Jeremy Hunt has resisted calls from ‘depressed’ Conservative MPs to commit to cutting taxes amid warnings that the UK economy will be the worst-performing of all the advanced G7 countries
The International Monetary Fund’s latest forecast puts the UK languishing behind the US, Germany and even Russia, which has been hit with sanctions and is spending billions of pounds on its illegal war in Ukraine.
Inflation, fuelled in part by sky-high energy bills during the war, is having a major impact on economies across the world and higher prices mean people have less money to spend, which dampens demand in the economy and stifles growth.
But the chancellor has repeatedly warned his first priority is to get sky-high inflation under control ahead of any tax cuts.
And he joked that he was “quaking” as he arrived for a grilling by backbench MPs of the 1922 Committee in his own party after desperate economic forecasts led to renewed calls for cuts to stimulate growth.
The IMF’s warning that Britain will be the only major economy to plunge into recession this year sent shockwaves among some Conservative MPs on Tuesday.
But Mr Hunt said “nothing” when confronted with calls for tax cuts during the meeting, one of those present said.
Edward Leigh told reporters after the gathering: “My view is you can’t wait until the general election.
“(Tory MPs) are depressed. You’ve got to give them hope. You’ve got to say: ‘We made the right decisions in September, therefore that’s given me room in this budget to cut taxes, whether it’s corporation, personal or fuel’.
“That was my point anyway. But, obviously, he is not going to comment now… but he got the message.”
Another MP, David Simmonds, said Mr Hunt had spoken about the planned reduction in business rates due in April and described the meeting as “very positive, actually”.
During the session, the chancellor also told MPs he did not yet know whether he would hike fuel duty in next month’s Budget, saying he would have to wait and “see what the finances are at the time”, according to another Conservative MP, former minister Jonathan Gullis.
