LONDON: British Chancellor of the Exchequer Jeremy Hunt on Sunday ruled out tax cuts in this week's Budget, pledging “sensible and responsible” measures for “long-term growth”.
The finance minister was widely expected to cut taxes in Wednesday's budget, seen as a way to close the gap with the main opposition Labor party ahead of the election.
Chancellor Rishi Sunak's Conservative Party is trailing in the polls, with pollsters saying Labor leader Keir Starmer is on track to win the keys to No. 10 Downing Street in the general election later this year. Expect.
Voters hit by the cost of living crisis have repeatedly punished the Conservatives in a series of recent by-elections.
Millions of voters are also struggling with soaring mortgage repayments as the Bank of England's key interest rate remains at 5.25%, the highest level in 16 years.
Mr Hunt told the Sky News television channel: “This will be a smart and responsible budget that supports long-term growth.”
Official data last month showed Britain slipped into recession after the economy contracted in the final two quarters of 2023.
Economists had predicted the recession could be short-lived, but the data is a major setback for Mr Sunak, who has made economic growth his top priority.
But Mr Hunt said he would not cut taxes at the expense of future generations.
“I think the most unconservative thing we can do is borrow more and cut taxes,” he told the BBC.
“Because it's just saying lower taxes and future generations have to collect taxes,” he added.
Mr Hunt will not be involved in any of the tax measures expected in the Budget, but he did announce an £800m ($1.01bn) technology reform package aimed at making public services more efficient and cutting red tape.
As part of the package, police will use drones to assess incidents such as road crashes, and artificial intelligence (AI) will be introduced to speed up the results of cancer scans in the state-run NHS.
“There is too much waste in our system, and we want our public servants to get back to their most important work: teaching our children, keeping them safe, and treating them when they are sick,” Hunt said in a statement.
According to the Sunday Times, the Office for Budget Responsibility told Mr Hunt on Wednesday that he had a surplus of £12.8 billion, £2 billion more than the figure the Treasury was said to have previously based its calculations on. That's less than that.
The finance minister was widely expected to cut taxes in Wednesday's budget, seen as a way to close the gap with the main opposition Labor party ahead of the election.
Chancellor Rishi Sunak's Conservative Party is trailing in the polls, with pollsters saying Labor leader Keir Starmer is on track to win the keys to No. 10 Downing Street in the general election later this year. Expect.
Voters hit by the cost of living crisis have repeatedly punished the Conservatives in a series of recent by-elections.
Millions of voters are also struggling with soaring mortgage repayments as the Bank of England's key interest rate remains at 5.25%, the highest level in 16 years.
Mr Hunt told the Sky News television channel: “This will be a smart and responsible budget that supports long-term growth.”
Official data last month showed Britain slipped into recession after the economy contracted in the final two quarters of 2023.
Expanding
But Mr Hunt said he would not cut taxes at the expense of future generations.
“I think the most unconservative thing we can do is borrow more and cut taxes,” he told the BBC.
“Because it's just saying lower taxes and future generations have to collect taxes,” he added.
Mr Hunt will not be involved in any of the tax measures expected in the Budget, but he did announce an £800m ($1.01bn) technology reform package aimed at making public services more efficient and cutting red tape.
As part of the package, police will use drones to assess incidents such as road crashes, and artificial intelligence (AI) will be introduced to speed up the results of cancer scans in the state-run NHS.
“There is too much waste in our system, and we want our public servants to get back to their most important work: teaching our children, keeping them safe, and treating them when they are sick,” Hunt said in a statement.
According to the Sunday Times, the Office for Budget Responsibility told Mr Hunt on Wednesday that he had a surplus of £12.8 billion, £2 billion more than the figure the Treasury was said to have previously based its calculations on. That's less than that.
