As Jeremy Hunt prepares for today’s crucial budget, Brexiteer Ben Habib has highlighted what he claims are three crucial problems with the Chancellor’s pledge to cut takes responsibly.
Mr Hunt will deliver his crucial financial statement in the House of Commons, with cuts to national insurance for 28 million people reportedly be at its heart.
There are also rumours that he will scrap inheritance tax, while he has not ruled out the possibility of tax cuts either.
However, speaking on Monday, Mr Habib, founder and CEO of commercial property fund manager First Property Group plc, was not optimistic.
He told Express.co.uk: "Hunt says he will act responsibly in cutting taxes so as not to stoke inflation.
“There are at least three implicit problems in his statement.”
He explained: “The first is that government spending is less inflationary than if we ourselves spend that which is rightfully ours.
“The second is that we are profligate, the government is not. There is scant evidence for this. Indeed, all the evidence points to government wastefulness, fraud and ineptitude when it comes to disbursing our cash.
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“The third is that government is responsible for managing inflation. It is not. That is the job of the Bank of England.”
Mr Hunt had declared that with tax cuts, his would be a budget for growth, Mr Habib pointed out.
He continued: “The implication here being that previous budgets had not been designed to grow the economy.
“In short, he was admitting gross mismanagement of the economy. With that I agree.
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“The truth is successive Tory governments have practiced the socialist economic model of wealth redistribution – not wealth creation. It is only the latter that can yield a better life for us all.
“Taxes should have been cut years ago.”
With the Bank of England forecasting a stagnant economy in 2024, the Chancellor's Commons statement on Wednesday is expected to focus on backing businesses.
The Government has also announced an increase in the national living wage, up from £10.42 to £11.44 from April, with the policy also extended to cover workers aged 21 and over, rather than 23 and over.
It will mean a £1,800 annual pay rise next year for a full-time worker on the living wage, while 18 to 20-year-olds will receive a £1.11 hourly rise to £8.60.
Treasury Chief Secretary Laura Trott has indicated that workers could be in line for a tax cut.
She today told the BBC's Today programme the Government would focus on "cutting taxes for individuals".
A tighter approach to welfare is also expected with plans to get people off benefits and into jobs.
Controversially, those with mental health or mobility problems could be told to search for jobs that are possible to do from home.
Free prescriptions and legal aid will be cut off for benefits claimants deemed fit to work who do not look for employment, the Government announced last week.