Inheritance tax and stamp duty might be cut within the Autumn Statement following positive projections concerning the state of public funds.
The cuts are being considered by Jeremy Hunt after he was told that he has more fiscal ‘headroom’ than expected.
Despite this, they might still find yourself being pushed back to the spring Budget in the event that they are deemed unaffordable.
Jeremy Hunt has been assessing his options for the November 22 statement
Mr Hunt has been assessing his options for the November 22 statement after the Treasury’s independent fiscal watchdog, the Office for Budget Responsibility (OBR), said his ‘headroom’ had grown to between £13 billion and £15 billion.
He had previously ruled out personal tax cuts over fears that they might undermine efforts to bring down inflation.
Nonetheless, Mr Hunt is under political pressure to provide the Tories a strategy to bridge the poll gap with Labour following a series of by-election defeats.
Lower-than-expected growth projections have convinced the Chancellor that he must take motion to stimulate the economy, the Sunday Times reported.
Cuts to inheritance tax and stamp duty are thought to be less inflationary because they don’t involve directly pumping money into the system.
Reforms to inheritance tax could include reducing the headline 40 per cent rate, or simplifying the system to permit families to pass on £1 million tax-free.
Changes to stamp duty could include a rebate for buyers who improve the energy efficiency of their latest home inside two years.