Skip to content
Search

Latest Stories

Tax cuts only after public finances are fixed: Sunak

Tax cuts only after public finances are fixed: Sunak

RISHI Sunak said on Monday (4) that tax cuts could only come once public finances were put on a sustainable footing.

Last month the UK government set out plans to raise taxes on workers, employers and some investors to try to fix a health and social care funding crisis.


Speaking to a packed hall at the governing Conservative Party's annual conference in Manchester, the chancellor of the exchequer said he believed in fiscal responsibility.

"There can be no prosperous future unless it is built on the foundation of strong public finances. And I have to be blunt with you, our recovery comes with a cost. Our national debt is almost 100 per cent of GDP. So we need to fix our public finances," he said, after entering to a standing ovation.

"Yes, I want tax cuts, but in order to do that our public finances must be put back on a sustainable footing."

"Forecasters were predicting unemployment to reach 12 per cent," he recalled of the early days of the lockdown, when, he said, "it really did feel like the world was collapsing.

"The forecasts were wrong. The unemployment rate is at less than five per cent and falling.

"It wasn't that the forecasters had bad models. It's just their models did not take account of one thing, and that was this Conservative government and our will to act," he said.

Now the focus was on "providing the support and skills people need to get into work and get on in life".

Addressing the fiscal conservatives in the audience, Sunak said he wanted tax cuts, but that the "recovery comes with a cost" that needs to be repaid.

Sunak will give a half-yearly update on the public finances and economic outlook on October 27, when he is also expected to outline longer-term public spending plans after his massive coronavirus pandemic stimulus package.

Official data last week showed Britain's economy rebounded more strongly than expected in the second quarter.

But separate indicators point to a growth slowdown, as the country struggles with a supply chain bottleneck and global inflationary pressures that have sent fuel prices rocketing.

The government is grappling with a spate of panic-buying at petrol stations caused by a shortage of tanker drivers, and has mobilised the army to help.

Businesses blame the driver shortage on the government's hardline approach to Brexit, which stopped a flow of workers from eastern Europe, but ministers say the pandemic is to blame.

(Reuters and AFP)

More For You

Piyush Goyal

Piyush Goyal recalled that in February, Narendra Modi and Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025. (Photo: Getty Images)

Getty Images

Trade talks with US moving forward positively, says Indian minister Goyal

INDIA’s commerce and industry minister Piyush Goyal on Thursday said that negotiations on the proposed trade agreement between India and the United States, which began in March, are progressing in a positive atmosphere and both sides are satisfied with the discussions.

He recalled that in February, Indian prime minister Narendra Modi and US president Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025.

Keep ReadingShow less
Baiju Bhatt

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. (Photo: Getty Images)

Baiju Bhatt named among youngest billionaires in US by Forbes

INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)
Getty Images

Economy shows no growth in July amid political turbulence

UK's ECONOMY showed no growth in July, according to official data released on Friday, adding to a difficult week for prime minister Keir Starmer’s government.

The Office for National Statistics (ONS) said gross domestic product was flat in July, following a 0.4 per cent rise in June.

Keep ReadingShow less
India’s IT sector

India’s $283 billion IT industry, which contributes more than 7 per cent to the country’s GDP, has for over three decades provided services to major clients including Apple, American Express, Cisco, Citigroup, FedEx and Home Depot.

iStock

India’s IT sector faces uncertainty as US proposes 25 per cent outsourcing tax

INDIA’s IT sector is facing uncertainty as US lawmakers consider a 25 per cent tax on companies using foreign outsourcing services.

Analysts and lawyers said the proposal has led to customers delaying or re-negotiating contracts, raising concerns in India, the world’s largest outsourcing hub.

Keep ReadingShow less
Rachel Reeves

'Our economy isn't broken, but it does feel stuck,' Reeves said, speaking alongside the release of a finance ministry report on business property taxation, known as rates.

Getty Images

Reeves signals possible changes to business property taxes ahead of budget

CHANCELLOR Rachel Reeves said on Thursday she is considering changes to business property taxes to support small firms looking to expand, as part of her plans to boost growth.

Reeves’ comments come ahead of her annual budget on November 26, at a time when concerns about possible tax rises and inflation are weighing on businesses and households.

Keep ReadingShow less