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UK minister dampens down hopes of tax cuts as election looms

Monday, 4 March 2024


LONDON, Mar 03 (AFP): British finance minister Jeremy Hunt on Sunday talked down the likelihood of tax cuts in this week's budget, pledging "prudent and responsible" measures "for long term growth".
The Chancellor of the Exchequer had been widely expected to cut taxes in Wednesday's budget, in a move seen as a way of closing the gap on the main opposition Labour Party ahead of elections.
Prime Minister Rishi Sunak's Conservative Party is trailing in the polls with pollsters predicting that Labour leader Keir Starmer in on track to win the keys to number 10 Downing Street at a general election later this year.
Voters, hit by a cost of living crisis, have repeatedly punished the Conservatives in a string of recent by-elections.
With the Bank of England's main interest rate sitting at a 16-year high of 5.25 per cent, millions of voters are also suffering from soaring mortgage repayments.
"It's going to be a prudent and responsible budget for long term growth," Hunt told Sky News television channel.
Official data last month showed Britain had sunk into recession after the economy shrank in the final two quarters of 2023.
While economists predicted that the recession could be short-lived, the data has been a big setback for Sunak, who has placed economic growth as a key priority.
But Hunt said he would not cut taxes at the expense of future generations.