Tax Cut Plea As UK Economy 'On Track'

TORIES urged Chancellor Jeremy Hunt to cut taxes as soon as possible after world experts declared Britain was on the "right track" for economic growth.

- Sam Lister

The International Monetary Fund yesterday previously overturned gloomy forecasts by giving the UK the biggest upgrade of any leading nation.

It now expects the economy to shrink by 0.3 per cent this year - half of the fall previously expected before growing by one per cent in 2024.

The prediction fuelled a tax-cut clamour among Conservatives in the face of speculation Mr Hunt is planning an autumn blitz to put more money in people's pockets.

MP Sir John Redwood said: "We need tax cuts now, the sooner the better. There is a big real income squeeze under way.

"We also need tax cuts on business investment because the much higher corporation tax rate is doing great damage to future investment plans and hitting new jobs.

Agenda

"I've always thought the Government should take VAT off domestic fuel and I'm against general tax subsidy money-go-round in the energy sector where they offer subsidies and impose extra taxes." Senior Tory David Jones said: