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Jeremy Hunt's Budget had 'three big positives' to get UK growing, top economist says
2024-03-07 00:00:00.0     每日快报-政治     原网页

       

       Jeremy Hunt delivers his Budget in the Commons yesterday (Image: PA)

       Jeremy Hunt’s Budget included three key points to boost Britain’s economy and also put “clear blue water” between the Tories and Labour, an economist has said.

       The Chancellor outlined his package of measures during an hour-long statement in the House of Commons yesterday, including knocking two pence off national insurance.

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       Mr Hunt has faced criticism in some quarters - for example from Tory MP and Brexiteer Sir Jacob Rees-Mogg - who suggested he should have gone further, and accused him of “tinkering”.

       Mr Jessop, research fellow at the Institute for Economic Affairs, told Express.co.uk: “I think there were three big positives to take out of it.

       “One is that, in a sense, the fact that he has not been too bold means actually has avoided one obvious trap, which is if he had really done a lot, then that might have scared the Bank of England and prevented them from cutting interest rates.

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       “Probably the most important thing that can happen over the next few months is that inflation does indeed fall to two percent or lower, and the Bank of England can start cutting interest rates.

       “So one sort of lining for not being very bold is that at least we're going get interest rate cuts.”

       Mr Jessop continued: “The second point is that I think what he said about public services was very sensible.

       “That we should try and do more, with the same amount of money rather than just continuing having a bigger and bigger state.”

       Focusing on productivity and investment in the NHS, incorporating modern technology and digitisation was “really positive” and a “good direction to go in”, Mr Jessop stressed.

       He added: “There is clear blue water here between him and the and Labour.

       “Labour will just spend more money. But I think already here there are clear signs that the Tories spend the same money more wisely.

       Rachel Reeves, the Shadow Chancellor (Image: PA)

       “And then the third thing, of course, was the cut to national insurance now.

       “I know the tax burden is rising overall, but it's a step in the right direction. It has signalled a clear plan to get national insurance down further as the economy recovers and public finances improve.”

       As such Mr Hunt had demonstrated that the Tories had a plan where Labour did not, Mr Jessop suggested.

       He explained: “You may not like that plan, but at least it’s a direction of travel and it does make sense to rebalance tax away from taxes on work, like national insurance.”

       Highlighting Labour’s lack of a plan was a “strong attack”, Mr Jessop argued.

       He said: “I heard Jeremy Hunt and then Rachel Reeves on Times Radio this morning and though neither performed brilliantly, at least Jeremy Hunt had a story to tell whereas Rachel Reeves was flailing around.

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       Prime Minister Rishi Sunak (Image: Getty)

       From now until Prime Minister Rishi Sunak opted to call a general election was a “communication war”, Mr Jessop pointed out.

       He said: “The Tories need to explain what they're doing more clearly.

       “For example, I saw an opinion poll yesterday from YouGov, suggesting that a large majority of people would rather income tax be cut instead of national insurance.

       “Now that doesn't really make sense, national insurance is a better tax to cut but they need to explain that better.

       “I think they probably pulled all the levers that they can. I know there's a theoretical possibility of another budget before the election, but I think we should put that to one side for now.

       “What they need to do now is concentrate on the communication strategy and hope the improving economy helps them with falling inflation, falling interest rates, and pointing out that clear blue water between the Tory plan and Labour’s vagueness.”

       Jeremy Hunt today insisted his Budget will make a difference to the scale of the challenges the UK is facing with creaking public services and struggling councils, saying it is part of a "long-term plan".

       Labour leader Sir Keir Starmer and Rachel Reeves on the roof of St Paul's Cathedral today (Image: PA)

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       Asked on BBC Radio 4's Today programme whether the fiscal announcement has "come even close" to addressing such issues, the Chancellor said: "I believe it has. If you want quick fixes, then I'm not your person.

       "If you want a long-term plan to deliver better public services to get more investment into the economy, then I have delivered packages that do that."

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       However, speaking in the Commons today, Shadow Chancellor Ms Reeves accused him of delivering an "omnishambles" Budget, saying of the Government: "They're giving with one hand and taking twice as much with the other."

       She told MPs: "The stark reality of yesterday's Budget is clear: Taxes rising, living standards falling, growth stalling and yet again making promises they can't deliver.

       "The Tories have failed on the economy, they are out of ideas and they are out of time."

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