UK welfare budget could be cut to pave way for tax cuts, says Jeremy Hunt

Chancellor says system has to be mix of carrot and stick' with more assistance to help people find jobs

The UK's welfare budget could be cut to pave the way for Tory tax cuts, the chancellor has said ahead of the party's annual conference in Manchester.

Though Jeremy Hunt said the government was not in a position" to contemplate a decrease in tax immediately, he warned that the welfare budget could be hit further down the line to foot the bill.