Skip to content
Search
AI Powered
Latest Stories

Hunt dampens down hopes of tax cuts as election looms

Hunt dampens down hopes of tax cuts as election looms
Jeremy Hunt (Leon Neal/Getty Images/File Photo )
Getty Images


Chancellor Jeremy Hunt on Sunday talked down the likelihood of tax cuts in this week's budget, pledging "prudent and responsible" measures "for long term growth".

Hunt had been widely expected to cut taxes in Wednesday's budget, in a move seen as a way of closing the gap on the main opposition Labour Party ahead of elections.


Prime minister Rishi Sunak's Conservative Party is trailing in the polls with pollsters predicting that Labour leader Keir Starmer in on track to win the keys to number 10 Downing Street at a general election later this year.

Voters, hit by a cost of living crisis, have repeatedly punished the Conservatives in a string of recent by-elections.

With the Bank of England's main interest rate sitting at a 16-year high of 5.25 percent, millions of voters are also suffering from soaring mortgage repayments.

"It's going to be a prudent and responsible budget for long term growth," Hunt told Sky News television channel.

Official data last month showed Britain had sunk into recession after the economy shrank in the final two quarters of 2023.

While economists predicted that the recession could be short-lived, the data has been a big setback for Sunak, who has placed economic growth as a key priority.

But Hunt said he would not cut taxes at the expense of future generations.

"I think the most unconservative thing I could do would be to cut taxes by increasing borrowing," he told the BBC.

"Because that's just cutting taxes and saying that future generations have to pick the tax up," he added.

Although he would not be drawn on tax measures expected in the budget, he did announce two packages of measures due to be included in the budget.

The first, said to be worth £360 million, would be for research and development and manufacturing projects across the life sciences, automotive and aerospace sectors.

Hunt said the investment would make the UK a "world leader in manufacturing" securing the "highly skilled jobs of the future".

Another package, worth £800m, included technology reforms designed to make public services more efficient and reduce paperwork.

As part of the package, police will use drones to assess incidents such as traffic collisions and artificial intelligence (AI) will be deployed to speed up the results of cancer scans in the National Health Service.

"There is too much waste in the system and we want public servants to get back to doing what matters most: teaching our children, keeping us safe and treating us when we're sick," Hunt said in a statement.

According to The Sunday Times, the Office for Budget Responsibility told Hunt on Wednesday that he has £12.8 billion of headroom to play with –- more than £2 billion less than the figure the Treasury is said to have previously been basing its calculations on.

(AFP)

More for you

Volumatic welcomes new FCA rules safeguarding access to cash

Volumatic welcomes new FCA rules safeguarding access to cash

As industry leaders is cash handling, Volumatic has long supported the use of cash and the importance of maintaining access to cash for both consumers and businesses. The company recognises the importance of the new set of rules created by the Financial Conduct Authority (FCA) two months ago, to safeguard access to cash for businesses and consumers across the UK.

Since introduction, the new rules are intended to ensure that individuals and businesses who rely on cash can continue to access it and the outcome has already sparked the creation of 15 new banking hubs across the UK, including one in Scotland, with many more to follow.

Keep ReadingShow less
Jisp unveils new NPD service

Jisp unveils new NPD service

Retail technology company Jisp has launched an NPD service as part of its new Direct to Retailer business unit.

The new NPD service will allow brands to launch or trial new products in a guaranteed number of convenience store locations, with on the ground review of execution by Jisp’s retail growth manager team, and performance data and insights deliverable through its scanning technology and back-office systems.

Keep ReadingShow less
Tesco launches price cuts in Express convenience stores
File image of Tesco Express

Tesco launches price cuts in Express convenience stores

Tesco is slashing the price of more than 222 own-brand and branded products in its Express convenience stores.

Essentials including milk, bread, pasta and coffee are included in the lines which have been reduced in price by an average of more than 10 per cent at Tesco Express stores. The retail giant has made more than 2,800 price cuts across stores in recent months. With 2,048 of convenience stores at the end of the 2023-24 financial year, Tesco aims to benefit hundreds of thousands of customers from the cheaper deals.

Keep ReadingShow less
vape and cigarette
Photo: iStock

One in five ex-smokers in England now vape, study finds


Summary
1. One in five people who have successfully quit smoking in England currently vape, with an estimated 2.2 million individuals using e-cigarettes as a smoking cessation tool.
2. The increase in vaping among ex-smokers is largely driven by the use of e-cigarettes in quit attempts, with a rise in vaping uptake among people who had previously quit smoking for many years before taking up vaping.
3. While vaping may be a less harmful option compared to smoking, there are concerns about the potential long-term implications of vaping on relapse risk and nicotine addiction. Further research is needed to assess the impact of vaping on smoking cessation outcomes.


Keep ReadingShow less
Bira engages with Treasury on Budget fallout, business rate reform
(Photo by Christopher Furlong/Getty Images)
Getty Images

Bira engages with Treasury on Budget fallout, business rate reform

Independent retailers association Bira has held a meeting with members of the Treasury team to discuss concerns following its robust response to the Government’s recent Budget announcement.

The Budget, labelled by Bira as "devastating" for independent retailers, was met with widespread indignation from Bira members.

Keep ReadingShow less