The Chancellor is projecting a change in economic approach next week – REUTERS/Isabel Infantes
Taxes must be lowered to help get the economy “fizzing”, Jeremy Hunt has argued, while also cautioning he must do so responsibly in his Autumn Statement on Wednesday.
But, after a fresh wave of speculation in the Sunday newspapers about which taxes he could cut, Mr Hunt also appeared to try to check expectations for what is to come.
The Sunday Times reported cuts to income tax and national insurance had been looked at by the Treasury ahead of the announcements to be unveiled on Wednesday.
That adds to the inheritance tax cut and business investment tax cut, in the form of extending the so-called “full expensing” scheme, which were known to be in consideration.
In interviews on Sunday morning, Mr Hunt stressed that tax cuts cannot fuel inflation, which at 4.7 per cent is still above the two per cent target. “Rome wasn’t built in a day,” he said.
On the big picture, the Chancellor is projecting a change in economic approach next week, with inflation halved this year despite still being high, with a renewed focus on growth.
That pivot, combined with improved finances after better-than-expected tax receipts, has given Mr Hunt more money to play with while still hitting his debt reduction target.
It has seen the Chancellor talk up the idea that he could cut taxes next week, which is notable after a year in which both he and Rishi Sunak have repeatedly rejected calls for tax cuts.
Mr Hunt said on Sky News on Sunday morning: “I want to bring down our tax burden. I think it’s important for a productive, dynamic, fizzing economy that you motivate people to do the work, to take the risks that we need.”
But there were also notes of caution about how far he would go, with another chance at the Budget next spring, when inflation is forecast to be lower, to cut taxes before the next general election.
Mr Hunt also told Sky: “We need to show there is a path to a lower tax economy.
“If you want to bring down personal taxes the only way to do that sustainably is to spend public money efficiently.
“Rome wasn’t built in a day, so these things take time.”
Speaking to Laura Kuenssberg, Mr Hunt stressed any tax cuts he takes must not be inflationary – Jeff Overs/BBC
He gave a similarly cautious note in his Times Radio interview: “We want taxes to be lower, we will do so in a responsible way.
“I want to show people there’s a path to lower taxes. But we also want to be honest with people. This is not going to happen overnight. It requires enormous discipline year in, year out.”
And on BBC One’s Sunday with Laura Kuenssberg program, Mr Hunt stressed any tax cuts he takes must not be inflationary.
Throughout his interviews, Mr Hunt did not confirm the specific measures that would be taken in the Autumn Statement, which are always closely guarded.
Tax cuts traditionally should be announced to Parliament.
The Autumn Statement will be delivered by Mr Hunt shortly before 1pm on Wednesday.
OTTAWA – Statistics Canada says the country’s merchandise trade deficit narrowed to $1.3 billion in September as imports fell more than exports.
The result compared with a revised deficit of $1.5 billion for August. The initial estimate for August released last month had shown a deficit of $1.1 billion.
Statistics Canada says the results for September came as total exports edged down 0.1 per cent to $63.9 billion.
Exports of metal and non-metallic mineral products fell 5.4 per cent as exports of unwrought gold, silver, and platinum group metals, and their alloys, decreased 15.4 per cent. Exports of energy products dropped 2.6 per cent as lower prices weighed on crude oil exports.
Meanwhile, imports for September fell 0.4 per cent to $65.1 billion as imports of metal and non-metallic mineral products dropped 12.7 per cent.
In volume terms, total exports rose 1.4 per cent in September while total imports were essentially unchanged in September.
This report by The Canadian Press was first published Nov. 5, 2024.
