Chancellor Jeremy Hunt hints at further tax cuts

Chancellor Jeremy Hunt has strongly suggested that he’s thinking about reducing taxes in the upcoming spring Budget. He believes that countries with lower taxes tend to have faster-growing and more dynamic economies.

In the recent Autumn Statement, Hunt already made some moves, like cutting national insurance for workers by 2% and providing tax relief for businesses. If inflation goes down this year and interest rates follow, Hunt might have room to make more tax cuts.

World Economic Forum in Davos 2024

While at the World Economic Forum in Davos 2024, trying to attract more investment to Britain, Hunt mentioned that economies growing faster than the UK, especially in North America and Asia, usually have lower taxes.

“I believe fundamentally that low-tax economies are more dynamic, more competitive and generate more money for public services like the NHS,” he said.

Although Hunt didn’t give specific details about potential tax cuts, the government is waiting for a forecast from the Office for Budget Responsibility. Many expect that the Chancellor will focus on income tax when presenting the Budget on March 6.