Chancellor Aims to Stimulate Growth with Lower Taxes
Jeremy Hunt, the UK Chancellor of the Exchequer, has announced an ambitious plan to lower taxes in the upcoming Autumn Statement. In a recent interview with GB News, Hunt emphasised the need for the UK to be a “dynamic, thriving, energetic fizzing economy,” advocating for lower tax rates to stimulate economic growth. He cited the economic models of North America and Asia, known for their lower taxes and dynamic economies, as a benchmark for the UK.
Hunt acknowledged the challenges posed by the cost of living crisis, which has been a significant concern for UK residents. In his approach to the Autumn Statement, he stressed the importance of responsible financial measures that do not fuel inflation. The Chancellor pointed to the recent success in halving inflation from over 11% to 4.6%, underlining the government’s commitment to tackling this issue head-on.
With progress on controlling inflation, Hunt’s focus is shifting towards unlocking higher levels of economic growth. He dismissed the pervasive negativity and pessimism about the British economy, highlighting its strengths, particularly in the technology sector. The UK’s tech sector is currently the third-largest globally, a critical asset Hunt believes can drive economic expansion and facilitate tax reductions.
The Chancellor also reflected on the reasons behind the recent tax increases and spending cuts. Factors like the Ukraine invasion and a spike in global energy and food prices necessitated tough decisions to control inflation and government borrowing. Hunt stated that these measures, although challenging, were crucial to the government’s strategy to stabilise the economy.
In his commitment to make the UK a competitive business destination, Hunt emphasised the need to balance taxation fairly among businesses and individuals. He announced plans to overhaul planning rules to facilitate business investment, signaling a proactive approach to economic growth. Story Source