Hunt faces a showdown with the Tories for downplaying the chances of big tax cuts

JEREMY Hunt faces a showdown with Tory MPs as he downplays the chances of big tax cuts at the Budget.

The Chancellor insists he wants to “reduce the tax burden”, but tempers expectations about the scale of aid to households.

Alarm bells have sounded among senior Tories after Hunt hinted he would likely have less room to maneuver next month than in the autumn statement.

He had said on January 20: “The plan is working. That's why we have to stick to it. It means lowering taxes, not raising them.”

But he told the BBC today: “It doesn't seem to me that we will have the same opportunities to cut taxes in the spring budget as we did in the autumn statement.

“And so I have to manage people's expectations about the magnitude of what I do, because people need to know that when a Conservative government cuts taxes, we will do it in a responsible and sensible way.”

He added: “But we also want to make it clear that the direction we want to take is to reduce the tax burden.”

The Treasury Department is still waiting for final forecasts from the Office of Budget Responsibility, which will allow it to decide where to spend the remaining money.

But ex-cabinet minister Jacob Rees-Mogg said this evening: “Targeted tax cuts would stimulate the economy and because the OBR is consistently too gloomy, the Chancellor should follow his Tory principles and cut taxes.”

Tory MP Jonathan Gullis backed plans for income tax cuts and fuel duty relief to ease the burden on families.

He said they are needed “for hardworking families and the many small family businesses that are the backbone of our economy.”

Mr Gullis said this would “unlock growth in our economy, create new jobs and therefore invest in our schools, NHS and armed forces”.

It comes after the financial watchdog likened last year's forecasts to a “work of fiction”.

Mr Hunt criticized the organisation's chairman, Richard Hughes.

He added: “These words are wrong and they should not have been said. The government decides on expenditure plans and expenditure reviews.

“The next spending review starts in April 2025 and of course we will not publish our spending plans until that spending review has been completed. No government has ever done that.”

Prime Minister Rishi Sunak had said there was “more to come” as he spoke about the new cuts to National Insurance.

The International Monetary Fund warned this week that the Chancellor should not press ahead with tax cuts but focus on public services.