Hunt Faces Pressure on Taxes But Limited Room for Cuts Ahead of U.K. Budget Update
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Hunt says he will not implement tax cuts that increase inflation ahead of his budget update on Wednesday. He is under pressure from some Conservatives to cut taxes.
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Hunt believes the British economy has turned a corner as annual inflation fell to 4.6% in October.
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Hunt's options are limited after heavy COVID pandemic spending and last year's energy price surge. Public debt is close to 100% of GDP.
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Official forecasts expected Wednesday may show Hunt has more room for stimulus before breaking fiscal rules than in March budget.
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While UK tax revenue is at highest since 1940s, country's tax rate is lower than most western European countries.