Britain's economy collapsed, know what Treasury Chancellor said about tax cuts

Controlling inflation is more important than cutting taxes. Britain's Chancellor of the Exchequer Jeremy Hunt said this on Friday. He said in his statement in London that the best tax cut is to bring down inflation.

Let us tell you that Britain's annual inflation rate reached 11.1 percent in October, which is the highest rate in the last four decades. Due to which the general life has been affected and the cost of living has increased. Also, due to the rising prices of food and oil and gas, the workers are continuously going on strike and demanding wage hike. In fact, Prime Minister Rishi Sunak promised last year that he would halve inflation. 

Economy going through tough times

Jeremy Hunt said he wanted Britain to become a low-tax economy but monetary stability was more important in the country due to volatile markets and high inflation. In such a situation, there are indications that the possibility of tax cuts in the annual budget is very less. The UK economy has collapsed due to the Corona epidemic, the Russia-Ukraine war. Even during Liz Truss's short tenure as Prime Minister, the country suffered a lot from wrong economic policies. 

Liz Truss' tax cut plan rattled financial markets, costing loans and sending the pound to an all-time low against the dollar. Most experts believe that the UK economy will shrink in the first half of 2023.

Labor Party criticized

According to Jeremy Hunt, the country will be able to invest up to £100 billion (US$124 billion) over 10 years for infrastructure and clean energy projects after economic sanctions are eased. The opposition Labor Party criticized Hunt's speech. Spokeswoman Rachel Reeves said that the Conservative Party has been in power since 2010 but has no plans for the present, nor for the future.