In a recent speech, Chancellor Jeremy Hunt ruled out tax cuts in favour of introducing inflation-busting measures in the upcoming Spring Budget.
Against the backdrop of pay strikes and the cost-of-living crisis, Mr Hunt said the government will only cut taxes ‘when the time is right’. He insisted that ‘the best tax cut right now is a cut in inflation’. The rate of inflation currently sits at 10.5% – close to a 40-year high.
The Chancellor also said he intends to make use of so-called ‘Brexit freedoms’ to help increase economic growth and productivity.
During the speech, the Chancellor said: ‘Like every G7 country, our growth was slower in the years after the financial crisis than the years before it. But since 2010, the UK has grown faster than France, Japan and Italy. Since the Brexit referendum, we have grown at about the same rate as Germany.
‘The UK is poised to play a leading role in Europe and across the world in the growth sectors which will define this century.’
The Chancellor will present the 2023 Spring Budget on 15 March.