JEREMY Hunt today dismissed calls to slash taxes as he insisted the best cut for Britain is a “cut in inflation”.
In a major speech to London bankers, the Chancellor laid out his long-term vision for the economy, including a four pillar plan to boost growth.
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Mr Hunt vowed to turn the UK into the “next Silicon Valley”.
And he rejected doomsayers who think Britain is in decline.
The Chancellor pledged to follow four steps – “the four Es” – to making Britain’s post-Brexit economy boom.
They are: enterprise, education, employment and everywhere.
On enterprise, Mr Hunt said Britain must be home to the most “dynamic and productive companies” in order to prosper.
He added that the Treasury will and must lower taxes when inflation is under control so entrepreneurs and investors will be incentivised to call Britain home.
On education, the Chancellor admitted that the 50% of school leavers who don’t go to university aren’t doing as well as those who do – and this must change.
Around 9 million Brits have low basic English and maths skills.
And over 100,000 people leave school every year without reaching a decent standard in both subjects.
Mr Hunt vowed to ensure “opportunity is as open to those who don’t go to university as to those who do.”
On employment, the Chancellor described how millions of economically inactive Brits are dragging productivity down.
He described people choosing not work as “an enormous and shocking waste of talent”.
And he promised to introduce a major package of reforms to encourage people with long term physical and mental health conditions back into the office.
On “everywhere”, the Chancellor said that opportunity cannot be restricted to London and the South East.
He hit out an over-concentration of wealth around London, arguing it’s led to uneven and low growth.
“It is socially divisive if young people feel the only way to make a decent living is to head South,” Mr Hunt said.
“But it’s also economically damaging.”
He added that if the UK’s second cities were the “productive powerhouses we see in other major countries”, GDP would be nearly 5% higher, making the UK second only to the US and Germany for GDP per head.
Mr Hunt detailed how post-Brexit freedoms will be used to unlock £100bn of private investment in the economy.
The Chancellor said: “Our plan for the years that follow is long term prosperity based on British genius and British hard work.
“And world-beating enterprises to make Britain the world’s next Silicon Valley.”
He added: “Declinism about Britain was wrong in the past – and it is wrong today.
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“Some of the gloom is based on statistics that do not reflect the whole picture.
“If we look further ahead, the case for declinism becomes weaker still. The UK is poised to play a leading role in Europe and across the world in the growth sectors which will define this century.”
Mr Hunt called on businesses across the globe to invest in British tech entrepreneurs, life science innovators and energy companies.
He wants the UK to be a future go-to hub for start-ups and innovation, which would boost employment, productivity and pour more money into the economy.
But Mr Hunt faces major challenges ahead, with inflation still sitting at a staggering 10.7 per cent.
And with the price of energy remaining sky high, hard-up households are struggling to stay warm and feed themselves.
Because of the cost of living crisis, the Chancellor isn’t planning to slash taxes at the upcoming budget.
The tax burden in Britain is the highest it’s been since WWII.
And Tory MPs are getting increasingly frustrated it.
Rishi Sunak insists he’s still a Conservative at heart.
But this month he told the public the nation’s finances have to get back on track before taxes can come down.
Earlier this week ministers were warned that Britain’s medium-term economic outlook is even worse than expected.
In a private submission to the Treasury, the Office for Budget Responsibility (OBR) said growth will be slower than anticipated last year.
And the watchdog warned of a big black hole in the public purse, which could mean more cuts to public services are needed.
Last November the OBR predicted the economy would shrivel by 1.4% in 2023, before picking up by 2.6% in 2024.
But in bleak news for hard-up Brits, the growth forecast was recently reduced by 0.2 and 0.5 per.
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This is because of weaknesses in the economy, including a shortage of people going to work.
A Treasury source said: “There seems to be a view out there that Hunt suddenly has all this money to play with for tax cuts. But that is not the view internally.”
