Kwarteng is due to make a fiscal statement on Friday, effectively a mini-budget, which is expected to set out new Prime Minister Liz Truss' pro-growth agenda following her election as leader of the Conservative Party earlier this month.
"Taxing our way to prosperity has never worked. To raise living standards for all, we need to be unapologetic about growing our economy," Kwarteng said in a statement.
"Cutting tax is crucial to this."
Kwarteng also said the government would cancel plans to separate out the National Insurance increase and rename it as the Health and Social Care Levy, due to come into force in April 2023.
The 1.25 percentage point increase had applied to the rates levied on both employers and their staff and had been expected to raise 13 billion pounds ($A22 billion) per year.
Kwarteng will also scrap from April 2023 an increase to dividend tax rates which had been brought in alongside the payroll tax increase to raise contributions from those who are paid through different channels.
Truss and Kwarteng are banking on tax cuts to stimulate accelerated economic growth that offsets increasing interest payments on the country's debt and huge spending on a package to help businesses and consumers pay their energy bills.
Truss has promised to scrap a previously planned increase in corporation tax and unconfirmed media reports said the government could on Friday also announce a cut to the tax paid on property purchases.
During the campaign to replace former leader Boris Johnson, Truss had made clear her intention to reverse the National Insurance rise, which had been introduced as a way to fund a health system struggling to cope with backlogs caused by the COVID-19 pandemic.
The measures come against the backdrop of a severe squeeze on household budgets and a troubled economic outlook as energy costs push inflation higher, falling real wages stir industrial unrest, and rising interest rates drive mortgage payments up.
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