UK's Jeremy Hunt to announce tax cuts aimed at reviving stagnant economy
U.K. Finance Minister Jeremy Hunt will deliver his Autumn Statement budget announcement on Wednesday, facing pressure from within the ruling Conservative Party to implement tax cuts as the country's economy stagnates.
Prime Minister Rishi Sunak's government has adopted a cautious approach to fiscal policy in the wake of the bond market panic unleashed by his predecessor Liz Truss' disastrous "mini-budget" last fall.
The U.K. economy flatlined in the third quarter , and Hunt is expected to announce measures intended to bolster the country's anemic growth outlook by attracting business investment and removing barriers to large scale infrastructure projects.
Headline inflation came in at an annual 4.6% in October, its lowest reading in two years and sharply lower than the 11.1% rate when Hunt took over the country's finances in October 2022. However, it remains well above the Bank of England 's 2% target and continues to weigh on household finances.
Hunt will have more money at his disposal than a year ago and is under pressure from the right of his party to enact tax cuts.
Tax levels in the U.K. currently sit at their highest levels since records began 70 years ago, but while Hunt has not decisively ruled out tax cuts, he has emphasized the fragile state of the economy and reiterated that reducing living costs is the government's priority.
The U.K. Treasury last week announced £4.5 billion ($5.6 billion) in funding for British manufacturing to boost investment in eight sectors across the U.K., available for a five-year period from 2025.
