Jeremy Hunt promises further tax cuts and criticizes Labour’s plans

Chancellor Jeremy Hunt has promised further tax cuts for the autumn, claiming the UK economy has ‘turned a corner’.

In an attempt to draw a clear distinction ahead of the next election, Hunt accused Labor of planning to increase taxes while positioning the Conservatives as committed to tax cuts.

In a speech on Friday, Hunt acknowledged the significant financial challenges families are facing due to the global pandemic and the energy crisis exacerbated by the war in Ukraine. He argued that the Conservative government had protected people’s finances during these turbulent times. Hunt highlighted that inflation had fallen to 3% and claimed the country was emerging from a shallow recession.

Hunt suggested that cuts to national insurance could be expected in the autumn and promised that the Conservatives would focus on reducing the overall tax burden in the next parliament. He stressed: “The economy is doing well, and further tax cuts are on the way as we continue to recover.”

Criticism of Labour’s financial plans

The Conservative Party released a dossier claiming that Labor had a £38bn gap in financial costs, which they said would necessitate tax rises. Hunt criticized Labor leader Keir Starmer for making vague promises, describing them as “motherhood and apple pie” without concrete plans.

In response, a Labor spokesperson accused the Conservatives of diverting attention from their own £46 billion unfunded tax plan. They argued that this plan could lead to higher borrowing, higher taxes for retirees, or potentially threaten the state pension system. The spokesperson said: “All of Labour’s policies are fully budgeted and fully funded. Unlike the Conservatives who crashed the economy, Labor will never play fast and loose with the public finances.”

Electoral battle lines

Hunt’s comments are part of a broader effort by the Conservatives to set the agenda for the upcoming election. He accused Labor of spreading “fake news” about the state pension, aiming to reassure older voters about their financial security under a Conservative government.

This speech follows major press conferences from other key political figures, including Shadow Chancellor Rachel Reeves, Prime Minister Rishi Sunak and Labor leader Keir Starmer, signaling that both parties are preparing for the election campaign.

As the political landscape heats up, Hunt’s promise of further tax cuts and his criticism of Labour’s financial plans are aimed at strengthening the Conservatives’ position as the party of economic prudence and tax cuts. The upcoming fall budget and the details of these promised tax cuts will likely play a crucial role in shaping voter sentiment as the election approaches.