Home Finance News Hunt Warns of UK’s Limited Fiscal Headroom for Tax Cuts – Bloomberg

Hunt Warns of UK’s Limited Fiscal Headroom for Tax Cuts – Bloomberg

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Hunt Warns of UK’s Limited Fiscal Headroom for Tax Cuts – Bloomberg

The UK’s Conservative Party conference commenced with Jeremy Hunt, former Foreign Secretary and contender for Tory leadership, stating that there is no fiscal headroom for tax cuts. Hunt pointed to the looming Brexit uncertainty as a reason for caution, stressing that the country must be prepared for any negative repercussions. Meanwhile, he confirmed plans to increase the national living wage to £11 per hour, providing a glimpse into his approach to balancing economic policies and a commitment to supporting workers.

However, the Tory conference also witnessed divisions among ministers, particularly regarding tax policies. Some advocated for tax cuts to stimulate economic growth, while others expressed concerns over the potential impact on public finances. The disagreements highlighted the challenges faced by the Conservative Party in developing a unified economic strategy amidst the ongoing Brexit negotiations and the need to address domestic economic issues.

One of the riskier proposals put forth by Jeremy Hunt is the introduction of a “carrot and stick” approach to revive the Conservative Party’s fortunes. Hunt suggested withholding benefits from individuals who are unwilling to actively seek employment. This controversial measure aims to incentivize job-seeking and reduce dependency on welfare, but it also raises questions about its potential impact on vulnerable populations and the wider social support system. As the conference proceeds, it remains to be seen how these differing policies will shape the Conservative Party’s economic agenda moving forward.

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