Jeremy Hunt has likened himself to former Chancellor of the Exchequer Nigel Lawson, as he teamed up with Rishi Sunak to hint at potential budget cuts in the upcoming spring budget.
In an article for the Mail on Sunday, the chancellor made parallels to the late Lawson, who was renowned for reducing personal taxes during their time in the Thatcher administration.
Hunt stated that, similar to Nigel Lawson’s actions in the 1980s, the City of London has been prepared for a surge in finance during this Conservative government’s tenure. He believes that the UK is well-positioned for the impending technological boom in the near future.
In 1983, Lawson was chosen as the chancellor of the exchequer and served until 1989, during which he presented six budgets. He initiated a tax reduction plan in 1986 with the goal of lowering the basic income tax rate from 30% to 29%. By 1988, the rate had been further reduced to 25%.
The prime minister has made a promise to prioritize tax cuts in order to give people more money in their pockets, which aligns with Hunt’s dedication to reducing taxes.
In an article for the Sun on Sunday, Sunak stated that the government was able to implement a decrease in national insurance payments due to their responsible management of the economy.
In November, Hunt revealed plans to lower the primary national insurance rate from 12% to 10%, which the Treasury claims is the biggest reduction in national insurance to date.
Starting on January 6th, the new policy will go into effect, resulting in an increase for 27 million workers. Although this has been praised as a victory, concerns remain about the frozen personal income tax thresholds until 2028 and how much this policy will truly benefit individuals.
There has been pressure on Hunt to address this fiscal drag, but he has chosen not to do so at this time.
The shadow chief secretary, Darren Jones, stated, “Jeremy Hunt’s words will ring empty to the millions of individuals who have suffered from 14 years of economic disappointment.”
The cost of goods in stores continues to increase, and monthly mortgage payments are skyrocketing. On top of that, the average household can expect to lose £1,200 under the Conservative party’s tax proposal.
The United Kingdom is in need of a new direction and a Labour party leadership, rather than being subjected to another five years of unsuccessful Conservative policies.