British finance minister Jeremy Hunt sought to dampen speculation about big pre-election tax cuts in this week’s budget, saying there had been a worsening in the economic outlook, but he hinted at some help for voters.
The forecasts that underpin the budget “have gone against us,” Hunt told the Sunday Telegraph in comments that appeared designed to counter calls from within his Conservative Party for big giveaways in his annual tax-and-spend speech on Wednesday.
“We don’t have as much of a positive outlook as we had at the end of the Autumn Statement,” he said in an interview, referring to last November’s fiscal update.
“So it’s going to be a budget where we stress the progress we’ve made on bringing down inflation, but also the importance of being responsible with the country’s finances.”
He said there was “a long path” ahead to bring down Britain’s highest tax burden since World War Two.
After a shallow recession in 2023, the economy looks set to grow only slowly in 2024 while demands are mounting for spending on stretched public services and investment. Debt has soared to almost 100% of economic output after the COVID pandemic and the surge in energy prices hammered the public finances.
Nonetheless, Hunt and Prime Minister Rishi Sunak are under pressure to cut taxes to help the party’s flagging fortunes before a national election expected later this year.
Many Conservative lawmakers say the budget represents the last chance of turning around the centre-left opposition Labour Party’s 20-point lead in opinion polls.
Speaking to Sky News on Sunday, Hunt said he would like to cut taxes further possibly as soon as Wednesday.
