UK unveils budget amid ‘unprecedented global headwinds’ – US$65 billion of tax hikes and spending cuts
- Britain’s Finance minister Jeremy Hunt announces US$36 billion in spending cuts and about US$28 billion in tax increases
- Emergency budget aims to restore the government’s financial and political credibility after former PM Liz Truss announced US$53 billion in unfunded tax cuts
Britain faces “unprecedented global headwinds,” Treasury chief Jeremy Hunt said Thursday as he announced an emergency budget aimed restoring Britain’s economic credibility and patching up the nation’s battered finances.
Hunt unveiled tax increases and spending cuts in a bid to tame double-digit inflation and rein in a growing deficit. He says the budget will “tackle the cost-of-living crisis and rebuild our economy.”
Just three weeks after taking office, Prime Minister Rishi Sunak’s government faces the challenge of balancing the nation’s budget while helping millions of people slammed by a cost-of-living crisis as Russia’s war in Ukraine pushes up energy prices and slows economic growth.
“Today’s statement will help deliver the long-term stability this country needs,” Sunak promised in a promotional video released ahead of the statement.
Hunt said the government would increase a windfall tax on oil and gas firms and extend it to power generation firms as he seeks to raise money to plug a major hole in the public finances.
