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Chancellor Jeremy Hunt has vowed to tackle the “vicious circle of ever-rising taxes” by revamping public services and the welfare system.

The cabinet minister argued the state needed to become “more productive”, not bigger, as he pointed to the use of artificial intelligence to realise frontline efficiencies and reduce the burden on the public purse.

He also said the government was looking at welfare changes, with 100,000 people a year moving off work on to benefits “without any obligation” to look for a job.

Mr Hunt made his comments as the Conservative Party annual conference gets under way in Manchester this weekend, with some senior party figures demanding tax cuts.

It follows a report published this week that said the Tories will have overseen, between the 2019 election and the next general election, the biggest set of tax rises since at least the Second World War.

Analysis by the Institute for Fiscal Studies (IFS) thinktank said taxes will have increased to around 37% of national income, equivalent to around £3,500 more per household.

But despite the growing pressure, Mr Hunt told The Times newspaper: “We’re not in a position to talk about tax cuts at all.”

He added: “We need a more productive state, not a bigger state.”

“We need a state that doesn’t just deliver the services it currently delivers, but actually improves the services it delivers and recognises that there’s going to be more calls on those services with an ageing population,” he said.

“But we need to find a formula that doesn’t mean that we’re on a vicious circle of ever-rising taxes.”

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More than 30 Tory MPs, including Liz Truss, Prime Minister Rishi Sunak’s short-lived predecessor, and former home secretary Dame Priti Patel, have vowed not to back further tax hikes.

Ms Truss, whose mini-budget 12 months ago triggered market turmoil in response to unfunded tax cuts and ultimately forced her from office, tweeted on Friday: “We should always seek to reduce the tax burden, especially when there’s so much pressure on family budgets.”

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In his Times interview, Mr Hunt also called for a more upbeat tone about the economy and said people needed to “shrug off a bit of the pessimism”.

Mr Hunt, who took over from Ms Truss’s sacked chancellor Kwasi Kwarteng, said: “When I started the job there was a lot of doom and gloom about Britain, our prospects.

“What I have realised now nearly a year on is that there is just far too much declinism.

“If you look at the fundamentals of the British economy we have had our setbacks like everyone else, we are the fastest-growing large European country, not just since the pandemic but since Brexit, since 2010.

“That’s a period when we’ve had a once-in-a-century pandemic, a global financial crisis that we were particularly exposed to, and a 1970s-style energy shock. Despite all of that the British economy has been very resilient.”

His remarks came after it was revealed the UK economy grew faster than had first been thought between January and March this year.

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Data published by the Office for National Statistics shows UK economic growth was 0.3% from January to March, better than the 0.1% first announced.

The revision put the country’s economy ahead of both Germany and France in terms of post-pandemic performance but behind allies such as the United States, Canada, Japan and Italy.

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Crypto influencer found dead in Montreal park months after abduction

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Crypto influencer found dead in Montreal park months after abduction

A 32-year-old woman has been charged with murdering Mirshahi. However, it isn’t confirmed whether the case has ties to his involvement with crypto. 

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Assisted dying opponents believe they have the momentum – as Streeting criticised for ‘overstepping the mark’

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Assisted dying opponents believe they have the momentum - as Streeting criticised for 'overstepping the mark'

Labour MPs who are opposed to legalising assisted dying believe the momentum is swinging behind their side of the campaign, Sky News has learnt.

MPs are currently weighing up whether to back a change in the law that would give terminally ill people with six months to live the choice to end their lives.

At a meeting in parliament on Wednesday, Sky News understands Labour MPs on the opposing side of the argument agreed that those who were undecided on the bill were leaning towards voting against it.

One Labour backbencher involved in the whipping operation for the no camp told Sky News: “The undecideds are breaking to us, we feel.”

The source said that many of those who were undecided were new MPs who had expressed concerns that not enough time had been given to debate the bill.

“They feel they are too new to be asked to do something as substantive as this,” they said.

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Issues that were being brought up as potential blocks to voting for the legislation include that doctors would be able to suggest assisted dying to an ill patient, they said.

The source added: “We were elected to sort the NHS out rather than assisted dying.

“And there is no going back on this – if any doubt, you should vote it out.”

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Labour MP Kim Leadbeater discusses End of Life Bill

The Terminally Ill Adults (End of Life) Bill, put forward by Labour MP Kim Leadbeater, is due to be debated on 29 November, when MPs will be given a “free vote” and allowed to vote with their conscience as opposed to along party lines.

In a recent letter to ministers, Cabinet Secretary Simon Case said the prime minister had decided to “set aside collective responsibility on the merits of this bill” and that the government would “remain neutral” on its passage and the matter of assisted dying.

There has been much debate about the bill since its details were published on Monday evening, including that the medicine that will end a patient’s life will need to be self-administered and that people must be terminally ill and expected to die within six months.

Ms Leadbeater, who has the support of former government minister Lord Falconer and ChildLine founder Dame Esther Rantzen, believes her proposed legislation is the “most robust” in the world and contains safeguards she hopes will “reassure” those who are on the fence.

They include that two independent doctors must confirm a patient is eligible for assisted dying and that a High Court judge must give their approval.

The bill will also include punishments of up to 14 years in prison for those who break the law, including coercing someone into ending their own life or pressuring them to take life-ending medicine.

