The Government on Friday denied it favours tax cuts for the rich on the back of benefit cuts for the poor as speculation grew of possible budget giveaways in next week’s Autumn Statement.
With the Conservatives languishing in the polls, Chancellor Jeremy Hunt announced new benefit restrictions as part of a £2.5 billion “back to work” plan targeting the long-term sick and unemployed.
Mr Hunt said the measures were necessary to prevent “anyone choosing to coast on the hard work of taxpayers”, while at the same time he is reportedly eyeing cuts to inheritance tax for the better off in the buildup to an election next year.
Separate tax breaks for business could be made permanent, the Financial Times said, with the Office for Budget Responsibility expected to confirm that the Treasury has billions more in tax revenue than previously forecast.
Transport Secretary Mark Harper, while refusing to speculate on what might be included in the Autumn Statement on Wednesday, denied the Government was intent on helping the rich by cracking down on the poor.
“Well no … I think it’s reasonable that if you provide that help and support and someone gets a job offer - they’re going to be better off in work than not working under our benefit system - I think it’s reasonable to expect them to take that job offer,” he told Sky News.
“That’s what people who work for a living and pay taxes, work really hard, that’s what they would expect people to be asked to do.”
The benefit restrictions will see free prescriptions and legal aid being cut off for benefit claimants who are deemed fit to work and do not seek employment.
The Treasury said digital tools will also be used to “track” attendance at job fairs and interviews under the toughened sanctions regime.
Rishi Sunak also refused to shed any light on what he and the Chancellor are planning for next week. But he noted this week's news from the Office for National Statistics that they had met their target of halving inflation this year.
"Now of course I know people are still suffering, they have been, so there’s work to do but that’s an important milestone because inflation is like a tax: it makes everyone feel poorer," the Prime Minister told broadcasters.
“But look, this Conservative Government has delivered, we are starting to ease the burden on the cost of living," he added.
“There’s work to do and you’ll hear more about that next week in the Autumn Statement.”
