Jeremy Hunt has compared himself to former tax-cutting chancellor Nigel Lawson, as he joined Rishi Sunak in teasing further potential cuts in the spring budget.
Writing in the Mail on Sunday, the chancellor drew comparisons with the late Lawson, who was known for slashing personal taxation while serving in the Thatcher government.
Hunt said: “Just as Nigel Lawson positioned the City of London for the finance boom in the 1980s, this period of Conservative government has seen the UK positioned for the massive technological boom we’re set to see in the coming years.”
Lawson was appointed chancellor of the exchequer in 1983, delivering six budgets until his resignation in 1989. He began a tax-cutting process in 1986 that intended to cut the basic rate of income tax, initially from 30% to 29%. Two years later, the rate was cut to 25%.
Hunt’s commitment to cutting taxes has been echoed by the prime minister, who promised to “always prioritise tax cuts to put more of people’s money back in their pockets”.
Writing in the Sun on Sunday, Sunak said the government had been able to introduce a reduction in national insurance contributions because his party had run the economy in a “disciplined way”.
Hunt announced in November that the main rate of national insurance would be reduced from 12% to 10%, in a move the Treasury said represents “the largest ever cut to national insurance”.
The policy took effect from 6 January, meaning 27 million workers should soon see an uplift. While heralded as a win, personal income tax thresholds remaining frozen until 2028 leave lingering doubts as to how beneficial this policy will be.
Hunt has faced pressure to take action against this fiscal drag, but has so far declined to do so.
Darren Jones, the shadow chief secretary, said: “Jeremy Hunt’s words will read hollow to the millions of people who have been left worse off after 14 years of economic failure.
“Prices are still rising in the shops, monthly mortgage bills are soaring and the average family will be £1,200 worse off under the Tories’ tax plan.
“Britain needs change and a Labour government, not five more years of Conservative failure.”
