On Wednesday, he will tell MPs: “In the autumn we took difficult decisions to deliver stability and sound money. Today, we deliver the next part of our plan, a budget for growth.”
One Tory official said Mr Hunt’s statement would be deliberately cautious and regarded as “a budget for wonks”, adding: “We’re not out of the woods yet.” Rightwing Tory MPs have been told not to expect big tax cuts. Mr Hunt will claim that he can deliver growth by “removing the obstacles that stop businesses investing, tackling the labour shortages that stop them recruiting, breaking down the barriers that stop people working and harnessing British ingenuity to make us a science and tech superpower”.
Government officials say Mr Hunt will announce a new multibillion-pound regime of capital allowances and other reforms intended to boost investment – and to offset other tax changes taking effect in April that will hit business. The chancellor has said he will stick to plans to increase corporation tax from 19 per cent to 25 per cent and to end a “super-deduction” – a two-year measure offering 130 per cent tax relief on companies’ purchases of equipment. – Copyright The Financial Times Limited 2023