Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Hunt hints further tax cuts could be announced in spring budget

by January 21, 2024
January 21, 2024
Hunt hints further tax cuts could be announced in spring budget

The Chancellor, Jeremy Hunt, has given a strong hint that he wants to cut taxes in the spring Budget.

Mr Hunt said that countries with lower taxes have more “dynamic, faster growing economies”.

In the Autumn Statement, the chancellor reduced national insurance for workers by 2% and announced tax relief for businesses.

If inflation falls, followed by lower interest rates, Mr Hunt may consider he has scope for further tax cuts.

Mr Hunt was speaking during his visit to the World Economic Forum, in Davos, Switzerland, where he is hoping to lure more investment to Britain.

He said the “direction of travel” indicates that economies growing faster than the UK, in North America and Asia tend to have lower taxes.

“I believe fundamentally that low-tax economies are more dynamic, more competitive and generate more money for public services like the NHS,” he added.

Mr Hunt did not offer any further detail on the scale of potential future tax cuts, as the government awaits a forecast from the Office for Budget Responsibility.

However, it is widely expected that the chancellor will focus on income tax in the Budget on 6 March.

Currently, the overall tax burden is on course to rise to the highest level for decades as households are pushed into higher income tax brackets as a result of tax thresholds remaining at the same level for more than two years.

Usually tax thresholds rise in line with inflation, the rate at which prices increase,but the government has kept them at the same level since 2021 and they will remain frozen until 2028.

Liberal Democrat Treasury spokesperson Sarah Olney MP said: “People have been left poorer by years of economic mismanagement under this government, and none of Jeremy Hunt’s vague promises can change that fact.

“We urgently need to boost investment in skills and the NHS to get people back into work and the economy growing again.”

While it is hoped that inflation will fall as the year goes on, it unexpectedly ticked up to 4% in December from 3.9% in November.

The chancellor said he was “confident” that inflation will continue to fall and that prices were “heading in the right direction”.

He said on Thursday: “I think it’s coming down. I think it will continue to fall.”

Lower inflation could help to pave the way for faster interest rate cuts by the Bank of England, as well as reducing the government’s huge debt interest bill.

In a bid to curb inflation, the Bank of England has held interest rates at 5.25% at its last three meetings, but rates are expected to be cut this later this year.

Lower debt interest payments alone could strengthen the chancellor’s hand in cutting taxes to the tune of almost £15bn.

However, the UK still remains at risk of recession, after official growth figures showed the UK economy shrank between July and September. A recession is usually defined as when the economy contracts for two three-month periods – or quarters – in a row.

While Mr Hunt insisted that it was “too early to know the extent to which we’ll be able to cut taxes”, he said the rapid fall in inflation was a sign that Britain’s economic prospects are improving.

Read more:
Hunt hints further tax cuts could be announced in spring budget

0
FacebookTwitterGoogle +Pinterest
previous post
Asa Hutchinson shares support for Nikki Haley ahead of New Hampshire primary, says Trump trying to ‘divide’
next post
DeSantis cancels NBC, CNN appearances Sunday over scheduling issue ahead of New Hampshire primary

You may also like

Addison Lee up for sale as owners explore...

July 3, 2024

Royal Mail boss Simon Thompson to step down

May 15, 2023

Ocado to close its Hertfordshire warehouse with 2,300...

April 26, 2023

Playground Funding Options

February 10, 2023

Hunt ‘brings back Sid’ as he announces public...

November 22, 2023

Jaguar Land Rover celebrates decade-high profits as EV...

May 14, 2025

From pitch to partnership: Building long-term value with...

June 25, 2024

Trump tariffs latest: 90-day pause announced, but China...

April 9, 2025

Frasers group launches £83m takeover bid for mulberry...

September 30, 2024

Bitcoin hits record $94,000 as trump vows to...

November 21, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • House Tax Bill Doesn’t Kill Green New Deal Subsidies Fast Enough

      May 15, 2025
    • UAE’s president bestows highest civilian honor on Trump

      May 15, 2025
    • US military would be unleashed on enemy drones on the homeland if bipartisan bill passes

      May 15, 2025
    • House Dems open investigation into Trump’s acceptance of $400 million jet from Qatar

      May 15, 2025
    • Wagyu Farmer in Congress Wants Tariffs on Australian Wagyu

      May 15, 2025
    • Young Americans Like Socialism Too Much—That’s a Problem Libertarians Must Fix

      May 15, 2025

    Categories

    • Business (7,968)
    • Investing (1,963)
    • Politics (15,235)
    • Stocks (3,084)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved