Chancellor Jeremy Hunt has hinted that he will introduce tax cuts in the budget, set to be delivered tomorrow.
This comes as growing pressure has been placed on the Chancellor to cut taxes with them being at a current historic high but would only complete this in a “Responsible” way.
Mark Farrell, 21, said: “I think if taxes were cut, even slightly, it would benefit the younger generation in this city as with the growing pressures, it will allow them a bit more money for the future for things like a mortgage or learning to drive.”
Desmond Burgess, 45, believes these cuts could benefit the local economy: “The theory is if you pay less then you put more back into the economy because you have more in your pocket. I guess it’s up to the individual as some might prefer to save more of their money.”
As a part of the Budget Cuts, Mr Hunt is considering a further cut to National Insurance which was already reduced in Autumn’s statement from 12% to 10%.
He said: “The most unconservative thing I could do would be to cut taxes by increasing borrowing.
“But I do want, where it’s possible to do so responsibly, to move towards a lower-tax economy, and I hope to show a path in that direction.”
Despite the recent National Insurance Cuts as well as an upcoming General Election due by the end of January, the amount of tax being payed is tracking to reach record-breaking levels.
Labour believes no matter what cuts are in place, people will still be in a struggling position due to the way the Tory Party has led the country.
Labour’s shadow chief secretary to the Treasury Darren Jones said: “The chancellor says he wants to cut taxes, but it is the Tories who have raised taxes to their highest level in 70 years.
“No matter what the chancellor does in the Budget this week, working people will be worse off thanks to 14 years of Tory failure.”
The government has already announced £800m being put towards freeing up NHS and police waiting times through the uses of Artificial Intelligence and drones looking at factors such as road traffic.
The Chancellor is also considering raising revenue by adding a new tax on vapes as well as scrapping non-domiciled tax status. This is for UK residents who for tax purposes, have their home abroad. Under the current law, they do not have to pay UK tax on any money they make overseas.
Mr Hunt refused to comment on any potential changes to specific taxes.
He said: “The country sees through gimmicks and we are not going to do gimmicks on Wednesday.”
Featured image: Jeremy Hunt, Chancellor of the Exchequer (C) Simon Walker
