The budget for the next fiscal year that the British minister will present, Jeremy Hunt, in Parliament this March 6 will be the last before the general elections, scheduled for the end of the year. As was revealed the day before, there were speculations that the conservative Government of Rishi Sunak would apply extensive tax cuts to gain greater support among the electorate.
However, the Executive faces difficulties due to the weakness of the economy, after the United Kingdom entered a technical recession at the end of 2023 by chaining two consecutive quarters of contraction, while year-on-year inflation is at 4%, above of the Bank of England’s objective of placing it at 2%.
In that sense, Hunt has lowered expectations of a tax cut in his next State budget by insisting this morning that the announcements he will make on Wednesday will be “prudent and responsible”.
“It will be a prudent and responsible budget for long-term growth”Hunt said in statements today to Sky News.
“All conservatives believe that the state has a moral duty to leave as much money as possible in people’s pockets because it belongs to the people who earn that money. But we all know that it is not conservative to reduce taxes, for example, by increasing debt, because then you simply pass the bill to future generations.he remarked.
However, he highlighted that “it would be deeply anti-conservative to reduce taxes in a way that would not fully finance the increase in debt”.
As recalled, the United Kingdom has a high level of debt, after the accumulated net debt of the public sector, excluding banks with state participation, stood at 2.68 trillion pounds (about 3.1 trillion euros) last December. 97.7% of the gross domestic product (GDP), according to official data.
This is 1.9 percentage points higher than in December 2022 and its highest level since the early 1960s.
Ahead of the presentation of the budget, some media anticipate that Hunt may announce new tax measures for owners who have a second home in the United Kingdom and who generate income by renting it out during vacation periods.
With information from EFE
Source: Gestion
Ricardo is a renowned author and journalist, known for his exceptional writing on top-news stories. He currently works as a writer at the 247 News Agency, where he is known for his ability to deliver breaking news and insightful analysis on the most pressing issues of the day.
