UK Conservative chair hints at tax cuts in March and later in year
London – The chairman of Britain’s ruling Conservative Party said the government will announce more of its tax-cutting agenda in March and he hinted that further tax cuts could be made at a second fiscal event later this year, ahead of a national election.
Prime Minister Rishi Sunak has said the time has come to cut taxes after meeting a goal to halve inflation in 2023.
Sunak has also said he believes an election will be held in the second half of 2024.
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Finance minister Jeremy Hunt is due to set out his fiscal plans in an annual budget statement scheduled for March 6.
Conservative Party Chairman Richard Holden said a cut on social security contributions for employees announced by Hunt last November, which recently came into effect, was “the start” of the Conservatives’ plans for tax cutting.
“We’ll see more of that in March, and more of it later in the year as well. We have that new direction of travel, which is clear,” Holden told broadcaster GB News in an interview broadcast on Friday.
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His comment suggested that any election might come after Hunt’s Autumn Statement, an update on the budget which typically takes place in November.
Holden was appointed as party chairman in November and he also serves in Sunak’s cabinet of top ministers, albeit without a specific policy portfolio.
A leading think tank, the Institute for Fiscal Studies, said on Thursday that more tax cuts now would add to the risk of tax rises or spending cuts in the future, given Britain’s heavy public debt burden.