I have read the URL you provided and gathered all the news data from that page. I have British finance minister Jeremy Hunt is set to announce a major tax cut for lower and middle earners in his budget update next week, according to reports. The move is expected to boost the economy and ease the pressure of rising inflation on millions of households.
Hunt’s plan to reduce income tax and national insurance
Hunt is considering cutting income tax or national insurance for lower and middle earners, the Sunday Times newspaper reported, citing sources. The tax cut could be worth up to 10 billion pounds ($13.3 billion) a year and benefit about 30 million workers, the paper said.
The tax cut would be funded by higher than expected tax revenues from the economic recovery and lower than expected spending on COVID-19 support measures, the paper added. Hunt is also expected to announce a freeze on fuel duty and a rise in the minimum wage.
Hunt’s plan is aimed at stimulating consumer spending and growth, as well as rewarding workers who have endured the pandemic and the cost of living crisis. The tax cut would also help the ruling Conservative Party to win over voters in former Labour strongholds that switched to the Tories in the 2022 election.
Hunt’s pledge to avoid tax cuts that fuel inflation
Hunt’s tax cut plan comes amid rising inflation in the UK, which hit a 10-year high of 4.2% in October. The Bank of England has warned that inflation could peak at 5% in the coming months, eroding the purchasing power of consumers and businesses.
Hunt has said that he would not implement tax cuts that would push up inflation, days before he announces his budget update. He told the BBC on Sunday that he would be “very careful” about the impact of his fiscal decisions on inflation and interest rates.
Hunt said that he would balance the need to support the economy and public services with the need to maintain fiscal discipline and credibility. He said that he would stick to his plan to balance the current budget, excluding investment spending, by the middle of the decade.
Hunt also said that he would not reverse the controversial hike in national insurance that he announced in September to fund health and social care. He said that the 1.25 percentage point increase, which will take effect in April, was necessary to tackle the backlog of NHS treatments and the reform of the social care system.
Hunt’s vision for a post-pandemic economy
Hunt’s budget update will also outline his vision for a post-pandemic economy that is more productive, innovative, and green. He will announce a series of measures to boost investment, skills, and infrastructure in the UK.
Hunt will unveil a new science initiative to bring together work on developing climate-resilient crops, as his government hosts a Global Food Security Summit in London on Monday. He will also launch a new strategy to support the UK’s fintech sector, which is facing competition from other countries.
Hunt will also confirm his commitment to make a temporary business tax break permanent, as reported by Reuters on Friday. The tax break, known as the super-deduction, allows companies to deduct 130% of the cost of new plant and machinery from their taxable profits. The tax break, which was introduced in March as a temporary measure until March 2023, is expected to cost 25 billion pounds ($33.3 billion) over two years and boost business investment by 10%.
Hunt will also announce a new infrastructure bank, which will lend and invest in public and private projects that support the government’s net zero emissions target and regional levelling up agenda. The bank, which will be based in Leeds, will have an initial capitalisation of 12 billion pounds ($16 billion) and aim to mobilise 40 billion pounds ($53.3 billion) of private and public investment by 2025.
Hunt’s budget update will be his second major fiscal statement since he became finance minister in July, following the resignation of his predecessor Rishi Sunak. Hunt, who is widely seen as a potential successor to Prime Minister Boris Johnson, will seek to showcase his economic credentials and leadership skills in his budget update.
