Jeremy Hunt delivered a speech on Friday laying out plans for economic growth in the UK
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LONDON – British Finance Secretary Jeremy Hunt on Friday signaled that he was stepping up tax increases, while stressing the need to develop Brexit as a “catalyst” for UK growth.
“The best tax cut right now is to cut inflation,” Hunt said in a speech to tech giants, including Amazon, Google and Meta, as he sought to dispel the “gloom.” economics in the UK
Hunt said optimism in the UK economy had been “shortened” in recent months.
Hunt told the companies they were important to the UK’s prospects, but added that “Britain is also important to your future” and asked for their help to make the country a “The World’s Next Silicon Valley”.
Chart to show how the pound moves as Jeremy Hunt speaks.
The Treasury Secretary stressed the importance of making the UK a place where companies want to do business.
He stressed that Britain should have “nothing more than the most competitive tax regime of any major country”, despite reinstating plans to raise corporate tax from 19% to 25% after it canceled by former Finance Minister Kwasi Kwarteng.
The British pound fell 0.25% against the dollar, touching $1.237 after the speech. It recovered some of its losses since Hunt began speaking, but bounced off six-week highs hit on Thursday.
Hunt’s speech came as UK inflation rate most recently hit 10.5% in December, well above the Bank of England’s 2% target. The Bank will next meet to decide on monetary policy on February 2.
