George Osborne has been urged by former defence secretary Liam Fox, Tory backbenchers and the PwC accountancy firm to unveil tax cuts in his Autumn Statement this Thursday in order to help families with the cost of living.
In his latest tax cut demand, Fox wrote in the Times that the Chancellor should "take less out of people's pockets" in order to help the economic recovery.
He wrote: “A low-tax economy will not only help us to compete globally, it will help household budgets when the cost of borrowing inevitably rises towards historical norms."
Fox's call to cut taxes came as Tory MP Dominic Raab called on the Tories to "stop suffocating business and give hard-pressed families more of their money back".
TOP STORIES OF THE DAY
Tory MPs have been piling the pressure on the Chancellor to cut taxes, after members of the Free Enterprise Group urged Osborne to "be brave, be bold" in his Autumn Statement
The PwC audit firm released research suggesting that the Chancellor could help thousands of first time home buyers by cutting stamp duty from 3 to 2% on homes worth between £250,000 and £300,000, in a move which would only cost £150,000 million.
PwC tax director Paul Emery said: “More first time buyers are being dragged into paying 3pc stamp duty, particularly those in and around London."
“Reducing the rate by 1pc would cost a relatively small amount to the Treasury but would make a huge difference to those struggling to save for a deposit.”
“It [a reduction in stamp duty] would be a very welcome respite for many and might help alleviate some of the distortion to the market caused by taxation."