Hunt attempts to calm Tory rebels by promising to end 'vicious cycle' of tax hikes

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Chancellor Jeremy Hunt has claimed that welfare reforms and increased use of AI in the public sector could be the way to end the “vicious cycle of the constant increase in taxes."

Mr. Hunt is trying to quell a growing Tory rebellion - as Liz Truss joined dozens of backbenchers who vowed not to vote for his autumn statement if it contained tax rises.

Some 33 Conservative MPs – including Jacob Rees-Mogg and Priti Patel – who are desperate for tax cuts – have signed a pledge not to “vote for or support new taxes which increase the overall tax burden”.

It's coming as top economists say The Institute for Fiscal Studies (IFS) think tank has said the Tories will have presided over the biggest round of tax rises since at least the Second World War.

Ahead of a major row at the Tory conference, Mr Hunt again indicated he would not propose tax cuts in November - but insisted on fact that he wanted to work on how to reduce the tax burden in a “credible” way in the future.

“We are not in a position to discuss tax cuts at all,” he toldthe Times. “The question we need to answer for the British people is: what are you doing to put yourself in a position where you can credibly cut taxes?”

He explained the way to follow to cut taxes, which some economists and conservatives say contribute to economic growth would depend on creating a “more productive state, not a bigger state.”

“ We need a state that doesn't just provide the services it currently provides, but actually improves the services it provides and recognizes that there will be more calls for those services with an aging population," he said.

Jeremy Hunt tries to find "margin" for the declaration of November autumn

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Mr. Hunt added: “But we need to find a formula that doesn't mean we're on a vicious cycle of ever-increasing taxes.”

He said AI could “transform” the sector public, helping teachers correct homework, helping police identify crime hot spots, and providing doctors and nurses with “more accurate diagnoses.”