The UK Chancellor, Jeremy Hunt, has left open the possibility of incorporating income tax cuts into his Autumn Statement. Mr Hunt is currently preparing his speech which will detail government spending plans. Although he is known to be considering reductions on taxes related to income, inheritance and businesses, he emphasised that economic growth was his main priority. The Chancellor expressed the desire to ultimately put the UK on “the path to lower taxes” but would do so in a responsible manner.
According to the Institute for Fiscal Studies, tax levels in the UK are at their highest for 70 years and are therefore unlikely to come down in the short term. However, leading Conservative lawmakers on the right of the party, including former Prime Minister Liz Truss, have been calling for tax cuts ahead of this week’s announcement. This group is pushing for the Chancellor to introduce measures that could help boost economic growth.
Mr Hunt has previously said that tax cuts are “virtually impossible” given the state of the economy and his focus has been more on bringing down living costs. Appearing on the BBC’s programme, Sunday with Laura Kuenssberg, Andy Street, the Conservative mayor of the West Midlands, voiced a preference for tax cuts on businesses.
The Sunday Times has reported that Mr Hunt is considering cuts to income tax or national insurance, and that he may delay the decision on whether or not to cut inheritance tax until the Spring Statement. Mr Hunt dismissed reports of a possible attack on taxes saying, “if you believe the papers there won’t be any taxes left”.
The Chancellor is focusing on creating growth in the economy, to achieve this he will introduce a range of measures and policies. One of the policies already announced is to speed up the time it takes to approve and build pylons, overhead cables and other electricity infrastructure. This could reward households living close to new electricity pylons with an electricity bill discount of £1,000 p.a. for ten years.
On being questioned about the possibility of changes to benefits, the Chancellor refused to be drawn on the detail, however, he said in principle, the Conservatives “don’t believe in parking people in welfare”. The BBC has reported this week that ministers have drawn up large benefit changes for people who are unable to work due to health conditions; the plans would mean people on Universal Credit allowance would have their claims closed if they fail to take steps to find work over six months.
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