Jeremy Hunt has said that the UK needs to break the 'vicious circle' of constantly rising taxes, as he called for a 'carrot and stick' approach to get people back into work.
Jeremy Hunt has written off tax breaks for now - but PM will want to find a way to cut burden, writes Natasha Clark
The Chancellor said the UK needed a "more productive state, not a bigger state" in order to lower taxes. The Chancellor said some 100,000 people per year were "moving off work into benefits without any obligation to look for work". He said that was a sign that the system was not working. "It is likely that this Parliament will mark a decisive and permanent shift to a higher-tax economy."
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