Beijing, 13 Nov (Xinhua) -- British Chancellor of the Exchequer Jeremy Hunt said in a media interview published on 13 November that he will specify a tax increase plan in the budget plan to be released in a few days to restore the public financial situation and reduce the impact of a possible long-term recession.
In an interview with The Sunday Times, Hunt said Britain faced a "momentous moment" in making a choice and must prioritize the interests of the people. Although the tax increase is contrary to his original intention to join politics, he must now do the "right thing" for the country and the situation.
On October 14, Jeremy Hunt walked out of the Prime Minister's House at 10 Downing Street in London, England. Photo by Xinhua News Agency reporter Li Ying
"Unfortunately, it does mean a tax increase." Hunter said.
Hengtai announced the budget plan on the 17th, which will be the first budget plan released by Hunt after the new government came to power. According to the Sunday Times, in the face of the "hole" in the British budget of 55 billion pounds ($65 billion), Hunt intends to take measures such as maintaining the threshold or exemption of taxes such as personal income tax and inheritance tax unchanged, halving the capital gains tax exemption and lowering the "threshold" for the collection of high personal income tax rates from 150,000 pounds ($180,000) to 125,000 pounds ($150,000) a year.
Hunt could extend energy subsidies for six months with a £20 billion ($23.6 billion) in funding, an amount equivalent to one-third of the previous six months. According to this data analysis, the British people's energy bill will inevitably rise. Hunt, however, is considering a package of measures to support pensioners and benefit recipients.
People walk near the Bank of England in London, England, on January 24. Xinhua News Agency (Photo by Tim Ireland)
Hunter is expected to issue a similar view to the Bank of England on the British economic expectations at that time, that is, the United Kingdom faces a long-term recession. "The question is not whether there is a recession, but what we can do to make the recession shorter and less severe," said Hunt, who would seek to work with the Bank of England to curb inflation.
This is the item in a shopping basket photographed at a supermarket in Manchester, England, on October 7. Xinhua News Agency (Photo by Jon Hueper)
The UK government is trying to revive investor confidence in the UK economy. Former Prime Minister Elizabeth Truss introduced massive tax cuts in late September, triggering a massive shock in the UK's financial markets, followed by the resignation of then-Chancellor of the Exchequer Kwasi Kwarten, as did Truss on October 20. The new Prime Minister Rishi Sunak took office on the 25th of the same month, forming a new cabinet, with the then Chancellor of the Exchequer Hunt and the Minister of Defense, Foreign Affairs and other important positions remaining in office.
Sunak also became the fourth Conservative prime minister since 2016. Speaking at 10 Downing Street in London, Sunak said Britain was facing a "huge economic crisis" and that the new government's focus was on stabilizing the economy and restoring confidence, "which means that tough decisions are about to be made." (Chen Lixi)
Source: Xinhua News Agency