Chancellor says ‘everything on the table’ in autumn statement as he promises to remove tax ‘barriers’ for business
Chancellor Jeremy Hunt says “everything is on the table” when it comes to tax cuts in this week’s autumn statement.
Speaking to Sky News’ Sunday Morning with Trevor Phillips, Mr Hunt said his speech on Wednesday would focus on growth, and pledged to “remove the barriers that stop businesses growing”.
Politics live: Chancellor facing questions ahead of autumn statement
But he did not rule out other rumours that have been swirling around Westminster this weekend, including a reduction in inheritance tax and changes to personal taxation.
“I am not going to talk about any individual taxes as that will lead to even more feverish speculation,” he said.
But the chancellor admitted the tax burden is “too high” and the government “wants to bring it down”, with lower tax “essential to growth”.
“I think it is important for a productive, dynamic, fizzing economy that you motivate people to do the work [and] take the risks that we need,” he added.
Labour: Tax cuts must be ‘affordable’
Labour’s shadow chancellor Rachel Reeves told Trevor Phillips she would welcome tax cuts for working people, but called on the government to “explain where the money is going to come from”.
She added: “Last year when the Conservatives had a load of unfunded tax cuts, it crashed the economy [and] sent mortgage rates soaring.
“So I want taxes on working people lower, but it has to be affordable.”
But the head of the Institute for Fiscal Studies, Paul Johnson, warned there was “no headroom there at all” for major tax cuts due to the poor state of public finances.
Can the chancellor lift the gloom? Watch live coverage on Sky News of the autumn statement from 11am on Wednesday.
Shadow chancellor Rachel Reeves said any plan for tax cuts ‘has to be affordable’
Under the Tories, tax levels are at their highest since records began – with Ms Reeves pointing to 25 hikes since 2019 – and backbench MPs have been demanding cuts from the government ahead of the next election.
But Mr Hunt and Prime Minister Rishi Sunak have been resisting the calls for the past 12 months, saying their priority was to lower inflation – which also stood at a record high of 11% last autumn.
Earlier this week, the Office for National Statistics confirmed that figure had now dropped to 4.6%, seeing the Conservative pledge to halve inflation by the end of the year met.
But it still sits at more than double the Bank of England’s target of 2%.
The chancellor reiterated his pledge to not introduce any tax cuts that “fuel inflation”, saying: “We have done all this hard work we are not going to throw that away.”
But he did not write off the prospect of lowering taxes in the autumn statement, saying the Conservatives “need to show there is a path to a lower tax economy”.
“We believe lower taxes are essential for a high growth economy, so we do want to bring down the tax burden, but we will only do so responsibly,” he added.
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Sky News understands Rishi Sunak and Jeremy Hunt are holding multiple meetings over the weekend ahead of Wednesday’s autumn statement
Mr Hunt indicated the focus during Wednesday’s speech would be on business, calling it “an autumn statement for growth… to turn a corner” on the economy.
“If we are going to embrace those opportunities we need to remove the barriers that stop businesses growing and that’s why this autumn statement will be focused on growth,” he said.
But pushed on whether there would be changes to either National Insurance or income tax, he hinted at a longer wait, saying: “If you want to bring down personal taxes the only way to do that sustainably is to spend public money more efficiently… Rome wasn’t built in a day, these things take time.”
Speaking about the current economic situation to Trevor Phillips, the IFS’ Mr Johnson said there had been “some good news” for the Treasury this year as tax revenues were “coming in more strongly” – meaning the government would have to borrow less to fund public services.
And that in turn would help the chancellor meet his target to have the country’s debt falling in the next five years.
But, the economic expert added: “At the budget back in March [debt was forecast to be] falling by £6bn in five years.
“Now, £6bn in five years out of a £1tn budget is nil. I mean, there is no headroom there at all… and that’s probably roughly where he’s going to be still [on Wednesday].”
The IFS chief said “chancellors can always find a few billion in a budget or an autumn statement if they want to”, but the public finances are “in such a mess” due to the amount being spent on debt interest.
“But there’s always choices,” he added.
Mr Johnson urged that choice not to be cutting inheritance tax, however, adding: “I think it would be a very odd statement of priorities that you’re going to hit hard if they earn the money but help them out if they inherited it.”
Sky News understands multiple meetings are taking place this weekend between Mr Hunt and Mr Sunak to finalise the details ahead of Wednesday’s announcements.
The first-ever Capture case has been delayed at the Court of Appeal as the Post Office asks for an extension to respond, Sky News has learned.
Pat Owen, a former sub postmistress who has since passed away, was convicted of stealing in 1998 based on evidence from computer software.
The system, known as Capture, was used in up to 2,500 branches in the 1990s, before the infamous Horizon system was introduced.
Hundreds of sub-postmasters were wrongfully convicted between 1999 and 2015 as part of the Horizon scandal.
Earlier this year, Sky News unearthed a 1998 report showing the Capture software was also faulty.
That report, commissioned by the solicitors acting for Mrs Owen in 1998, was served on the Post Office and may never have been seen by the jury in her case.
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‘All we want is her name cleared’
Ms Owen was given a suspended prison sentence and fought to clear her name subsequently – but died in 2003.
Her case was referred by the Criminal Cases Review Commission (CCRC) to the Court of Appeal in October.
The Post Office had until 5 December to respond to papers put forward by Mrs Owen’s defence team but they have now asked for an extension until 30 January.
Ms Owen’s daughter, Juliet Shardlow, described the family’s suffering at the lengthening wait.
“I need to emphasise the profound impact the ongoing delay is having on our family,” she said.
“The continuous uncertainty only compounds our heartache, stress, and anxiety.
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Alan Bates: New redress scheme ‘half-baked’
“It has become the last thing I think about before I go to sleep and the first thing when I wake up.
“We have waited 27 years for justice, and this additional wait feels never-ending.”
Ms Owen’s case is the first time a conviction based on Capture has reached the Court of Appeal since the scandal was exposed.
Read more from Sky News:
Corporate manslaughter charges considered in Post Office scandal
21 ‘Capture’ cases investigated for miscarriages of justice
Lawyers have said that if Ms Owen is exonerated posthumously, it may “speed up” the handling of others.
CCRC chair Dame Vera Baird also told Sky News in the summer it could be a “touchstone case” for other victims.
The CCRC is also continuing to investigate around 30 other “pre-Horizon” convictions.
A Post Office spokesperson said: “We have sought an extension of time to fully consider and respond to the CCRC’s Statement of Reasons in Ms Owen’s case.
“We deeply regret the impact our request for further time will have on Ms Owen’s family.
“We have a duty to carefully consider the evidence presented in the Statement of Reasons submitted by the CCRC and do everything we can to fully assist the Court when it considers this conviction.”
Meanwhile, the first-ever redress scheme for victims of the Post Office Capture IT scandal was launched this autumn.
The Capture Redress Scheme will provide payments of up to £300,000, and more in “exceptional” cases, to former postmasters who suffered financial losses.
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