The Chancellor Jeremy Hunt has ruled out large tax cuts as this will “compromise” their efforts in the fight against inflation.
However, he did leave the door open for the possibility of making cuts next year which will pave the way for the Prime Minister to make pledges ahead of the general election.
Cabinet Minister Michael Gove has also called on the Chancellor and Rishi Sunak to make tax cuts for a pre-election giveaway.
Hunt, however, told GB News: “The way you win elections is by making promises people believe.
“We’re being honest with people, there is no short cut to tax cuts.
“If I gave a big tax cut this year, it would be inflationary, because we’d be putting money in people’s pockets, which would boost up demand, which would ultimately mean prices would go up as well. So this is not the right time.”
The Chancellor added, “I don’t think it’s going to be possible to do any big tax cuts, on the basis first of all of the public finances as we see them… but also it would compromise our battle against inflation.”