Jeremy Hunt refuses to commit to tax cuts ahead of the 2024 election

Chancellor Jeremy Hunt’s refusal to commit to tax cuts ahead of the 2024 general election has put him on a collision course with Tory MPs on the right.

Hunt refused to bow to Tory pressure to cut taxes, raise corporate tax from 19 to 25 percent, and freeze personal limits in terms of cash rather than increase them with inflation.

That means workers will pay an extra £29.3bn a year in five years’ time as millions more are dragged into paying taxes or higher rate taxes for the first time.

Many senior Tories have spoken out against changes announced in Wednesday’s budget – with Jacob Rees-Mogg deploring the government’s “not good” approach to tax policy.

order from ITV’s Beston Whether to cut taxes before the expected election in 2024 Mr Hunt refused to offer any glimmer of hope for the Tory tax rebels.

“My job is to do the right thing for the economy and then people will see they can trust the governors to grow the economy. This is electoral winnings — I’m not interested in playing games.”

Conservative MPs have urged him to cut taxes in the fall budget later this year, rather than wait until the general election approaches. It is understood that some worry that waiting until 2024 will look too much like electoral bribery.

Former Conservative Party minister David Jones said The Independent: “I would like a corporate tax cut as soon as possible. The Conservatives must be the party of low taxes.”

Former home secretary Priti Patel has pleaded with Mr Hunt to keep the corporate tax increase “under review”, after arguing business “hammer” and seeing “capital flight” from Britain.

Simon Clarke, a Liz Truss loyalist—a leading figure in the conservative group for growth advocating tax cuts—responded to the budget by saying “we desperately need a more conservative stance on taxation”.

It would “stifle job creation”, said Ranil Jayawardena, while fellow low-tax advocate John Redwood said Mr Hunt needed to understand that “while the price is being raised, our competitors are going the other way”.

“As soon as we can link these tax limits to inflation,” former government minister Andrea Leadsom told the Radio Times.

The Office for Budget Responsibility (OBR) said Britain’s overall tax burden is expected to rise to levels not seen since World War Two. The authority also noted “the highest ratio of corporate tax revenues to gross domestic product since the introduction of the tax in 1965.”

The Resolution Foundation, a think-tank, said the UK was heading into a “catastrophic decade” of stagnant incomes and high taxes.

The think tank has warned that taxes as a share of GDP are on track to reach a 70-year high of 37.7 per cent by 2027-28 – roughly equivalent to an extra tax of £4,200 per household in the UK.

Rees-Mogg spoke out against the tax changes

(AFP via Getty Images)

The Chancellor announced two new capital bonus schemes aimed at encouraging investment to invest in IT equipment, machinery and research and development.

But Mr Rees-Mogg said the “salami-chopping” corporate tax hike with capital appropriation schemes “was not a good tax policy approach”.

The former Brexit chances minister told the Radio Times he was “certainly concerned” about a freeze on income tax floors, adding: “High taxes always hurt political parties”.

But Conservative Chancellor of the Exchequer John Glenn has defended the changes. “I am aware of Jacob’s views – in fact, we still have the lowest corporate tax rate in the G-7,” he told GP News.

The budget was welcomed by other Tory MPs, who applauded Hunt’s £5 billion package to expand free childcare, as well as moves to freeze fuel surcharges, extend the energy price guarantee and benefit reform to encourage more people to return to work.

Conservative MP Daniel Kaczynski said: “He just won the next election with a slim majority.”

However, Miriam Keats, the Conservative MP, said Mr Hunt’s childcare support package was “not the right policy” for women or children. “It doesn’t provide a choice. Many moms would like to go back to work — but many moms don’t.”

A Tory MP at the 1922 committee meeting with Mr Hunt last night described the budget as a “victory”.

Another said it was “a good day to party”. “It is clear that there are other ideas in the next budget fire,” the deputy told reporters.

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