Jeremy Hunt, along with Rishi Sunak, hinted at the possibility of further cuts in the spring budget, comparing himself to former chancellor Nigel Lawson, who pushed for tax cuts.
Writing in the Mail on Sunday, the Prime Minister drew comparisons to the late Ms Lawson, who was known for slashing personal tax during the Thatcher government.
Mr Hunt said: “Just as Nigel Lawson positioned the City of London for a financial boom in the 1980s, this period of Conservative government has seen the UK prepare for the huge financial boom that will be seen in the coming years. “It's positioned for a massive technology boom.”
Lawson was appointed Chancellor of the Exchequer in 1983 and delivered six budgets before resigning in 1989. He initiated the tax reduction process in 1986, aiming to reduce the basic rate of income tax from an initial 30% to 29%. Two years later, the interest rate was lowered to 25%.
Mr Hunt's commitment to tax cuts was echoed by the Prime Minister, who promised to “always prioritize tax cuts to put more people's money back into our own pockets”.
Writing in The Sun newspaper on Sunday, Mr Sunak said the government was able to introduce the National Insurance contribution cuts because his party had managed the economy in a “disciplined manner”.
Prime Minister Hunt announced in November that the National Insurance core tax rate would be reduced from 12% to 10%, which the Treasury said was a “national insurance core rate reduction”.
The policy took effect from January 6, meaning 27 million workers will soon experience job gains. While reported as a victory, the personal income tax threshold remains frozen until 2028, and questions remain about how beneficial the policy will be.
Premier Hunt has been under pressure to do something about this fiscal drag, but he has so far refused.
Shadow chief secretary Darren Jones said: 'Jeremy Hunt's words will ring hollow for millions of people who find themselves in an even worse situation after 14 years of economic failure.
“Shop prices are still rising, monthly mortgage bills are rising and the average household will be £1,200 worse off under the Conservative tax plan.
“Britain needs change and a Labor government, not another five years of Tory failures.”
