Around £15bn of scope could be used to halve inheritance tax to 20 per cent at the autumn return

Around £15bn of scope could be used to halve inheritance tax to 20 per cent in the autumn statement.

And stamp duty thresholds could be raised to boost the stagnant property market.

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But the chancellor is still resisting calls to cut personal taxes on November 22, fearing it could boost inflation.

The Office for Budget Responsibility has pointed out that billions of dollars in wiggle room could mean other taxes could be cut instead.

Ahead of his half-yearly budget update, Hunt said on Friday: “I can rule out any tax cut that will fuel inflation.”

Inheritance tax is currently 40 per cent for estates over £325,000, or over £1 million for couples leaving a family home.

Buyers pay 5 per cent stamp duty on properties over £250,000, 10 per cent on houses worth £925,000 and 12 per cent over £1.5 million.

It is expected that these thresholds will be increased.

Mr Hunt will also spend £10bn to extend tax relief for large companies using the “full expense” principle to offset their investments against corporation tax.

While expensive, it is a favorite policy of Prime Minister Rishi Sunak, saving companies 25p in tax on every pound invested.