UK Chancellor Hunt Poised for £10bn Tax Cuts Amid Slowing Inflation

Potential tax reductions equivalent to 1p off income tax rates, as government meets pledge to halve pace of price rises.

UK Chancellor Jeremy Hunt has the potential to cut taxes by as much as £10bn in the upcoming Autumn Statement, according to JP Morgan, due to an improved economic outlook and slowing inflation.
Hunt's potential tax cuts could be equivalent to taking 1p off the basic and higher rate of income tax, aiming to regain political momentum ahead of a likely election next year.
The Government has met its pledge to cut the pace of price rises in half this year, with inflation in October falling to 4.6%, down from 10.5% at the end of 2022.
The Chancellor has ruled out any personal tax breaks that fuel inflation, but is likely to extend the policy of full expensing for businesses, allowing them to write-off the cost of investment against their tax bill.
Hunt may also consider raising the threshold at which individuals pay inheritance tax, a potentially popular move for Conservative voters.