Six times chancellors cut taxes before an election - and what happened next

With the Conservatives facing an uphill battle in the next general election, all eyes will be on Jeremy Hunt as he delivers his Autumn Statement tomorrow.

The Chancellor will be under pressure to show he can deliver anticipated tax cuts as well as a compelling reason for voters to back the Tories against a resurgent Labour Party.

Not all pre-election giveaways have seen the governing party returned to power: think back to the 1996 budget, which failed to stem an exodus of voters to Labour. However, public-pleasing giveaways have helped to rejuvenate a party worn out by multiple terms in office and, in some cases, delivered an unexpected victory. Rishi Sunak will need both.

In the coalition government’s final budget, George Osborne announced that the personal allowance would increase to exempt poorer households from income tax.

Under the then-chancellor’s plans, it rose to £10,800 in 2016 and £11,000 the following year, up from £6,500 when the Conservatives entered office.

In a giveaway at the other end of the scale, he revealed an above-inflation increase in the higher rate threshold to £43,300.

Beer duty was cut for the third year in a row, taking a penny off a pint.

In the election two months later, the Conservatives won a surprise majority of 12 seats – their first since 1992.

A couple of months before the general election, Gordon Brown announced the stamp duty threshold would be doubled from £60,000 to £120,000.

“With both our economy and public finances strong, I can afford tax cuts for hard-working families,” he declared.

The starting point for inheritance tax was raised from just over £260,00 to £275,000, rising to £285,000 and then £300,000 over the following years.

Mr Brown said it would mean 94 per cent of estates would not pay inheritance tax, although critics noted the increases had been outstripped by house price inflation.

Labour won its third consecutive election victory with a majority of 66 seats in May.

Labour’s “Iron Chancellor” announced a fall in the basic rate of tax from 23p in the pound to 22p in his 2001 pre-election giveaway.

There was also the introduction of a new 10 per cent starting rate for those on low incomes, although some pointed out that this was undercut by the taxable income threshold being lowered.

Mr Brown scrapped the betting duty – which hit punters with a 9 per cent tax – by taxing bookmakers 15 per cent on their gross profits.

Labour was re-elected to serve a second term in government with another landslide victory and majority of 167 seats.

Ken Clarke may have alarmed some Tory MPs when he began his last pre-election budget by warning he was “not going to play Santa Claus”.

However, he said he “did not have to play Scrooge” either, and cut the basic rate of income tax by a penny to 23p in the pound.

Mr Clarke also widened the lower rate band of income tax, while the married couples’ personal allowance was increased by £40.

Nevertheless, the giveaways were insufficient to stave off a Labour landslide of 179 seats and the Tories lost the 1997 election.

Norman Lamont slashed taxes by raising the personal allowance and lowering the basic rate of income tax to 20 per cent.

He announced a 20 per cent rate of income tax on the first £2,000 of taxable income, rather than an anticipated reduction in the basic rate.

Personal tax allowances were increased in line with inflation, although some were disappointed when the 40 per cent top rate was left untouched.

John Major, the then-prime minister, announced the election the following day, defying expectations and the exit poll to win a majority of 21 seats.

Neil Kinnock, the then-Labour leader, dismissed Nigel Lawson’s 1987 budget as a “bribes budget”.

If it was, it certainly paid off, granting the Conservatives a third term in power under Margaret Thatcher and another landslide victory.

Mr Lawson cut the basic rate of income tax by 2 per cent to 27 per cent. It would be cut to 25 per cent in his budget the following year.

Petrol duty on unleaded petrol was also lowered by 5p a gallon.

Mr Kinnock claimed that the government had opted for “cuts in taxation”, when Britain wanted “cuts in unemployment”. Nevertheless, the Tories were returned to office with a majority of 102 seats.