Chancellor suggests taxes may be cut in Spring Budget

22 Jan 2024

Chancellor Jeremy Hunt has hinted that he may cut taxes in the upcoming Spring Budget.

Speaking at the World Economic Forum's annual meeting in Davos, Switzerland, the Chancellor stated: '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.'

The Chancellor used the 2023 Autumn Statement in November to slash national insurance thresholds by 2%.

Although the Chancellor did not comment on which taxes he might cut, experts predict Mr Hunt will focus on income tax in the Spring Budget. Tax cuts are more likely if inflation falls and interest rates are reduced.

The Chancellor will present the Spring Budget on Wednesday 6 March.