The Chancellor believes that lower inflation will make it possible to reduce the tax burden without dangerous economic consequences
It is not yet known whether the Chancellor will make a further fiscal intervention before the election, which will partly depend on the timing of polling day further fiscal intervention before the election
Speaking after the Office for National Statistics confirmed that February’s Consumer Prices Index rate was 3.5 per cent, down from 4 per cent the month before, the Chancellor said: “Inflation has not just fallen decisively but is forecast to hit the 2 per cent target within months. Asked whether he could confirm further tax cuts before the election, Mr Hunt told broadcasters: “What I’m really saying is that as inflation gets closer to its target, that opens the door for the“It’s far too early to know whether we’ll have another fiscal event before the election, but what I would say is that what you can see is the difficult decisions the Government has taken over the last year are paying off and we can see that – difficult though they were – they were the right thing to do...
A Treasury source said: “If we have money, we are going to do what we have done in the past two fiscal events. With inflation falling on a faster trajectory, it opens up our options.”
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