Chancellor Jeremy Hunt will unveil his latest budget on Wednesday, but what could it mean for us?

The Chancellor has said he hopes to use the Budget to “show a path” in the direction of tax cuts, but stressed any reductions in taxation would have to be “prudent”.

During interviews with broadcasters over the weekend, Jeremy Hunt said he wants Britain to “move towards a lower tax economy” and that he feels a “moral duty to leave as much money in people’s pockets as possible”.

But he said any tax cuts will have to be “sustainable” and “affordable”. 

He told Sky News the 2p cut to national insurance in the autumn statement in November was a “turning point” and he hopes to “make some progress on that journey” on Wednesday.

Mr Hunt’s tone over recent months appears to have become more cautious on the prospect of delivering the tax cuts many Conservative MPs have been hankering for in the Budget.

In January, Mr Hunt compared himself with Nigel Lawson, Margaret Thatcher’s tax-cutting former chancellor, as he argued the Government’s economic plan was working and that meant “cutting taxes”.

But only weeks later in February, he was warning the Cabinet that the prospect for tax reductions in March looked more narrow than it did at the autumn statement.

 Since those comments, data from the Office for National Statistics has confirmed the British economy slipped into recession at the end of 2023.

Mr Hunt — who said he still believes he will be Chancellor both before and after the next election, despite heavily trailing Labour in opinion polls — set out plans to establish a “contrast” between the vision of Mr Sunak and Sir Keir Starmer in the Budget.

The pledge to draw a line between the governing and Opposition party is despite reports swirling that he is preparing to use one of Labour’s key fiscal policies to help balance the Budget.

He is thought to be considering abolishing the non-dom status as a potential way of raising revenue, despite resisting the idea in the past.

Non-domiciled status allows foreign nationals who live in the UK, but are officially domiciled overseas, to avoid paying UK tax on their overseas income or capital gains.

The Prime Minister’s wife Akshata Murty has previously enjoyed non-dom status.

Labour’s shadow education secretary Bridget Phillipson said it would be an “abject humiliation” for the Tories if they implemented Labour’s nom-dom policy given Cabinet ministers had “spent years rubbishing this idea”.

“If they were to do it it would just demonstrate that it is Labour who are leading the charge when it comes to the battle of ideas in this country,” she told Sky News’ Sunday Morning With Trevor Phillips.