Jeremy Hunt has compared himself to tax-cutting former chancellor Nigel Lawson as he suggested using his spring budget to “relieve pressure on families”.
Ahead of the budget on 6 March, the chancellor said the government’s plan of “prioritising tax cuts” is working, and they will “stick to it”.
Mr Hunt went on to liken his record to that of the late Mr Lawson, who slashed personal taxation while serving in the Thatcher government.
“Just as Nigel Lawson positioned the City of London for the finance boom in the 1980s, this period of Conservative government has seen the UK positioned for the massive technological boom we’re set to see in the coming years,” he said, writing in the Mail On Sunday.
“The most dynamic economies tend to be places with lower taxes. The lesson is clear: supporting businesses with competitive taxes – not more government spending – is the way to growth,” he added in another part of the article.
“We Conservatives have always known that, of course – but it is worth remembering. The plan is working. That’s why we need to stick to it. It means cutting taxes, not raising them.”
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It comes after The Financial Times reported that Mr Hunt could be handed up to £10bn in extra headroom against his fiscal targets in the Office for Budget Responsibility (OBR) forecasts, paving the way for deeper tax cuts.
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Chancellor aims to cut taxes
And, in November’s autumn statement, the main rate of national insurance was reduced by two percentage points, from 12% to 10%, on 6 January, a change which the Treasury says will make workers £450 better off a year.
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In his own piece in The Sun on Sunday, Rishi Sunak said that “because of the disciplined way we have run the economy” the government was able to introduce this month’s reduction in national insurance contributions.
“Where we can, we will always prioritise tax cuts to put more of people’s money back in their pockets,” the Tory leader wrote.
The announcement from Mr Hunt comes as the battle lines are drawn against Labour ahead of a general election.
Reacting to the article, shadow chief secretary to the Treasury Darren Jones said: “Jeremy Hunt’s words will read hollow to the millions of people who have been left worse off after 14 years of economic failure.
“Prices are still rising in the shops, monthly mortgage bills are soaring and the average family will be £1,200 worse off under the Tories’ tax plan.
“Britain needs change and a Labour government, not five more years of Conservative failure.”
The return on Donald Trump to the G7 was always going to be unpredictable. That it is happening against the backdrop of an escalating conflict in the Middle East makes it even more so.
Expectations had already been low, with the Canadian hosts cautioning against the normal joint communique at the end of the summit, mindful that this group of leaders would struggle to find consensus.
Canadian Prime Minister Mark Carney carefully laid down an agenda that was uncontroversial in a bid to avoid any blow-ups between President Trump and allies, who of late have been divided like never before – be it over tariffs and trade, Russia and Ukraine, or, more recently Israel’s conduct in Gaza.
But discussions around critical minerals and global supply chains will undoubtedly drop down the agenda as leaders convene at a precarious moment. Keir Starmer, on his way over to Canada for a bi-lateral meeting in Ottawa with PM Carney before travelling onto the G7 summit in Kananaskis, underscored the gravity of the situation as he again spoke of de-escalation, while also confirmed that the UK was deploying more British fighter jets to the region amid threats from Tehran that it will attack UK bases if London helps defend Israel against airstrikes.
Image: Canadian PM Mark Carney is greeted by President Donald Trump at the White House in May. Pic: AP
Really this is a G7 agenda scrambled as world leaders scramble to de-escalate the worst fighting between Tel Aviv and Tehran in decades. President Trump has for months been urging Israel not to strike Iran as he worked towards a diplomatic deal to halt uranium enrichment. Further talks had been due on Sunday – but are now not expected to go ahead.
All eyes will be on Trump in the coming days, to see if the US – Israel’s closest ally – will call on Israel to rein in its assault. The US has so far not participated in any joint attacks with Tel Aviv, but is moving warships and other military assets to the Middle East.
Sir Keir, who has managed to strike the first trade deal with Trump, will want to leverage his “good relationship” with the US leader at the G7 to press for de-escalation in the Middle East, while he also hopes to use the summit to further discuss the further the interests of Ukraine with Trump and raise again the prospects of Russian sanctions.
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“We’ve got President Zelenskyy coming so that provides a good opportunity for us to discuss again as a group,” the PM told me on the flight over to Canada. “My long-standing view is, we need to get Russia to the table for an unconditional ceasefire. That’s not been really straightforward. But we do need to be clear about what we need to get to the table and that if that doesn’t happen, sanctions will undoubtedly be part of the discussion at the G7.”
Image: Prime Minister Sir Keir Starmer (R) is greeted by Mark Carney as he arrives in Ottawa ahead of the G7
But that the leaders are not planning for a joint communique – a document outlining what the leaders have agreed – tells you a lot. When they last gathered with Trump in Canada for the G7 back in 2018, the US president rather spectacularly fell out with Justin Trudeau when the former Canadian president threatened to retaliate against US tariffs and refused to sign the G7 agreement.
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Since then, Trump has spoken of his desire to turn Canada into the 51st state of the US, a suggestion that helped catapult the Liberal Party beyond their Conservative rivals and back into power in the recent Canadian elections, as Mark Carney stood on a ticket of confronting Trump’s aggression.
With so much disagreement between the US and allies, it is hard to see where progress might be made over the next couple of days. But what these leaders will agree on is the need to take down the temperature in the Middle East and for all the unpredictability around these relationships, what is certain is a sense of urgency around Iran and Israel that could find these increasingly disparate allies on common ground.
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