UK's High Debt Levels Make Tax Cuts 'Virtually Impossible', Says Jeremy Hunt

Jeremy Hunt said tax cuts will be "virtually impossible" until the UK economy improves due to high debt levels.
The UK's national debt is at levels not seen since the early 1960s, meaning more money has to be spent on interest payments.
Rising interest rates have increased the cost of servicing the national debt, giving the chancellor less room for tax cuts.
Some Conservative MPs are calling for tax cuts to win back voters ahead of the next election.
But Hunt said there is no "extra headroom" for tax cuts in the Autumn Budget due to high inflation and debt costs.

bbc.com

Relevant topic timeline:

8/22/2023

Public borrowing below forecasts despite July rise

Government borrowing in the UK was lower than expected in July, sparking speculation about possible tax cuts later this year, however, analysts warn that the Chancellor may have little room for such cuts due to weakening economic forecasts and increasing interest rates.

9/3/2023

Chancellor Jeremy Hunt confident 'inflation is coming down' and on track to be halved this year

Chancellor Jeremy Hunt is confident that his plan to reduce inflation in the UK is working and will alleviate financial strain on households, despite criticism from experts and opposition politicians. He believes that sticking to the plan and reducing inflation will ease the pressure on families and businesses and lead to economic growth. However, some Conservative colleagues may disagree with his focus on public sector productivity rather than tax cuts. Labour's shadow chancellor, Rachel Reeves, criticized Hunt for being out of touch with the economic realities faced by families and called for investment in the economy to benefit working people.

9/30/2023

Hunt aims to cut taxes by boosting efficiency, but rules out short-term tax cuts despite record highs

Chancellor Jeremy Hunt wants to reform public services and the benefits system in order to stop the "vicious circle of ever-rising taxes," despite pressure from senior Tories for tax cuts.

10/1/2023

Hunt to Announce Minimum Wage Increase to £11 per Hour, Resists Tax Cut Demands

British finance minister Jeremy Hunt will announce a rise in the minimum wage and ignore calls for tax cuts in his annual Conservative party conference speech.

10/1/2023

Hunt Resists Calls for Tax Cuts Amid High Inflation, Raises Minimum Wage Instead

UK Finance Minister Jeremy Hunt dismisses calls for tax cuts within the Conservative Party, stating that he cannot commit to any reductions before the next election due to concerns about inflation.

10/17/2023

IFS: Limited Room for Tax Cuts or Spending Due to High Debt and Weak Growth

The UK is in a "horrible fiscal bind" and there is no room for tax cuts or spending increases before the next election, warns the Institute for Fiscal Studies (IFS), as the country faces a significant rise in the tax burden and a potential recession, with interest rates being forced even higher.

10/22/2023

UK Inflation Stays High but May Peak Soon as Core Prices Ease; BoE Expected to Hold Rates

The UK economy is facing uncertainty as policymakers consider the next interest rate decision and Chancellor Jeremy Hunt may further squeeze the economy despite demands for tax cuts, with inflation remaining stable and food prices remaining high, while geopolitical tensions in the Middle East pose a threat to global energy markets.

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Posted 9/22/2023, 7:15:03 AM

UK's High Debt Levels Make Tax Cuts 'Virtually Impossible', Says Jeremy Hunt

Jeremy Hunt said tax cuts will be "virtually impossible" until the UK economy improves due to high debt levels.
The UK's national debt is at levels not seen since the early 1960s, meaning more money has to be spent on interest payments.
Rising interest rates have increased the cost of servicing the national debt, giving the chancellor less room for tax cuts.
Some Conservative MPs are calling for tax cuts to win back voters ahead of the next election.
But Hunt said there is no "extra headroom" for tax cuts in the Autumn Budget due to high inflation and debt costs.

bbc.com

Relevant topic timeline:

8/22/2023

Public borrowing below forecasts despite July rise

9/3/2023

Chancellor Jeremy Hunt confident 'inflation is coming down' and on track to be halved this year

9/30/2023

Hunt aims to cut taxes by boosting efficiency, but rules out short-term tax cuts despite record highs

Chancellor Jeremy Hunt wants to reform public services and the benefits system in order to stop the "vicious circle of ever-rising taxes," despite pressure from senior Tories for tax cuts.

10/1/2023

Hunt to Announce Minimum Wage Increase to £11 per Hour, Resists Tax Cut Demands

British finance minister Jeremy Hunt will announce a rise in the minimum wage and ignore calls for tax cuts in his annual Conservative party conference speech.

10/1/2023

Hunt Resists Calls for Tax Cuts Amid High Inflation, Raises Minimum Wage Instead

UK Finance Minister Jeremy Hunt dismisses calls for tax cuts within the Conservative Party, stating that he cannot commit to any reductions before the next election due to concerns about inflation.

10/17/2023

IFS: Limited Room for Tax Cuts or Spending Due to High Debt and Weak Growth

10/22/2023

UK Inflation Stays High but May Peak Soon as Core Prices Ease; BoE Expected to Hold Rates