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Chancellor Jeremy Hunt has refused to commit to tax cuts ahead of the next election, despite growing calls from inside his party.

His cabinet colleague Michael Gove told Sky News on Sunday that he wanted to see “the tax burden reduced” by the time the public goes to the polls.

But speaking to Kay Burley this morning, Mr Hunt said “big tax cuts now… would be inflationary”, and “nothing is going to compromise [the] battle” to bring that figure down.

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Asked if we could see a headline tax cut before the next election, he said: “It’s very difficult to see having that kind of tax cut this year.”

And pushed on whether he would commit to the pensions triple lock at the next election, Mr Hunt said – after a long pause – that the decision would come in the autumn statement.

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Tories battle over taxes

The comments came ahead of the chancellor’s speech to the Conservative Party conference in Manchester this afternoon, where he is due to announce a rise in the living wage and stronger benefits sanctions.

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But it also came before the return of former prime minister Liz Truss to the annual event, where she will speak at the Great British Growth Rally to demand a cut in corporation tax – a policy that was part of her disastrous mini-budget just 12 months ago.

Some Conservative backbenchers have long called for tax cuts from Number 11 as the current burden on households is at a 70-year high.

But the row reignited on the first day of this year’s conference after Mr Gove’s remarks to Sky News – followed by Prime Minister Rishi Sunak’s refusal to sign up for the pledge.

Pushed on whether there would be tax cuts ahead of the next election, Mr Hunt said: “I would love to see tax cuts for working people and obviously tax cuts for everyone.

“[However], if we gave big tax cuts now, that would put more money in people’s pockets [but] that would be inflationary. And right now, we are in a big battle which is succeeding to bring down inflation.”

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The chancellor echoed the comments from Mr Sunak that “the fastest thing we can do” to help households is to reduce inflation, before adding: “Do we want to move to lower taxes as soon as we can? Yes, but it means difficult decisions and we’re prepared to take those difficult decisions.”

But like the prime minister, he would not commit to a timetable, saying he did not have “a crystal ball” and it would be wrong to “make a prediction one way or the other”.

“I can’t tell you what the state of the economy is going to be going forward,” said Mr Hunt. “What I can say is that it’s very difficult to see having that kind of tax cut this year.

“Public finances don’t allow that. Our interest payments are predicted to be much higher than at the spring budget and it would be inflationary.

“But if you’re asking me, is it something that I’m willing to put us on a path to doing, I do want us to have lower taxes and I’m prepared to take the difficult decisions to make that happen”.

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Most RWAs remain isolated and underutilized instead of composable, DeFi-ready building blocks. It’s time to change that.

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Heidi Alexander says ‘fairness’ will be government’s ‘guiding principle’ when it comes to taxes at next budget

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Heidi Alexander says 'fairness' will be government's 'guiding principle' when it comes to taxes at next budget

Another hint that tax rises are coming in this autumn’s budget has been given by a senior minister.

Speaking to Sunday Morning with Trevor Phillips, Transport Secretary Heidi Alexander was asked if Sir Keir Starmer and the rest of the cabinet had discussed hiking taxes in the wake of the government’s failed welfare reforms, which were shot down by their own MPs.

Trevor Phillips asked specifically if tax rises were discussed among the cabinet last week – including on an away day on Friday.

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Tax increases were not discussed “directly”, Ms Alexander said, but ministers were “cognisant” of the challenges facing them.

Asked what this means, Ms Alexander added: “I think your viewers would be surprised if we didn’t recognise that at the budget, the chancellor will need to look at the OBR forecast that is given to her and will make decisions in line with the fiscal rules that she has set out.

“We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.”

Ms Alexander said she wouldn’t comment directly on taxes and the budget at this point, adding: “So, the chancellor will set her budget. I’m not going to sit in a TV studio today and speculate on what the contents of that budget might be.

“When it comes to taxation, fairness is going to be our guiding principle.”

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Afterwards, shadow home secretary Chris Philp told Phillips: “That sounds to me like a barely disguised reference to tax rises coming in the autumn.”

He then went on to repeat the Conservative attack lines that Labour are “crashing the economy”.

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Chris Philp also criticsed the government’s migration deal with France

Mr Philp then attacked the prime minister as “weak” for being unable to get his welfare reforms through the Commons.

Discussions about potential tax rises have come to the fore after the government had to gut its welfare reforms.

Sir Keir had wanted to change Personal Independence Payments (PIP), but a large Labour rebellion forced him to axe the changes.

With the savings from these proposed changes – around £5bn – already worked into the government’s sums, they will now need to find the money somewhere else.

The general belief is that this will take the form of tax rises, rather than spending cuts, with more money needed for military spending commitments, as well as other areas of priority for the government, such as the NHS.

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