Chancellor Jeremy Hunt has vowed to emulate Nigel Lawson, the tax-cutting Chancellor whose radical economic policies led to the Big Bang in financial markets and helped Margaret Thatcher win a third term in 1987.

Writing in the Mail on Sunday, Mr Hunt says that he will use his Budget on March 6 to start cutting taxes in a way which was ‘both affordable and boosts our growth'.

He says: ‘The most dynamic economies tend to be places with lower taxes. The lesson is clear: supporting businesses with competitive taxes - not more government spending - is the way to growth. 

'We Conservatives have always known that, of course - but it is worth remembering. The plan is working. That's why we need to stick to it. It means cutting taxes, not raising them.'

His words come after the Financial Times reported that Mr Hunt could be handed an extra £10bn of ‘headroom' for deeper tax cuts than expected as a result of lower Government borrowing costs.




Chancellor Jeremy Hunt says that he will use his Budget on March 6 to start cutting taxes in a way which was ‘both affordable and boosts our growth'





Hunt has vowed to emulate Nigel Lawson (pictured right), the tax-cutting Chancellor whose radical economic policies led to the Big Bang in financial markets and helped Margaret Thatcher (left) win a third term in 1987

Citing Lord Lawson, who died last year aged 91, Mr Hunt writes: v=onepage&q=red%20boost&f=false ‘Just as Nigel Lawson positioned the City of London for the finance boom in the 1980s, this period of Conservative Government has seen the UK positioned for the massive technological boom we're set to see in the coming years.'