Income tax: Jeremy Hunt discusses Autumn Statement prospects

It had been reported that he was considering reducing taxes on income, inheritance and businesses.

Mr Hunt has said he wants to set out a “path” to reducing overall taxation but would “only do so in a responsible way” that did not “sacrifice the progress on inflation”.

When asked if he would cut income tax, he said he would not comment on a decision ahead of the statement, adding: “Our priority is growth.”

Jeremy Hunt has said he will reduce taxation in a responsible way (Image: James Manning/PA Wire)

He had previously said tax cuts are “virtually impossible” given the state of the economy and stressed bringing down living costs was his priority, BBC News reports.

Despite this, The Times reports that Mr Hunt and Prime Minister Rishi Sunak are weighing up tax cuts for “low and middle earners”.

They added: “The chancellor had been expected to wait until spring to introduce income tax cuts, but improved public finances and worse-than-expected growth forecasts have encouraged him to reconsider amid fears it might not be possible if he waits until next year.”

What is income tax?

Income tax is simply a tax that you pay on your earnings, and the more people earn the more tax they pay.

Scotland set their own bands and rates but in England, Wales and Northern Ireland it is the same.

For most families in the UK, income tax is the single biggest tax they pay (Image: PA)

Earnings of up to £12,570 in a year are not taxed but if you earn anything between £12,571 and £50,270 you are taxed at a rate of 20%.

Meanwhile, this increases to 40% for salaries between £50,271 and £125,140 and goes up to 45% for anything over £125,140.

For most families in the UK, income tax is the single biggest tax they pay.

Tax levels in the UK are at their highest since records began 70 years ago and are unlikely to come down soon, according to a leading think tank, the Institute for Fiscal Studies.