Jeremy Hunt hints at further tax cuts in spring Budget

Jeremy Hunt has hinted at major tax cuts in the next Budget, as the Conservatives ramp up efforts to woo voters ahead of the next general election.

The Chancellor said “the direction of travel” was for the UK to emulate successful low-tax economies, and that those countries were more dynamic” and “more competitive”.

Speaking at the World Economic Forum in Davos, Switzerland, he said: “In terms of the direction of travel we look around the world and we note that the economies growing faster than us in North America and Asia tend to have lower taxes, and I believe fundamentally that low-tax economies are more dynamic, more competitive and generate more money for public services like the NHS.

“That’s the direction of travel we would like to go in but it is too early to say what we are going to do.”

Mr Hunt, who will reveal the Budget on 6 March, also dangled the possibility of holding an Autumn Statement before the next election to further ease taxes.

In comments reported by the Guardian, he said: “The Prime Minister hasn’t decided on the date of the election yet, or if he has he hasn’t told me.

“By law there have to be two fiscal events each year. We will see where we get to after the spring Budget.”

The FT cited a senior government figure who said “squeezing in” an Autumn Statement between the next Tory party conference and a November election would allow the Conservatives to highlight tax cuts at three successive fiscal events.

Mr Hunt’s comments came as the Treasury hinted tax breaks for childcare could be expanded at the Budget to encourage wealthier workers to maximise their earnings and keep lower earning partners in work.

• Additional reporting by PA