Chancellor Jeremy Hunt will also consider cuts to inheritance and business tax alongside billions of pounds in social security cuts in his Autumn Statement. Mr Hunt said on Friday that there is a need to “reform our welfare system” as he said the “priority” for Wednesday’s financial announcement is helping firms. However, although the government is considering reducing inheritance taxes, it will inevitably be criticized because it will support the wealthy who are struggling with high living costs. Conservative former chancellor Lord Clarke said the move might be pleasing to Conservative MPs seeking tax cuts, but other MPs would find it "appalling". Normally, when the Minister increases working age allowances he uses the September inflation rate. This means he will receive an increase of 6.7%. But Mr Hunt did not rule out using a much lower figure of 4.6% for October. Asked about the possible move in an interview with the BBC, the Chancellor said: “We will always be a compassionate Conservative government but part of how we make our economy successful is by making sure companies like this company can find the staff they need. “Nearly a million vacancies across the economy, so we do need to reform our welfare system.” Sources said a decision on the figures is yet to be made. Ministers have already announced a new crackdown on welfare and are trying to get people back to work under a tougher sanctions regime. Free prescriptions and legal aid for benefit recipients who are considered fit for work and are not looking for work will be discontinued. There are hopes the final forecasts from the Office for Budget Responsibility will give Mr Hunt more “fiscal headroom” than expected to make tax cuts when he receives them on Friday.