(CTN News) – Jeremy Hunt, the British finance minister, said on Sunday that he would not implement tax cuts that would cause inflation to rise, days before he officially announces a major budget update that is widely expected to include tax cuts as part of it.
There was an article in the Sunday Times on Wednesday stating that Hunt was considering cutting income tax or national insurance as part of his Autumn Statement budget update.
As a result, Prime Minister Hunt is expected to deliver his Autumn Statement on Nov. 22, hoping to revive the fortunes of both a stagnant British economy as well as the governing Conservative Party ahead of an election that is expected to take place in 2019.
In a recent interview with Sky News, Hunt said he had no intention of taking any kind of tax cut that would fuel inflation in the future.
Asked by the Sunday Times if he would cut inheritance tax – a move the newspaper said could be delayed due to bad press – Hunt said before his speech that “everything is on the table.”.
During a crisis caused by the rising cost of living, Labour Party spokeswoman, Harriet Reeves, reiterated that it would be irresponsible to cut inheritance tax in the midst of this crisis.
“If the government could explain where the money is coming from, then I would support lowering taxes on working people if they could explain where the money is coming from,” said Reeves to Sky News, referring to his own experience as a working man.
In light of the heavy state expenditures on the COVID-19 pandemic, as well as the recent spike in energy prices, Hunt’s options have become limited as a result of the state’s heavy expenditures on the pandemic.
Currently, the level of public debt in the country has reached almost 100% of the country’s output, which is a three-fold increase from the percentage in the 1990s, when the public debt was less than 5%.
In spite of this, the official forecasts that are expected to be released on Wednesday are expected to show Hunt has more room to give away before he runs into trouble with fiscal rules than he did in March when he released his annual budget.
According to Hunt, the only way to reduce personal taxes is to spend public funds more efficiently, as he has argued that this is the only way to reduce taxes on personal income.
I am in favor of bringing down our tax burden, and I believe it is very important for a productive, dynamic, booming economy that people are motivated to do the work and to take the risks that we demand from them”, he continued.