Jeremy Hunt promises major tax cuts and sends bold message on pension triple lock

Jeremy Hunt has promised more tax cuts are on the way. (Image: Getty Images)

Jeremy Hunt has promised more tax cuts are on the way as he delivered a rallying cry to boost Tory election hopes.

The Chancellor said it’s the government’s “absolute priority” to bring down the tax burden for millions of families.

His upbeat message comes as Rishi Sunak faces one of the most difficult weeks of his premiership, with Conservative rebels plotting to oust him after the local elections on Thursday.

The Prime Minister has announced a series of policies, including on welfare, Rwanda and defence spending in an attempt to shore up his position.

Speaking exclusively with the Daily Express Mr Hunt struck an optimistic tone as he signalled better days ahead as the economy continues to recover.

In a politically charged interview the Chancellor also warned that Labour couldn’t be trusted with the economy and they have been “forced” to back pensioners.

With the latest 2p cut in National Insurance appearing on millions of workers' payslips from Tuesday, Mr Hunt suggested more could be on the way later this year.

“It's absolutely our priority to carry on bringing down the tax burden. And we can do that because we have taken very difficult decisions to get the economy back on track.

“When I became Chancellor 18 months ago, we had inflation at more than 11%. Now it's fallen to 3.2% and the International Monetary Fund are saying that we will have the fastest growing economy out of France, Germany, Italy, and Japan.

“And that puts us in a very good position to start bringing down the tax burden and also protecting pensioners with a triple lock. And those two things together are our top priority.”

Mr Hunt's upbeat outlook comes as a slew of recent figures show the economy is continuing to grow, following a mini-slump last year.

Experts are now predicting inflation could slide back to the Bank of England’s 2% target by next month.

The Chancellor said he would “welcome” a cut in interest rates from the current 16-year high of 5.25% but cautioned that it’s the Bank’s decision to do it when they think the time is right.

“What I would say is that even before interest rates have been cut, living standards are going up.

“And wages have been increasing faster than inflation for nine months in a row now, living standards are going to go up this year, not least because of the cuts in national insurance.”

Mr Hunt said the road to economic recovery is “never completely simple” but the government’s willingness to “take difficult decisions” has got the economy back on track.

Turning his sights on the Opposition, Mr Hunt warned Labour would undo the economic recovery if they got into government.

“That is now at risk from a future labour government because they've got no answers to the big challenges we face,” he said.
“They can't be trusted to grow the economy.”

The Chancellor also took a swipe at Sir Keir Starmer, saying the Labour leader was “forced” to commit to the pensions triple lock for political reasons.

“The Triple Lock was invented by a Conservative government and championed by a Conservative government and Labour may claim that they are matching our commitment but what pensioners need to ask themselves is would Labour have made this commitment in the first place?, he said.

“It’s a fact that a Conservative government is championing pensioners, that is forcing labour to say they'll do the same.”

Mr Hunt’s remarks came after he met staff at a Morrisson’s supermarket in Peckham, South London on the eve of the most recent 2p cut to National Insurance kicked in for workers.

The main rate of employee NI has been cut for 27 million workers from 12% to 8%, saving the average employee on £35,400 over £900 a year.

An average full-time nurse will save £1053, a typical junior doctor £1508 and an average teacher £1270.

Prime Minister Rishi Sunak said: “At the start of last year I made to pledge to half inflation. And because of the difficult decisions we have taken, inflation has more than halved and we are now able to reward work, and cut taxes for millions of workers who are seeing the benefit in their pay checks today.

“We have now cut National Insurance by £900 because it’s unfair that workers pay double tax on their income. We need to make it much simpler and much fairer and we are going to continue cutting this tax until it’s gone – while continuing to protect pensioners with the triple lock and providing record levels of funding to the NHS.