Chancellor of the Exchequer Jeremy Hunt has pledged further tax cuts in the autumn, stressing that the UK economy has “turned a corner”.
In an attempt to clarify the differences before the next election, Hunt accused Labor of planning to raise taxes while portraying the Conservatives as committed to cutting taxes.
In a speech on Friday, Hunt acknowledged the significant financial challenges families face due to the global pandemic and an energy crisis exacerbated by the war in Ukraine. He said the Conservative government had protected people's finances during these turbulent times. Hunt confirmed that inflation had fallen to 3% and claimed that the country was emerging from a shallow recession.
Hunt suggested National Insurance cuts could be expected in the autumn and promised the Conservatives would focus on reducing the overall tax burden in the next parliament. “The economy is in good shape, and there are more tax cuts on the way as we continue to recover,” he stressed.
Criticism of the Labor Party's financial plans
The Tories released a filing claiming Labor had a £38bn gap in its fiscal costs, which they argued 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 spokesman accused the Conservatives of trying to divert attention from their unfunded £46bn tax plan. They argued that this plan could lead to increased borrowing, increase taxes on retirees, or potentially threaten the state pension system. The spokesperson said: “All of Labour's policies are fully costed and fully funded. Unlike the Conservatives who have wrecked the economy, Labor will never play fast or loose on the public finances.”
Electoral battle lines
Hunt's statements come within the framework of a broader effort by the Conservatives to set the agenda for the upcoming elections. He accused Labor of spreading “fake news” regarding state pensions, aiming to reassure older voters about their financial security under a Conservative government.
The speech comes after major press conferences by other key political figures, including Shadow Chancellor Rachel Reeves, Prime Minister Rishi Sunak, and Labor leader Keir Starmer, suggesting both parties are gearing up for the election campaign.
As the political landscape heats up, Hunt's promise of further tax cuts and his criticism of Labour's fiscal plans are intended to bolster 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.