Gbritain must, according to finance minister Jeremy Hunt with tax increases and spending cuts show that it can demonstrably get its public finances under control again. At the same time, the conservative politician promised on Sunday that poorer sections of the population would be largely spared.
The details of the new budget plans are to be published on Thursday. Debt-financed tax cuts plus high spending plans had led to turbulence on the financial markets in the autumn. First the Finance Minister at the time, Kwasi Kwarteng, had to do the same, followed a little later by the Prime Minister Liz Truss take her hat. The new leadership then did a U-turn with their tax plans.
Hunt told Sky News television that he did not want to deepen the expected recession. But he also had to show that he could reduce the budget deficit. This had shot up during the corona pandemic and now also in the energy crisis in the wake of the Russian attack on Ukraine.
If the budget were not put in order, interest rates would rise even more, worsening the recession. “We’ll all have to pay slightly higher taxes, I’m afraid, but that’s not all bad news.” A strong economy needs good public infrastructure. That is why there will be balanced spending cuts. Hunt added that he will also present a long-term energy strategy.
The minister also announced that he intends to take measures against the acute shortage of skilled workers on the island. If companies feel restrictions when hiring, these would have to be addressed.