Labour and Tories clash on economy as both hint at tax cuts

The Tories and Labour clashed over the economy as the Chancellor hinted at tax breaks for high earners while his opposite number insisted she had “no plans” to raise the burden on working people.

Jeremy Hunt signalled the Conservatives would seek to end the impact of tapering of personal allowances on larger incomes while Rachel Reeves vowed to deliver financial stability with a Thatcher-style commitment to “sound money”.

Workers lose £1 of their tax-free personal allowance for every £2 that their earnings go above £100,000, and anyone on more than £125,140 gets no allowance.

In an apparent bid to draw dividing lines with Labour, Mr Hunt used an interview with the Telegraph newspaper to dangle the prospect of a change to