Great Britain: The new finance minister canceled further tax cuts
| Gal Rekover, Devar News
Taxes will not be cut: Jeremy Hunt, Britain’s new Chancellor of the Exchequer, announced on Monday another withdrawal from the tax cut plan, with the British government almost completely backing away from the plan it presented when it was founded less than two months ago.
The withdrawal comes against the background of the turmoil in the markets caused by the new plan. Following the storm, Hunt was last Friday appointed Minister of Finance, after the new Prime Minister Liz Truss fired Kwazi Kwarteng, who served 38 days in the post.
In a press release, Hunt said that the first priority is stability, which will be achieved by signaling to the markets that the British government will behave in a fiscally responsible manner.
Trading in the markets indicates that, at least for the time being, Hunt is achieving his goal. The yields on the British went down, which means that their value went up, and so did the rate.
Hunt announced a series of cancellations on the tax breaks, the most significant of which is the lowering of the basic income tax rate from 20% to 19%. After the round of cancellations, the total remaining tax breaks are £13 billion, out of £45 billion in the original plan.
On top of that, Hunt announced that the energy price freeze policy will remain in place, but only until April, while at the same time the Ministry of Finance prepares an alternative plan with a reduced cost.
Hunt is leading a policy that is the opposite of the policy presented by Truss in her election campaign for the leadership of the party and in the plan she presented together with Kwarteng, and seems to be the dominant factor now in the Conservative government.
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