Jeremy Hunt risks angering Conservative MPs by dampening hopes of big budget cuts on Wednesday

Chancellor Jeremy Hunt risked further angering Conservative MPs today as he again dampened hopes of major tax cuts in his budget on Wednesday.

Conservative MPs are pressing Hunt to reduce the tax burden on families and businesses, especially with the planned increase in corporate tax to 25 percent.

But while the chancellor insisted this morning that “a Conservative government will always cut taxes where it can”, he vowed to be “responsible” with Britain’s public finances.

Hunt has signaled that there will be new tax breaks for companies in his tax package on Wednesday, after outlining how steps could be taken to change the “effective rate” of corporate tax.

However, he showed little interest in reversing a planned increase in the general corporate tax rate from 19 percent to 25 percent next month.

Mr Hunt was challenged by his earlier call, when he ran briefly for the Tory leadership last summer, for corporation tax to be cut to 15 per cent.

In a Sky News interview this morning, the chancellor was challenged by his earlier call, when he ran briefly for the Tory leadership last summer, for corporation tax to be cut to 15 per cent.

“It’s the same Jeremy Hunt that’s with you now and I still want us to have the most competitive business taxes anywhere in the world,” he told the channel’s Sophy Ridge show on Sunday. ‘I am a conservative who believes in a low tax economy.’

But Hunt added that he also had to be “responsible with public finances.”

“We are not going to do what the last Labor government did and run out of money,” the chancellor said. “Businesses need the stability that comes from being responsible, so we’ll get there gradually, but we’ll get there.”

Told he was running the economy like he was ‘Jeremy from accounting’, Hunt replied: ‘I guess you have to wait and see what I say on Wednesday.

“But, you know, Jeremy the Chancellor will be responsible for public finances and I don’t apologize for that.”

Former chancellor Philip Hammond told the same show that raising corporate tax was “the right move for now” but cautioned that a 25 percent level should not become the “new normal.”

He also said he expected Mr Hunt to play around with tax exemptions and rebates to reduce the ‘effective’ rate for companies.

“What really matters to companies is the effective tax rate and I hope we’ll hear the Chancellor make some moves on allowances and relief so that for many companies, particularly those that are investing heavily, the effective corporate tax rate is reduced. a little,’ said Lord Hammond.

The issue of tax cuts has become a longstanding issue between the government and Conservative MPs, and the UK tax burden is on track to reach its highest level in 70 years.

Allies of former Prime Minister Liz Truss have formed the ‘Conservative Growth Group’ to pressure Hunt to cut taxes and pursue policies that will boost growth.

Just days before the budget, top Conservatives were also reported to have written to Hunt demanding that he withdraw from an international agreement that corporate tax must never be cut below 15 percent.

According to the Telegrapha group headed by Ms Truss and former Home Secretary Priti Patel called on the chancellor not to “rush to relinquish sovereign tax rights”.

“As the party chosen to ensure Britain ‘takes back control’ of the EU, it is remarkable that we are being asked to rush in and hand over sovereign tax rights under the OECD initiative, especially as so many questions about the move remain unresolved. “. they said.

“We are united in our belief that we risk damaging the UK’s economic competitiveness if we go ahead with the current implementation schedule.”