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British finance minister Jeremy Hunt said tax hikes and spending cuts must be done in order to fix the country’s finances. Hunt’s comments come ahead of the anticipated fiscal statement this week.
Speaking on Sky News Sunday, Hunt said that he plans to implement tax hikes and spending cuts to address public finances and restore economic credibility following the backlash towards former prime minister Liz Truss’s economic plan. Despite the plans for tax hikes, Hunt said that low-income households would mostly be spared and that the spending cuts would be balanced.
Hunt said that he does not want to worsen an anticipated recession. However, Hunt explained that being able to lower the budget deficit that spiked during the COVID-19 pandemic and Russia’s invasion of Ukraine.
“You don’t want to do things that make any recession that you may be in worse,” said Hunt. “But on the other hand, if you do nothing, if you don’t show that we’re going to bring our debt down…interest rates get higher and you get a recession that’s made worse.”
“We’re all going to be paying more tax, I’m afraid,” said Hunt. “We will be asking everyone for sacrifices but…we need to recognize that there’s only so much you can ask from people on the very lowest incomes.”
Back in September, Hunt and Prime Minister Rishi Sunak said that hard decisions may be made, especially at a time when households are affected by the 10 percent inflation.
According to a report by the Sunday Times, Hunt intended to address a £55 billion hole in the country’s budget by freezing the thresholds on income tax, national insurance, inheritance tax, and pensions for the next two years.
On Monday, the British government announced that it has signed a $74 million agreement with France to address the issue of illegal migrants crossing the English Channel to enter the country on small boats.
The British interior ministry said the agreement would see a 40 percent increase in the number of UK-backed officers patrolling beaches in France and British officers in French-led control rooms for the first time to bolster coordination.
