Tax cuts ‘virtually impossible’ at present, says Jeremy Hunt
Jeremy Hunt has said it will be “virtually impossible” to deliver tax cuts until the UK economy improves.
A less gloomy economic outlook and the high cost of living had led to calls for measures to reduce taxes in the Autumn Statement in November.
Speaking on LBC, Chancellor Jeremy Hunt said the country’s high levels of debt left him with some “very difficult decisions.”
The UK’s debt currently stands at 98.8% of GDP, a level not seen since the early 1960s.
With a general election expected as soon as May, and Labour far ahead in the opinion polls, many are wondering what the Conservatives can do to win back ground.
A significant number of Tory MPs argue that keeping taxes at historically high levels, particularly given the high cost of living, is a political mistake.
They want ministers to cut tax – or at least set out a path to doing so.
A slight fall in inflation last month meant the Bank of England kept interest rates at 5.25% after two years of rises, meaning the cost of national borrowing did not increase as some had expected.