduce the tax burden,” he said in response to reports that the government was considering cutting inheritance taxes and surcharges on companies.
According to the think tank Institute for Fiscal Studies, tax levels are at their highest level in 70 years. Rishi Sunak There is growing pressure from the Conservative right to bring them down before that happens. next general election.
In a statement next Wednesday, Mr Hunt is said to be considering slashing benefits to find savings, effectively cutting working-age welfare payments for millions of people.
Speaking in Milton Keynes on Saturday, Mr Hunt said: ‘There is no easy way to reduce the tax burden.
“What we need to do is make difficult decisions to reform the welfare state.”
Will the Prime Minister be able to lift his gloom? Watch the Autumn Statement live on Sky News from 11am on Wednesday.
Normally, ministers increase working age allowances based on September’s inflation rate, resulting in an increase of 6.7%.
However, the Prime Minister did not rule out using October’s figures instead, which would result in a rise of 4.6%.
Economists say this amounts to a £3 billion spending cut and will have a big impact on households receiving means-tested or disability payments.
This move will inevitably draw criticism for supporting the wealthy who are struggling to make a living.
Lord Clarke, a former Conservative prime minister, said some voters would find it “appalling”.
Lower inheritance tax (40% levied on estates over £325,000, with an additional £175,000 towards the main residence passed on to lineal descendants) will only help a relatively small proportion of the population. .
Only 4% of deaths in 2020/21 were paid.
Tax reduction options include 50%, 30% and 20% tax cuts, according to the Times.
“We will take the path of tax reduction.”
Mr Hunt appeared to poke fun at the cuts, claiming the UK had reached an “economic tipping point”.
He told the Telegraph this week: “The big message on tax cuts is that there is a path to reducing the tax burden and a Conservative government will take that path.”
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The Conservative Party could pledge to abolish inheritance tax completely ahead of next year’s election, according to reports.
It could cost £7bn a year in the short term, but the Institute for Fiscal Studies predicts tax increases could exceed £15bn by 2033.