Jeremy Hunt has defended the government’s economic strategy, asserting that the plan to tackle inflation is yielding positive results. Speaking to GB News, he emphasized the importance of addressing inflation, which had surged to over 11 percent, as a prerequisite for sustainable economic growth. While acknowledging the challenging economic data, Hunt highlighted progress in curbing inflation, with expectations of reaching the target rate of 2 percent in the coming months. He expressed confidence that sticking to the current course would eventually enable the Bank of England to lower interest rates, alleviating pressure on the economy and fostering healthier growth.
Responding to calls for interest rate cuts, Hunt underscored the independence of the Bank of England in making such decisions, refraining from political interference. He noted the effectiveness of previous rate hikes in reducing inflation and hinted at a potential future reduction in interest rates, based on discussions within the Monetary Policy Committee and market forecasts.
Addressing queries about corporation tax cuts, Hunt defended the government’s fiscal balancing act to maintain market confidence and prevent soaring debt interest. However, he reiterated his commitment to making the UK’s business tax regime the most competitive globally. He pointed out measures taken to support businesses, such as capital allowances and reductions in National Insurance for self-employed individuals, highlighting the government’s efforts to stimulate investment and economic activity.