Jeremy Hunt has pledged that economic growth will be the primary focus in the upcoming budget, following the country’s entry into a recession. The Chancellor emphasized that any tax cuts will be implemented responsibly, in line with the government’s commitment to fiscal prudence. Despite challenges, Hunt remains optimistic, citing signs of improvement in the economy, including slight growth over the past year.
Considering potential constraints on tax cuts, Hunt is exploring adjustments to public spending plans. He emphasized the importance of responsible tax policies, noting the correlation between lighter tax burdens and faster economic growth. However, he cautioned against actions that could exacerbate inflation.
Hunt attributed the recent economic downturn to factors such as inflation and high interest rates but expressed confidence in the economy’s trajectory, highlighting positive indicators like rising wages and declining mortgage rates.
The Office for National Statistics reported a 0.3 percent contraction in GDP at the end of last year, marking the country’s technical recession. Despite this, economists anticipate a relatively mild recession, with business activity showing signs of improvement at the beginning of the year.