The package, which will be delivered to the House of Commons at about 12.45pm, could be the second-last set of tax and spending announcements before the general election, which is expected next autumn.
A welfare shake-up that makes it harder to claim sickness benefits while not looking for work, public spending restraint and pensions reforms will all feature. The National Living Wage is to increase by more than a pound to £11.44 per hour from next April under Mr Hunt’s plans, giving a boost to almost three million of the poorest workers.
But many voters and Tory MPs are expected to be watching which taxes Mr Hunt and Mr Sunak choose to cut after both men vowed to do so in recent days.
Move will cost £10bn a year
Full expensing, a scheme that allows companies to claim back money invested in the UK, such as in factories or equipment, was unveiled in the spring and was due to end March 2026.
The Telegraph reported this month that Mr Hunt was determined to expand the scheme and now understands it will be made permanent on Wednesday. It will cost about £10 billion a year.
Mr Hunt will celebrate the move as the biggest business tax cut in modern history, a claim based on analysis of a Treasury database dating back to 1970.
Think-tank experts have previously questioned whether the move would end up costing less if the boost to growth was factored in – a debate likely to play out in the coming days.
Companies have also been pushing for an expansion of a business rates cut that ends next spring, with the Government’s talk of tax cuts in recent days raising hopes.
Mr Hunt will say: “After a global pandemic and energy crisis, we have taken difficult decisions to put our economy back on track. We have supported families with rising bills, cut borrowing and halved inflation.
“The economy has grown. Real incomes have risen. Our plan for the British economy is working. But the work is not done. Conservatives know that a dynamic economy depends less on the decisions and diktats of ministers than on the energy and enterprise of the British people.”
William Turner is a seasoned U.K. correspondent with a deep understanding of domestic affairs. With a passion for British politics and culture, he provides insightful analysis and comprehensive coverage of events within the United Kingdom.
