• About
  • Advertise
  • Privacy Policy
  • Contact
Saturday, July 12, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Jeremy Hunt Mulls Spending Cuts To Finance Pre-Election Tax Giveaway

February 15, 2024
Lawrence Ankutseby Lawrence Ankutse
in UK
0
Jeremy Hunt Mulls Spending Cuts To Finance Pre-Election Tax Giveaway

Jeremy Hunt, Chancellor of the Exchequer

Jeremy Hunt is contemplating enacting substantial spending cuts in the upcoming budget to finance tax reductions ahead of pre-elections, according to reports.

Treasury insiders have revealed that the Chancellor is considering implementing “further spending restraint” measures beyond 2025 if official economic forecasts indicate that he lacks the necessary resources to finance “smart tax cuts.”

Reports indicate that Treasury officials were considering lowering the predicted increase in government spending to around 0.75% annually starting in 2025. 

RelatedPosts

UK-France Migrant Swap Deal Sparks Outrage

UK-France Migration Deal Awaits EU Green Light

Conservative Party Shakes As Former Chair Defects To Reform

This measure could free up between £5 billion and £6 billion for tax cuts in the upcoming spring budget.

Economists caution that the proposed plan for a 1% annual real-terms increase in public spending until 2029 is unattainable. Such a plan would necessitate significant reductions in already strained public services.

The necessary reductions would need to be implemented in unprotected departmental budgets, including adult social care and Ministry of Justice funding for courts and prisons. Budget allocations for the NHS and schools are protected.

Torsten Bell, the chief executive of the Resolution Foundation think tank, previously expressed skepticism about Hunt’s generosity, citing it as relying on “implausible austerity.”

Labour contends that Hunt has incorporated these cuts into the plan from 2025 onward as a political maneuver. 

In the upcoming election campaign, the Tories could confront Labour on the choice between making the proposed cuts or increasing expenditure.

If Labour decides to spend more, the Tories could argue Labour is planning to cover that extra spending with tax rises and blame the party for preparing a secret “tax bombshell”.

In anticipation of an upcoming general election later this year, Hunt is evaluating a further reduction in public spending, as tax cuts are perceived as a crucial political tool.

Due to persistently high interest rates, the government’s financial flexibility has diminished as borrowing costs have increased. 

The Bank of England (BoE) chose to maintain the base interest rate at 5.25% for the fourth consecutive month in December. This rate is the one that banks charge other lenders when they borrow money.

A Treasury insider stated, “It doesn’t look like the chancellor will have as much space for tax cuts compared to last autumn, so senior folk internally are starting to look at further spending restraint and productivity gains in the future if the numbers move against us again. It is a tough call, but it isn’t clear whether there will be easier alternatives.”

Hunt faces a dilemma: he wants to reduce taxes without decreasing future spending, a move that would likely attract criticism. 

His decision hinges on the fiscal leeway granted to him by the Office for Budget Responsibility. On Wednesday, February 14,  the Treasury was presented with the most current projections from the organization.

BoE Expected To Cut Interest Rates This Year

boe 2
The Bank of England

The Bank of England is currently facing a delicate balancing act as it navigates the economic landscape in 2024. 

The central bank’s primary tool for influencing the economy is the base interest rate, which directly impacts borrowing costs, spending, and investment decisions.

Despite the current high base rate of 5.25%, policymakers are closely monitoring inflation trends. Inflation has been on the rise, driven by factors such as supply chain disruptions, increased demand, and rising energy prices. 

If inflation falls more rapidly than anticipated, the Bank of England may opt for a rate cut as early as June. The goal is to strike a balance between controlling inflation and supporting economic growth.

However, money markets have already priced in the possibility of four quarter-point cuts to interest rates starting in the summer. 

These reductions could bring the base rate down to as low as 4.25% by the end of 2024. The first cut is expected in May. 

The rationale behind these preemptive rate cuts is to mitigate the risk of a recession. 

By lowering interest rates, the central bank aims to encourage borrowing, spending, and investment, thereby stimulating economic activity during challenging times.

READ ALSO: Call For Labour To Double Investment In Publicly Owned Renewable Energy

Tags: Bank of EnglandJeremy HuntSpending CutsTorsten BellTreasury
Please login to join discussion
Previous Post

Highlighting Reasons For Choosing The GWR Sing-A-Thon Challenge

Next Post

India’s Electoral Bond Scheme Torn Into Shreds

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

Ewurabena Aubynn
General News

NDC’s Ewurabena Aubynn Secures Historic Victory in Ablekuma North Rerun

July 11, 2025
Minority Decries Violence, Police Inaction in Ablekuma North Rerun, Polling, Violence
General News

Minority Decries Violence, Police Inaction in Ablekuma North Rerun

July 11, 2025
BoG’s Ban on 10 Money Transfer Organisations Sparks Transparency Debate
Banking

BoG Stress Test Uncovers Banks’ Credit Vulnerability Amid Strong Liquidity Defences

July 11, 2025
AU Urges Human Dignity In Corruption Fight
Africa

AU Urges Human Dignity In Corruption Fight

July 11, 2025
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Asia

Nearly 800 Killed While Trying To Receive Food Aid In Gaza

July 11, 2025
Shamima Muslim,
General News

Government Condemns Journalist Assaults During Ablekuma North Rerun

July 11, 2025
Ewurabena Aubynn
General News

NDC’s Ewurabena Aubynn Secures Historic Victory in Ablekuma North Rerun

by Evans Junior OwuJuly 11, 2025
Minority Decries Violence, Police Inaction in Ablekuma North Rerun, Polling, Violence
General News

Minority Decries Violence, Police Inaction in Ablekuma North Rerun

by Silas Kafui AssemJuly 11, 2025
BoG’s Ban on 10 Money Transfer Organisations Sparks Transparency Debate
Banking

BoG Stress Test Uncovers Banks’ Credit Vulnerability Amid Strong Liquidity Defences

by Stephen M.CJuly 11, 2025
AU Urges Human Dignity In Corruption Fight
Africa

AU Urges Human Dignity In Corruption Fight

by Lawrence AnkutseJuly 11, 2025
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Asia

Nearly 800 Killed While Trying To Receive Food Aid In Gaza

by Comfort AmpomaaJuly 11, 2025
Shamima Muslim,
General News

Government Condemns Journalist Assaults During Ablekuma North Rerun

by Silas Kafui AssemJuly 11, 2025
Ewurabena Aubynn
Minority Decries Violence, Police Inaction in Ablekuma North Rerun, Polling, Violence
BoG’s Ban on 10 Money Transfer Organisations Sparks Transparency Debate
AU Urges Human Dignity In Corruption Fight
Deadly Rush Confirms Fears About Gaza Humanitarian Foundation
Shamima Muslim,
[/vc_row_inner]

Recent News

  • NDC’s Ewurabena Aubynn Secures Historic Victory in Ablekuma North Rerun
  • Minority Decries Violence, Police Inaction in Ablekuma North Rerun
  • BoG Stress Test Uncovers Banks’ Credit Vulnerability Amid Strong Liquidity Defences
  • AU Urges Human Dignity In Corruption Fight
  • Nearly 800 Killed While Trying To Receive Food Aid In Gaza
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.