A DORSET MP has bemoaned Jeremy Hunt’s adoption of the “socialist way” despite the party “staring down the barrel of a gun”.

Richard Drax said the Tories needed “crystal clear blue water” between them and Labour, but the chancellor had pursued a “very cautious” approach and his budget lacked a “bombshell” announcement.

The MP for South Dorset said his preferences included abolishing inheritance tax, lowering income tax and simplifying the tax system.

Mr Hunt announced a 2p reduction in national insurance from April and said the status for wealthy overseas UK residents would be abolished, putting the £2.7 billion a year raised as a result towards tax cuts.

Non-dom status allows foreign nationals who live in the UK, but are officially domiciled overseas, to avoid paying UK tax on their overseas income or capital gains.

Mr Drax, speaking during the final day of the budget debate, told the Commons: “It comes to a pretty pass, I regretfully say, when a Conservative government has to plunder the opposition’s policies in a budget. I’m talking about scrapping the non-dom tax status and extending the windfall tax on oil and gas companies.

“The latter is especially nonsensical for a number of reasons, not least because we want to reduce our reliance on foreign imports.”

Mr Drax, a former army officer, said the budget had “no more money for our stretched and depleted armed forces”, but it did contain a “whisper” about an ambition for defence spending to rise to 2.5 per cent of GDP when possible.

He said: “That’s simply not good enough when we live in such dangerous times, and I wish we’d stop plucking spending targets out of thin air.”

Mr Drax also said: “The chancellor’s key rabbit was a further reduction in national insurance, which has not endeared pensioners who don’t pay the tax.”

He also said it was “hardly Conservative doctrine” for workers to be “dragged” into higher rates of tax.

Mr Drax added: “When I heard the Chancellor speak about the importance of lower taxes and allowing people to keep more of their hard-earned money I was expecting a bombshell of an announcement during his speech.

“For example, abolishing inheritance tax, lowering income tax – which I would’ve personally chosen myself, not national insurance – lowering corporation tax to encourage growth, simplifying the tax system, less state, less regulation, reforming business rates, curbing many of these bloated quangos if not scrapping them altogether, and returning control to elected ministers.

“With our party staring down the barrel of a gun it was time to be bold and courageous.

“I totally accept the chancellor is dealing with unprecedented times – disease, wars, a vast debt and an increasingly unstable world no doubt all played a part in his very cautious approach.

“But where have we made the savings? Why do we think – like the opposition benches – that the state has all the answers? The key to a successful economy and growth is a thriving private sector whose taxes pay for the public sector.”

Mr Drax said the budget has its “good points but they’re tinkering at the edges”, adding: “After 14 years in this place I find it remarkable that Labour is sitting there quietly on its spending priorities.

“I ask the question why and I fear because – if they win the election – they simply will endorse ours.

“What we needed was crystal clear blue water from this party. Instead, we’re pursuing the socialist way – punish those who earn more by working hard for their families, all to pay for a bigger state that is both unaffordable and which runs contrary to every single Conservative value.”