By William Schomberg
LONDON (Reuters) – British finance minister Jeremy Hunt will announce on Wednesday how he will try to navigate Brexit. After the shock accelerated the world’s sixth-largest economy, a severe COVID-19 hit and double-digit inflation left it behind its peers.
Hunt – who is due to deliver a Budget speech to Parliament around GMT2024 – has dismissed other lawmakers in the ruling Conservative Party who are now demanding a substantial Tax cuts to rescind ex-Prime Minister Liz Truss’ unfunded cuts The tax plan, which he says leaps in borrowing costs after her “mini-Budget” made clear the limits of relying on the bond market to fund future growth.
Instead, Hunt was promised to ease the UK Tethered by a 2.5 trillion pound ($3.0 trillion) debt load, it will seek to address some of the causes that have persisted in the UK – a chronic economic panic.
“In the autumn, we made the difficult decision, to provide a stable and sound currency,” Hunt will say, based on excerpts from his budget speech. He added: “Today we delivered the next part of our plan: the Growth Budget. “
Britain is the only G7 country whose output is still below pre-pandemic levels, putting pressure on Hunt and Prime Minister Rishi Sunak with the opposition Labor Party in the polls Far ahead.
Labour’s future treasurer Rachel Reeves is trying to keep the heat on Hunt alive by calling for immediate emergency action.
“With Years of economic mismanagement and sticking plaster politics have left us behind, what do we need to see some real ambition from the government,” said Ri
After ruling out massive spending or big tax cuts, Hunter will address a critical shortage of job seekers by changing child care and welfare rules, which he says will Helps put hundreds of thousands of people back to work
The Guardian says Hunt will announce a £4bn expansion of childcare schemes for one- and two-year-olds in the UK.
He is also expected to announce measures to improve skills training and give the green light to 12 investment zones.
Last week, the Labor Party slammed the Government’s ‘messy’ approach to taxing businesses% next month.
To soften the tax blow, Hunter hinted at new incentives for business investment.
He is also under pressure from nurses, teachers and other public sector employees who are on strike for higher wages, while the armed forces say they need more money to maintain support for Ukraine’s war with Russia.
More help with energy
In the short term, households struggling with high inflation and the tax hikes announced by Hunter in November can expect a three-year extension to subsidizing their energy bills Months. Hunter is also expected to extend the decade-long fuel tax freeze.
Treasury says the budget will also provide businesses with more cost-of-living help.
But many economists believe that Hunt will only use about half of the recent 25 public finance windfall, reserving some firepower closer to the next election.
UK government debt to GDP is just under 25% and slightly above the Eurozone average, but far below Below the level of the G7, which includes Japan with a share of more than 140%.
If the UK fiscal watchdog becomes more pessimistic about the economic outlook, Heng Future options may be further restricted.
UK expected to suffer a worse recession than the Budget Office Responsibility ( OBR) forecast a 1230 decline of 1.4% in its November forecast. But later growth forecasts could be lower, reducing tax revenue.
Bond traders polled by Reuters expect government borrowing to be at 2024/19 financial year – less than 140 £bn or 5.5% of GDP forecast by the OBR in November.
(1 USD=0.8222 GBP)
