CHANCELLOR Jeremy Hunt is eyeing up “priority” tax cuts for business in a bid to boost the economy.
He is planning to offer a lifeline to companies after improved public finances gave him around £20billion to play with.
He said: “I think the priority should always be business tax cuts. What we need to do is to improve the long term capacity of the British economy to generate the wealth we need to pay for the NHS. So that will always be the priority.”
No 10 has been buoyed by the good news that inflation has fallen to 4.6 per cent — hitting the PM’s target to halve the rate by the year’s end.
But the Chancellor vowed not to be irresponsible and risk it rising again — making income tax cuts less likely.
He said: “We want to bring taxes down. There are no short-cuts to that. The one thing we won’t do is bring taxes down in a way that fuels inflation.”
The Chancellor could use next Wednesday’s mini-Budget to extend a scheme which lets firms write-off investments such as IT against tax.
It is also thought inheritance tax may be cut.
The hospitality industry could also be in line for an extension to business rates relief.