The early trailers in January 2024 for what is probably Chancellor Jeremy Hunt’s last ‘fiscal event’ featured Prime Minister Rishi Sunak promising “more to come” on tax cuts.
At the time, Mr Sunak’s bullish viewpoint puzzled some commentators because the Treasury had yet to receive even an initial assessment of the UK’s financial health from the Office for Budget Responsibility (OBR).
As Budget Day neared, a mix of OBR computation and the government’s expectation management dampened down the speculation around tax cuts and suggestions emerged about the possibility of counterbalancing tax increases. It began to sound as if the government’s election strategy would rely more on fiscal responsibility and less on the reductions in National Insurance contributions or Income Tax demanded by many of its backbenchers.
DownloadPDF here