Rishi Sunak announces plans to cut taxes

(Sharecast News) - Prime minister Rishi Sunak announced his intention to reduce taxes on Monday, after claiming success for his promise to halve inflation by the end of the year ahead of Wednesday's autumn statement. According to Sky News, the move was in response to growing pressure within the Conservative Party to alleviate the tax burden, which currently stands at a 70-year high.

Speaking in north London, Sunak said his stance had always been that taxes could be cut only after inflation and debt were under control.

With inflation confirmed to have decreased to 4.6% by the Office for National Statistics (ONS) last week, Sunak said it was time to "begin the next phase" of the government's plan.

Sky News said it was expected that Chancellor Jeremy Hunt would provide details during his statement in the House of Commons on Wednesday.

In his speech, Sunak expressed his belief in tax reduction while emphasising the need for responsible fiscal decisions.

He cautioned against jeopardising progress in controlling inflation and noted that history showed that tax cuts did not automatically pay for themselves.

The PM also acknowledged the reasons for the initial tax increases, citing Covid-19 and the war in Ukraine, along with the need to support retirees and healthcare as the population ages.

Chancellor Hunt had indicated that the upcoming budget would focus on fostering business growth.

Reporting by Josh White for Sharecast.com.