Jeremy Hunt has said he faces “difficult decisions” before the autumn statement, as he is considering reducing benefits while cutting inheritance tax. The chancellor is thought to be considering £2bn of cuts to benefits, including stopping people who are unemployed but not actively looking for work from claiming free prescriptions and discounted bus travel. If people have been deemed not to be making an effort to find a job, they will have their benefits changed after six months, under plans confirmed by the chancellor before next week’s statement. It follows an announcement in September from the work and pensions secretary, Mel Stride, that disabled people would be made to look for work they could do from home, which could result in their benefits being cut by up to £4,680 a year. Hunt will present his autumn statement on Wednesday, which could be the final one before a general election next year. Speaking to broadcasters during a visit to Milton Keynes on Saturday, the chancellor said: “You are going to have to wait until Wednesday to hear the decisions I take but one thing I want to be very clear about: there’s no easy way to reduce the tax burden. What we need to do is take difficult decisions to reform the welfare state. “When it comes to tax, I know there’s been a lot of speculation, we will not do anything that compromises the battle against inflation. “We’ve succeeded this week in halving inflation compared [with] when I became chancellor and Rishi Sunak became prime minister, that is the single most important thing we’ve done and we will not do anything to jeopardise the progress.” Hunt told the Telegraph on Saturday that with inflation falling below 5% for the first time in two years, it was now a “turning point for the economy”. He is rumoured to be considering a cut to inheritance tax, which is paid by fewer than 4% of all estates. He said it was possible because of falling borrowing costs and rising tax revenues. Cutting or even abolishing inheritance tax has been a long campaign for some Conservative MPs and activists. Doing so before a general election, expected next year, could be an attempt to appeal to Tory voters who are wavering about whether to support the party at the next election. The Times reported on Friday that Hunt was considering reducing it from 40% to either 30% or 20%, and may promise to abolish it altogether in the next Conservative manifesto. Latest opinion polls show Sunak’s party are 20 points behind Labour, which would lead to a landslide majority for the opposition after 13 years of Conservative rule. Ken Clarke, a former chancellor under John Major, said while abolishing inheritance tax could appease some Conservative MPs on the right of the party, it would come under heavy criticism. He told Times Radio: “Well, it’s not the tax cut I would choose. Indeed, I’m not sure he’s got any room for tax cuts. “And choosing inheritance tax at the present time might appeal to the Conservative right, but it leaves them open to the most appalling criticisms when inflation and the state of affairs is making poorer people in this country very vulnerable indeed, giving tax relief to those families that are lucky enough to have members of it with capital above the limit through inheritance tax and pay any significant amount of tax on the inheritance. “And I’m not sure that the economic and financial state of the country justifies it.” Hunt also signalled that he would speak at the Confederation of British Industry’s annual conference on Monday, in a major boost for the troubled body. The chancellor said in April that there was “no point” engaging with the CBI as dozens of its members were deserting it over sexual misconduct and rape allegations. But after a change in leadership, he indicated the government would be re-normalising relations before giving his “autumn statement for growth”. “And so, if we’re going to grow the economy, we’re going to listen to all bodies that represent businesses, whether it’s the CBI or Make UK or the FSB representing small businesses.”