UK’s hefty tax cuts mean next finance minister must face up to some hard truths

[LONDON] British finance minister Jeremy Hunt’s latest throw of the dice in his Autumn Statement budget is unlikely to do much to boost the prospects of Prime Minister Rishi Sunak’s Conservative government at the next election, which is likely to be called soon.

Hunt has gambled £20 billion (S$33.8 billion) on the biggest package of tax cuts since 1988. One of the centrepieces of his budget is a cut in national insurance contributions by 27 million workers – by two percentage points, to 10 per cent.

He also announced a permanent tax break for corporate investment, a move cheered by businesses. The government’s fiscal watchdog later said the UK’s overall tax burden was due to rise to the highest levels since World War II.