Hunt warns against fuelling inflation - but hints at tax cuts

JEREMY Hunt has heightened expectations that he will cut taxes on businesses in a bid to boost growth with his autumn statement but downplayed chances of reducing income tax.

The Chancellor persistently warned against changes that could fuel inflation, dampening speculation that income tax or national insurance could be reduced.

He suggested during a round of broadcast interviews ahead of Wednesday's financial package that the personal tax burden will not come down "overnight" as he seeks to avoid prices spiralling again.

Mr Hunt made clear that his "priority is backing British business" after promising an "autumn statement for growth".

Rachel Reeves, his Labour shadow, warned cutting inheritance tax during a cost-of-living crisis would be wrong amid some Tory unease over the possible move.

She also warned against the "gradual erosion of people's incomes" if Mr Hunt goes ahead and squeezes billions from benefits payments, as has been under consideration.

Mr Hunt declared he wants to "bring down our tax burden" as he presented a positive tone after a year of urging restraint while battling to halve the rate of inflation.