Hunt’s tax cuts based on ‘implausible’ public spending squeeze – think tanks
The IndependentGet the free Morning Headlines email for news from our reporters across the world Sign up to our free Morning Headlines email Sign up to our free Morning Headlines email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Jeremy Hunt’s tax giveaway is based on “implausible” plans to cut public spending and will not prevent this from being the “biggest tax raising” parliament in recent times, economists have said in their assessments of the autumn statement. Mr Hunt could have used the proceeds to ease the ongoing “fiscal drag” or compensate public services for higher costs, Mr Johnson said, but opted for the tax reductions instead. Mr Bell said: “Worse, the giveaways announced today are funded by handing whoever wins the next election implausibly large spending cuts. Tax cuts to boost business investment are welcome, but undermined by plans to cut public investment by over a third – it’s hard to think of a more anti-growth policy.” Mr Johnson said: “These tax cuts have been ‘paid for’, in effect, by a bigger squeeze on the real-terms value of public service budgets and an even bigger squeeze on public investment, which is frozen in cash terms.