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Hunt’s spring strategy goes for growth: Chancellor prepares to lay out plans to restart growth and regain control of economic agenda
- Jeremy Hunt will outline some of his ideas ahead of the budget on March 15
- It comes as UK households and businesses face a gloomy New Year
- Hunt’s fall statement left little optimism for voters — or Tory MPs — to hold on to
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Under pressure: Jeremy Hunt wants to focus on policies that kick-start the economy
Chancellor Jeremy Hunt is preparing to lay out plans to restart growth and regain control of the economic agenda.
Hunt will outline some of his ideas ahead of the March 15 budget. It comes as UK households and businesses face a gloomy New Year with the Tories trailing in the polls.
The Chancellor has stabilized markets and averted the crisis caused by Kwasi Kwarteng’s mini-budget. But Hunt’s fall statement on the firefighting left little optimism for voters — or Tory MPs — to cling to.
More misery was piled on taxpayers as the tax burden climbed to its highest level since World War II. Companies will also be affected by the increase in corporate tax from 19 percent to 25 percent from April.
It’s all because strikes paralyze much of everyday life. Despite these woes, a poll of companies by the Institute of Directors (IoD) shows that their confidence in the economy, while still low, is pointing upwards.
Now the chancellor wants to focus on policies that will kick-start the economy. He is believed to believe the recession will be more shallow than predicted and he gave a taste of his thinking in some largely overlooked parts of his fall statement speech.
That included a pledge to change EU regulations in five growth sectors: digital technology, life sciences, green industries, financial services and advanced manufacturing.
The Chancellor’s Reforms in Edinburgh have eased restrictions on the city. Potentially just as important was Hunt’s nod to Rishi Sunak’s Mais lecture in February 2022. That lecture set out the then-chancellor’s aim to cut taxes on business investment to boost money pumped into the economy by private companies. stimulate and increase productivity.
It could revive hopes that a so-called “super deduction,” which expires in March, will be extended. The policy gives large tax benefits to companies that invest in new infrastructure, factories and machines.
Meanwhile, a business confidence index published by the IoD rose from -64 to -58 last month. Kitty Ussher, chief economist at the IoD, said: “It is hugely encouraging that IoD member investment plans are slightly stronger in December than at any point in the past six months.”