UK: Jeremy Hunt to outline over $60 billion in tax rises, spending cuts

British finance minister Jeremy Hunt is reportedly expected to unveil the plan for tax increases and spending cuts. The measures will be unveiled in the upcoming fiscal statement.

According to a report by The Guardian Sunday, Hunt is expected to unveil a plan of up to £60 billion in tax increases, including at least £35 billion in spending cuts. The outlet said that the numbers are still estimates and may still change ahead of the November 17 autumn statement. However, Hunt told staff he was looking for at least 50-60 billion worth of measures.

Hunt and new Prime Minister Rishi Sunak have been looking for ways to cut spending and increase revenue to close up the budget hole that worsened under the economic plans of Sunak’s predecessor Liz Truss.

The early drafts of the autumn statement revealed plans for up to £35 billion of spending cuts and up to £25 billion of tax increases which would likely include freezing income tax thresholds and meeting dividend tax relief, according to the report.

The drafts also said that decisions on whether to raise benefits in line with inflation or to change the “triple lock” pensions would be made in the coming days. This reported measure would be so the Office of Budget Responsibility could include such changes in its forecasts.

In a separate report by the Telegraph Monday, Hunt is also set to announce a tax raid on inheritance ahead of the autumn statement. This comes as Hunt and Sunak have reportedly agreed on freezing the threshold above which people must pay tax for another two years. This means that more people would be subject to paying an inheritance tax.

In another report by the Telegraph on the same day, Sunak is also set to announce a major natural gas deal with the United States following the COP27 climate summit in Egypt.

This comes as the United Kingdom hopes Washington will pledge 10 billion cubic meters of liquefied natural gas in the coming year and that the discussions of the deal are in their last stages, and an announcement could be made in the coming week.