Jeremy Hunt faces down Tory tax cut rebels with vow to reduce inflation first trends now

Jeremy Hunt faced down Tory backbenchers demanding radical tax reductions today as he pledged to transform 'British genius and hard work' into long-term prosperity.

The Chancellor signalled his determination to bring down sky-high inflation despite clamour for rate cuts to boost growth.

Setting out a plan for growth, the Chancellor hit out at the 'declinism' peddled by Labour and say this country is well placed to exploit 'the growth sectors which will define this century'.

He will insisted that downbeat projections from gloomy forecasters 'do not reflect the whole picture' and argue that the economy is standing up well against global rivals.

But after an introduction written for him by AI software, he took aim at his Tory critics.

In a speech at Bloomberg's London HQ, Mr Hunt said: 'My party understands better than others the importance of low taxes in creating incentives and fostering the animal spirits that spur economic growth.

'Another Conservative insight is that risk-taking by individuals and businesses can only happen when governments provide economic and financial stability.

'So the best tax cut right now is a cut in inflation.

'And the plan I set out in the autumn statement tackles that root cause of instability in the British economy.

'The Prime Minister talked about halving inflation as one of his five key priorities and doing so is the only sustainable way to restore industrial harmony.'

But he went on to admit taxes must be lowered to attract investment and pledged to put 'restraint on spending'.

'High taxes directly affect the incentives which determine decisions by entrepreneurs, investors or larger companies, about whether to pursue their ambitions in Britain.'

He added: 'Our ambition should be to have nothing less than the most competitive tax regime of any major country. That means restraint on spending'

'In case anyone is in any doubt about who will actually deliver that restraint to make a low tax economy possible, I gently point out that in the three weeks since Labour promised no big Government chequebook they've made £45 billion of unfunded spending commitments.'

Making 'the case for optimism', he claimed EU red tape has held back investment and productivity but future growth can be 'built on the freedoms which Brexit provides'.

Mr Hunt told a Cabinet 'awayday' at Chequers yesterday that the Government could meet Rishi Sunak's pledges to halve inflation, kick start growth and rein in debt.

But he warned it would require tight control over spending, including resisting union calls for pay rises that could fuel price rises.

Mr Hunt pledged a relentless focus on key industries of the future in which the UK has a 'competitive advantage', such as digital technology, green industries, the life sciences, advanced manufacturing and the creative sector.

'Our plan for the years that follow is long-term prosperity based on British genius and British hard work ... and world-beating enterprises to make Britain the world's next Silicon Valley,' he said.

Mr Hunt told

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