Jeremy Hunt has given his strongest hint yet the controversial inheritance tax could be set for the scrapheap as the war between the Conservatives and Labour for votes at this year’s election heats up.
The Chancellor, whose words come as a national insurance cut from 12 percent to 10 percent kicks in today, is under pressure from Tory MPs to ease the tax burden on the electorate which is the highest its been since the Second War War.
There is speculation that further tax cuts could be announced in the spring budget on March 6, as Rishi Sunak’s party prepares to fight Labour at the ballot box.
March could be Mr Hunt’s last chance to introduce major tax and spending changes before the General Election and speaking about inheritance tax the Chancellor branded the levy “pernicious” because it harms the reason many people invest, for their children.
Speaking at an event in Crawley this week Mr Hunt hinted taxes could be scrapped, adding: “If we can afford to go further and it’s responsible to do so, we will.”
The main rate of national insurance fell today by two percentage points, from 12 percent to 10 percent. The move was announced in last year’s autumn statement.
Chancellor Jeremy Hunt said the pre-election cut means families with two earners are nearly £1,000 better off. Ministers have previously said cutting the main rate for employees is a tax cut worth £450 for the average employee on £35,400 in 2024/25.
Prime Minister Rishi Sunak, who has said he wants to keep cutting people’s taxes if possible, said it was done because of the “tough decisions” taken by the Government.
In more good news it’s reported Government borrowing is down billions of pounds – meaning the Chancellor could afford to cut more taxes as the amount of spending paying off the national debt falls.
Speaking about the cut in national insurance, the Chancellor said: “Today’s cut in national insurance by 2 percent means that a typical family with two earners will be nearly a thousand pounds better off this year.
“That is really important in a cost-of-living crisis where people have been feeling real pressure on family budgets, but also it rewards work, it’ll bring more people into the labour force and that is good for growing the economy.”
He added: “It’s the start of a process, as Chancellor if I can afford to go further I will, I don’t yet know if I can.”
