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UK chancellor focuses on inflation over tax cuts in growth plan

27th Jan 2023 10:33

(Alliance News) - The UK chancellor, Jeremy Hunt, said the "best tax cut right now is a cut in inflation" as he outlined how he plans to use Brexit and investment outside of London to drive UK economic growth.

Cutting inflation by half is one of Prime Minister Rishi Sunak's top five priorities in the run-up to the next general election.

Hunt, in a speech at Bloomberg's London HQ, said reducing inflation was the "only sustainable way to restore industrial harmony" in Britain as he suggested tax cuts would have to wait.

It comes against a backdrop of public sector strikes over pay and predictions that the UK could be heading for a recession, with inflation standing at 10% according to some measurement forms.

"My party understands better than others the importance of low taxes in creating incentives and fostering the animal spirits that spur economic growth," said Mr Hunt.

"Another Conservative insight is that risk-taking by individuals and businesses can only happen when governments provide economic and financial stability.

"So the best tax cut right now is a cut in inflation."

Hunt also used his speech to lay out a plan for Brexit to become a "catalyst" for growth, while announcing measures designed to increase prosperity outside of the South East of England and London.

By Patrick Daly, August Graham and Anna Wise, PA

source: PA

Copyright 2023 Alliance News Ltd. All Rights Reserved.

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