Citing the fall in October’s inflation rate to 4.6%, the prime minister said “now is the time” to focus on economic growth and reducing the tax burden.
by Dylan Donnelly, news reporter
Saturday 18 November 2023 01:31, UK
Prime Minister Jeremy Hunt insisted the economy had “turned the corner” and said tax cuts were likely in next week’s Autumn Statement.
Ahead of Wednesday’s earnings announcement, prime minister said Inflation has been halved in a yearFocus on growth “in this moment”.
But he insisted that “welfare reform” was needed and that supporting businesses was a “priority”.
Mr Hunt is also considering cutting inheritance tax, a move that is sure to draw criticism for supporting wealthy people struggling with high living costs.
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“The big message is tax “There is a path to reducing the tax burden by cutting taxes and a Conservative government will take that path,” he told the Telegraph.
“It’s not an easy path and it takes hard decisions to get there.
“But if we want the economy to grow, and this is going to be a fall statement for growth, then we have to show the country that there is a path to a lower tax economy. we believe.”
Mr Hunt also said he was “personally uncomfortable” with the UK’s tax burden, saying: “Taxes are too high and need to be lowered.”
The Institute for Fiscal Studies (IFS) announced in September that the tax burden is expected to rise from 33% of gross domestic product (GDP) in 2019 to 37% next year.
The group said this would be the largest jump in tax burdens in Congress outside of wartime.
Mr Hunt said the UK’s “benchmarks” were “the most dynamic, energetic and prosperous economies” in North America and Asia, which “generally have low tax burdens”.
According to the Telegraph, Mr Hunt and Rishi Sunak There is a possibility that inheritance tax will be lowered from 40% in the autumn statement.
According to HMRC, only 4% of estates paid inheritance tax in 2021.
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What about inheritance tax?
Former Tory Prime Minister Lord Clarke said he found the move “appalling” despite the fact that Tory right-wing MPs, who are trailing Labor by more than 20 points in opinion polls, have been pushing for tax cuts. He said there may be some members of Congress.
Lord Clarke told Times Radio: ‘Well, that’s not a tax cut that I would choose.Certainly, I don’t know if he has any room for a tax cut.
“And while opting for an inheritance tax at this point may appeal to the conservative right, inflation and the climate have actually made the poor in this country very vulnerable, giving those families tax breaks. Sometimes they are exposed to the most terrible criticism.”Fortunately, members have capital in excess of the inheritance tax limit and are able to pay high taxes on their inheritances.
“And I don’t know if the economic and financial situation in this country justifies that.”
Labor leader Sir Keir Starmer said he would assess the content of the autumn statement before commenting on plans to cut inheritance tax, stressing he wanted to see “serious plans for growth”.
The Telegraph specifically asked whether tax cuts would be included in the budget, but Mr Hunt did not directly answer.
“It does not pre-empt any decisions that the Prime Minister and I will take, this is an autumn statement for growth. It is a turning point for the economy,” he said.
Hunt said Friday. The best way to reduce everyone’s tax burden is to grow the economytouted manufacturing as part of the “next part of the economic plan.”
Elsewhere in his interview with the Telegraph, Mr Hunt said he would stand as an MP in the next election, despite speculation he might resign.
The Liberal Democrats are keeping an eye on the seat he is contesting in Surrey.
“I know this is the fight of my life, but I am up for it and very confident in returning to Congress after the next election,” he said. .