Jeremy Hunt has confirmed five major tax cuts will be included in a Conservative post-election budget, and has challenged his Labour counterpart to rule out any rises in her first budget.
The Chancellor said National Insurance would be slashed for the employed and the self-employed, income tax would be cut for pensioners and the increased stamp duty threshold would be extended.
Landlords who sell their properties to existing tenants will also get a two-year capital gains tax relief. All the tax cuts would take effect from next April.
Cutting employee National Insurance to seven per cent would save the average worker £225 a year, the Conservative Party has said, while the self-employed would benefit by £155 annually.
Mr Hunt challenged Shadow Chancellor Rachel Reeves who, along with other senior Labour figures, has failed to rule out increases in areas such as council tax and inheritance tax.
Ms Reeves has said there will be no budget until September if Labour wins the election so they can receive forecasts from the Office for Budget Responsibility beforehand.
Last night shadow minister Nick Thomas-Symonds hinted at tax hikes if the financial situation is ‘worse than thought’ if they enter government.