Jeremy Hunt to deliver UK budget on March 6 as election looms
Jeremy Hunt as he endeavors to set the stage for the impending election, mandated to take place by January 2025. Prime Minister Rishi Sunak's Conservative party currently lags significantly behind the opposition Labour Party in the polls. Despite this, the country's economic challenges and budget deficit constrain the ability of Sunak and Hunt to engage in extensive pre-election spending.
Amid calls from numerous Conservative lawmakers for tax reductions to regain voter support after 13 years of Conservative rule, Sunak and Hunt find themselves in a delicate position. The latest Ipsos poll in December indicated that Conservative support was at 24%, substantially trailing the Labour Party's 41%.
Set for March 6, Jeremy Hunt's budget statement will encompass tax and spending proposals, along with updated growth and borrowing forecasts and government debt plans for the 2024/25 financial year. The Treasury Department confirmed the date, revealing that Hunt had enlisted the Office for Budget Responsibility to prepare forecasts.
Speculation in the media has hinted at potential tax cuts in the spring budget, building upon the measures introduced by Hunt in the November budget. Reports suggest that Sunak is contemplating the elimination of inheritance tax, a move that could be unveiled in the upcoming budget.
Despite a concerning deterioration in the budgetary landscape, official data released in December revealed a glimmer of hope. Public sector net borrowing was £24.4 billion higher than the same period the previous year, offset by a reduced debt interest bill attributed to slowing inflation. This may offer some breathing room for pre-election tax cuts.