She has also argued the fact terminally ill patients will have to make the choice themselves and administer the drugs themselves “creates that extra level of safeguards and protections”.

However, several cabinet ministers – including Health Secretary Wes Streeting and Justice Secretary Shabana Mahmood, who would be responsible for the new law – have spoken out against the legislation.

Mr Streeting, who has said he intends to vote against the bill owing to concerns that people might be coerced into taking their own lives, announced a review into the potential costs of assisted dying if it is implemented.

The health secretary warned that a new assisted dying law could come at the expense of other NHS services – and that there could be “trade-offs” elsewhere.

Sky News understands Ms Leadbeater has said she is “disappointed” by Mr Streeting’s comments about the bill.

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Tory MP: ‘Impossible’ for assisted dying bill to be safe

And another Labour MP who is voting for the legislation told Sky News they believed Mr Streeting had “overstepped the mark”.

“I think it’s a bit of a false exercise,” they said.

“It’s definitely going to raise eyebrows – it’s one thing to sound the alarm but he is purposefully helping the other side.”

The MP said that while it did feel “the momentum is moving away from us, a lot of it will come down to the debate and argument in the chamber”.

“Some of the scaremongering tactics might backfire,” they added.

“It’s still all to play for but it’s undoubtedly true the other side seems to be making headway at the moment.”

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A source close to Mr Streeting told Sky News: “Wes has approached this issue in a genuine and considerate way, setting out his own view while respecting others’ views.”

As a private member’s bill that has been put down by a backbencher rather than a government minister, the legislation will not receive as much time for consideration as a government bill – but proponents say it can always be amended and voted down at later stages.

At Prime Minister’s Questions on Wednesday, Tory MP Sir Alec Shelbrooke questioned whether enough time had been set aside to debate the bill and urged Sir Keir Starmer to allow two days, or 16 hours, of “protected time” to “examine and debate” the legislation before the vote.

Sir Keir replied: “I do think there is sufficient time allocated to it but it is an important issue.”

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Assisted dying: Wes Streeting orders review into potential costs of changing the law

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Assisted dying: Wes Streeting orders review into potential costs of changing the law

Health Secretary Wes Streeting has ordered his department to carry out a review of the costs of potentially changing the law to legalise assisted dying.

Mr Streeting, who intends to vote against a landmark bill on the issue, has warned that a new assisted dying law could come at the expense of other NHS services if it is implemented.

It comes as MPs weigh up whether to vote for a change in the law when given the opportunity to do so later this month.

The Terminally Ill Adults (End of Life) Bill, put forward by Labour MP Kim Leadbeater, would give terminally ill people with six months to live the choice to end their lives.

There has been much debate about the bill since its details were published on Monday evening, including that the medicine that will end a patient’s life will need to be self-administered and that people must be terminally ill and expected to die within six months.

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Ms Leadbeater, who has the support of former government minister Lord Falconer and ChildLine founder Dame Esther Rantzen, believes her proposed legislation is the “most robust” in the world and contains safeguards she hopes will “reassure” those who are on the fence.

More on Assisted Dying

They include that two independent doctors must confirm a patient is eligible for assisted dying and that a High Court judge must give their approval.

The Labour MP has argued the fact terminally ill patients will have to make the choice themselves and administer the drugs themselves “creates that extra level of safeguards and protections”.

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MP discusses End of Life Bill

However, several cabinet ministers – including Mr Streeting and Justice Secretary Shabana Mahmood, who would be responsible for the new law – have spoken out against the legislation.

Announcing the review, Mr Streeting said: “Now that we’ve seen the bill published, I’ve asked my department to look at the costs that would be associated with providing a new service to enable assisted dying to go forward, because I’m very clear that regardless of my own personal position or my own vote, my department and the whole government will respect the will of parliament if people vote for assisted dying.”

Ms Leadbeater has said she is “disappointed” with Mr Streeting’s comments – telling The House magazine the health secretary’s comments “suggest he hasn’t read the bill”.

While the health secretary has warned of the potential cost downsides for the NHS, his critics have pointed out there may be potential savings to be made if patients need less care because they choose to end their own lives – something Mr Streeting branded a “chilling slippery slope argument”.

“I would hate for people to opt for assisted dying because they think they’re saving someone somewhere money – whether that’s relatives or the NHS,” he said.

“And I think that’s one of the issues that MPs are wrestling with as they decide how to cast their vote.

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‘Impossible’ for assisted bill to be safe

“But this is a free vote – the government’s position is neutral.”

Speaking to reporters after delivering a speech to the NHS Providers conference in Liverpool, Mr Streeting said there were “choices and trade-offs” and that “any new service comes at the expense of other competing pressures and priorities”.

“That doesn’t mean people should vote against it on that basis,” he said.

“People need to weigh up this choice in the way that we’re weighing up all these other choices at the moment.”

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MPs will debate and vote on Ms Leadbeater’s Private Member’s Bill on 29 November, in what will be the first Commons vote on assisted dying since 2015.

The government has given MPs a “free vote” on the issue, meaning they will be able to vote according to their conscience and without the pressure to conform to party lines.

In 2015, a bill by former Labour MP Rob Marris that would have made it legal for the terminally ill to end their lives was defeated in the Commons by 330 votes to 118.

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