After Kwarteng’s budget brought down the Truss government, there was much riding on the presentation of the new fiscal plans. Many details were leaked ahead of Hunt’s takeover with the promise to a radical overhaul. It was not surprising that the new government is focusing its efforts on tax increases and spending cuts to fill the gap. “fiscal black hole” This is partially due to rising debt financing costs.
With the fiscal watchdog confirming that the UK is already in recession, it remains to be seen whether Hunt manages to restore confidence not just with the markets but also with the general population, which is threatening to glide into a “doom-loop”.
Hunt’s plan will lift the tax burden for all, as the personal allowance and basic and higher thresholds will be frozen until 2028. The Institute for Fiscal Studies predicts that about 3 million people will be forced to pay higher rates in 2026 by this. The Chancellor also announced that GBP will be the new threshold at which the highest rate of income tax will apply. 150K To GBP 125.14. Kwarteng intended to abolish the top rate of 45%, but instead, it will be applied to more taxpayers.
Hunt said he would not cut capital spending for two…