FX.co ★ British Premier woos citizens with pledges of lower taxes

British Prime Minister Rishi Sunak said that a slowdown in inflationary pressure signals that the time is ripe to adopt measures aimed at easing a tax burden. So, common Britons should sigh with relief following the pledge of their Premier.

Rishi Sunak declared that consumer inflation in the UK has fallen twice whereas economic growth has clicked into gear. This state of affairs means that personal income has increased. Therefore, the authorities should enter the next stage in fiscal policy and implement tax cuts, the Prime Minister unveiled his plans.

Citing Rishi Sunak, the tax policy in the UK is complicated with some snags which cannot be tackled in a flash. The policymaker assured citizens that the tax system would be subject to a major overhaul. So, the British government should follow fiscal rules with due diligence. The Premier stated that the authorities would lower taxes in due course.

In late September of 2023, the UK Institute for Fiscal Studies (IFS) posted a report reading that the share of taxes in the national revenue is expected to rise from the current 33% to 37% in 2024. Besides, analysts anticipate that fiscal policy will follow the new course thereafter.

The annual inflation rate in the UK slipped to 4.7% in October from 6.7% a month ago. Previously, Chancellor of Exchequer Jeremy Hunt acknowledged steady progress in the struggle against high inflation. Nevertheless, to secure the result, the monetary authorities should make more efforts to bring it down to the target of 2%.

Interestingly, the Finance Minister does not guarantee to ease the tax burden for citizens. The high-ranking official said that the tax issue would be brought up ahead of the next general elections scheduled for January 2025.

Importantly, the fact that inflation was pushed down to rates below 5% means that Rishi Sunak has fulfilled one of his five pledges announced earlier. At the beginning of 2023 when inflation skyrocketed to an appalling 10.5%, the Prime Minister promised to slash inflation twice until the year's end. Among his other pledges were to develop the domestic economy, to decrease the sovereign debt, to streamline healthcare, and to stem illegal migration.