No one was expecting a big tax cut this year. Rishi Sunak’s government has been clear that 2023 is for the ‘difficult decisions’. If the Tories are to offer up a tax cut, it is much more likely to be announced in the Budget next March. Still, that didn’t make Jeremy Hunt’s comments on LBC last night any cheerier.
Speaking to Andrew Marr, the Chancellor said that tax cuts were ‘virtually impossible’ due to soaring interest payable on government debt.
Hunt has a point: one of the many painful consequences of soaring inflation and higher interest rates has been the impact on public finances. In July, interest payments reached their highest level for that month on record, totalling £7.7 billion, up £1.5 billion from July last year. August this year was slightly better: interest payments were £5.6
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