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Chancellor Jeremy Hunt at Davos

By Vishala Sri-Pathma

Business reporter

The chancellor, Jeremy Hunt has given strong hints that he wants to cut taxes in the spring budget.

Mr Hunt told the BBC that countries with lower taxes have more "dynamic, faster growing economies".

In the autumn statement, the chancellor cut national insurance for workers by 2% and announced tax relief for businesses.

If inflation falls this year, followed by lower interest rates, Mr Hunt may have headroom for further tax cuts.

Mr Hunt was speaking during his visit to the World Economic Forum, in Davos, Switzerland, where he is hoping to lure in more investment to Britain.

He said the "direction of travel" indicates that economies growing faster than the UK, in North America and Asia tend to have lower taxes.

He added: "I believe fundamentally that low-tax economies are more dynamic, more competitive and generate more money for public services like the NHS."