The package, which will be delivered to the House of Commons at around 12.45pm, could be the second-last set of tax and spending announcements before the general election, expected next autumn.
Changes to the social care system will include making it harder to claim sickness benefits while not looking for work, restricting public spending, and pension reforms. The National Living Wage is set to rise by more than a pound to £11.44 an hour from next April under Hunt’s plans, giving a boost to nearly three million of the poorest workers.
But many Tory voters and MPs are expected to be watching which taxes Hunt and Sunak choose to cut after both men pledged to do so in recent days.
This move will cost 10 billion pounds annually
Full Expense, a scheme that allows businesses to claim back money invested in the UK, such as plant or equipment, was unveiled in the spring and was due to end in March 2026.
The Telegraph reported this month that Hunt is determined to expand the scheme and now realizes it will become permanent on Wednesday. It will cost about £10 billion a year.
Hunt will celebrate the move as the biggest corporate tax cut in modern history, a claim based on analysis of a Treasury database dating back to 1970.
Think tank experts have previously questioned whether the move would end up costing less if the growth boost was taken into account – a debate that is likely to play out in the coming days.
Businesses are also pushing for an extension to business rates cuts that expire next spring, with government talk of tax cuts in recent days raising hopes.
Hunt will say: “After the global pandemic and energy crisis, we made difficult decisions to get our economy back on track. We have supported families by raising their bills, cutting borrowing and halving inflation.
“The economy has grown. Real incomes have risen. Our plan for the British economy is working. But the work is not done. The Conservatives recognize that a dynamic economy depends less on the decisions and dictates of ministers than on the energy and enterprise of the British people.