Tax rises ‘could choke growth’

MASSIVE tax rises planned by Chancellor Jeremy Hunt could ‘choke off growth’ and trigger a deeper recession, a former Cabinet minister warned yesterday.

Simon Clarke, who was Levelling Up Secretary in Liz Truss’s government, urged ministers to focus on spending cuts rather than tax rises as they scramble to balance the books ahead of Thursday’s Budget.

Mr Clarke, who also served as Rishi Sunak’s deputy during his time at the Treasury, told Sky News: ‘I believe very strongly that with the tax burden at a 70-year high, we need to be extremely careful about further increasing the challenges facing businesses and households.’

Sources said the Budget was likely to comprise around £33billion in spending cuts and £21billion in tax rises, on top of the £ 32billion in tax increases announced by Mr Hunt last month.