Jeremy Hunt has suggested on Sunday that he could well announce tax cuts on Wednesday in his autumn statement.
The Chancellor is also considering inheritance and business tax cuts and he will also squeeze benefits by billions.
The Chancellor has said that this is now the moment for growth as there has been a “turning point for the economy.”
Hunt will also reform the “welfare system” and the government’s main “priority” is to help companies as he prepares to deliver the autumn statement.
Conservative former chancellor Lord Clarke said that Hunt’s move will please the Tory right as Labour are ahead in the polls.
Speaking to the Telegraph the Chancellor said, “Without pre-empting the decisions that the Prime Minister and I make, this is an autumn statement for growth. It’s a turning point for the economy.”
Hunt said that the UK has “turned the corner” in a massive way as the Prime Minister pledged earlier this year to bring inflation down.
He was asked if now is the time for economic growth, the Chancellor responded, “Yes, absolutely. This is the moment. We’ve got to go for it as a country and I think we’ve got a big, big opportunity.”
He added: “The big message on tax cuts is there is a path to reducing the tax burden and a Conservative government will take that path.”
Lord Clarke told Times Radio, “Well, it’s not the tax cut I would choose. Indeed, I’m not sure he’s got any room for tax cuts.
“And choosing inheritance tax at the present time might appeal to the Conservative right, but it leaves them open to the most appalling criticisms when inflation and the state of affairs is making poorer people in this country very vulnerable indeed, giving tax relief to those families that are lucky enough to have members of it with capital above the limit through inheritance tax and pay any significant amount of tax on the inheritance.
“And I’m not sure that the economic and financial state of the country justifies it.”