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Plans to cut income tax will be shelved to put more money into Universal Credit 

Philip Hammond plans to scrap a promised income tax cut to pay for a climbdown on Universal Credit, the Telegraph understands.

The Chancellor is under pressure to find an extra £2 billion to ease the troubled rollout of the benefit scheme after ministers admitted some people will be worse off when they switch to it.

Esther McVey, the Work and Pensions Secretary, is reported to have warned Cabinet colleagues that some recipients of Universal Credit (UC) will be £2,400 a year poorer.

Sir John Major, the former Conservative Prime Minister, warned on Thursday that the Government could trigger "the sort of problems that the Conservative Party ran into with the poll tax" if it did not urgently address…

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