Conservatives to Slash Taxes in Budget, Chancellor Suggests

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Conservatives to Slash Taxes in Budget, Chancellor Suggests
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Chancellor Jeremy Hunt suggests that the Conservatives will slash taxes at the March 6 budget in an effort to avoid a general election obliteration. He compares his plan to that of Lord Lawson, who cut personal taxation in the Thatcher government.

The Conservatives will slash taxes at the March 6 budget, Chancellor Jeremy Hunt has suggested, as the party makes a last-ditch effort to stave off a general election obliteration when voters head to the polls later this year. Mr Hunt said today the Government's "plan is working" and "we need to stick to it". He said this would mean "cutting taxes", as he hinted at the contents of his set-piece fiscal event in the coming weeks.

Writing in the Mail On Sunday, the Chancellor likened his record to that of Conservative Party grandee Lord Lawson, who slashed personal taxation while serving in the Thatcher government.In his two budgets prior to the 1987 election, Lord Lawson famously cut both the standard and top rate of income tax to reignite what was believed to be a slowing economy.However, critics of Lawson's policy argue his economic mechanisms saw inflation quickly spin out of control, leading to a 20 per cent increase in house prices. Lord Lawson was later forced to double interest rates as inflation spiraled u

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