According to British Chancellor of the Exchequer, Jeremy Hunt, the UK's economic outlook has “deteriorated significantly.” He made the comments during an interview in The Sunday Telegraph.
The deteriorating economic outlook will also have an impact on the UK's annual budget, which will be presented this week. Hunt has previously tried to play down rumors of big tax cuts ahead of the election.
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Hunt told the British newspaper, “The expectations of the British Economic Regulatory Authority were not completely in our favor.” “The outlook is by no means as positive as it was at the end of autumn. Therefore, in our budget we will mainly emphasize the progress we have made in reducing inflation in our country, but also the importance of responsibly handling financial affairs.
Extreme pressure
Hunt and British Prime Minister Rishi Sunak are under intense pressure from the Conservative Party to which they belong to cut taxes in the hope of halting the decline in the Conservative Party's popularity. Especially given that Labor is so far behind in the opinion polls for the national elections scheduled for later this year.
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Hunt said in the same interview that a tax cut financed by the loan “would not be a real tax cut.” With his budget he wants to show the “new path”.
