Jeremy Hunt says tax cuts unlikely this year as interest rates hiked to control higher than expected inflation
The i says Jeremy Hunt believes tax cuts this year remain unlikely because they could make it harder to control inflation after the Bank of England voted to raise interest rates again.
The Chancellor privately warned that the persistence of high prices will make it harder for him to offer tax cuts or public spending increases in future.
Another minister told i that Rishi Sunak “needs rates to come down” in the next year in order to convince voters that the economy is going in the right direction.
The Bank’s main rate has risen to 4.25 per cent, the 11th consecutive hike, one day after inflation statistics showed that the rate of annual price increases had unexpectedly risen to 10.4 per cent.
Mr Hunt said: “With rising prices strangling growth and eroding family budgets, the sooner we grip inflation, the better for everyone.
“That’s why we support the Bank of England’s actions today and why we will continue to play our part in this fight by being responsible with the public finances, alongside providing cost-of-living support worth an average of £3,300 per household over this year and next.”