Jeremy Hunt, the minister of Economy that dismantled the controversial tax plan of the former prime minister Liz Trusswill continue to command the finances of the United Kingdom in the Government of Rishi Sunakwhose most pressing challenge will be to restore stability and confidence in the markets.
Before the collapse of the pound sterling and the rising cost of sovereign debt triggered by Truss’s decisions, the now resigned head of government accepted that one of her biggest rivals in the Conservative Party take the reins of Economy.
Hunt, 55, has been a staunch advocate of low taxation and even ran for the primary “Tories” last summer with a program proposing aggressive corporate tax cuts.
Faced with the financial storm that Truss unleashed, however, he entered the Government with the commitment to adopt a pragmatic point of view and reverse a tax plan that had forced the government to intervene. Bank of England to avoid the bankruptcy of various pension funds.
Under his orders, the reduction from 20% to 19% of the basic income tax band was cancelled, the plan to freeze the electricity bill was cut, which will now last six months, instead of two years, and eliminated likewise a reduction of 1.25% in taxes on dividends.
The next day 31, Jeremy Hunt has scheduled an appearance at the House of Commons expected by the financial markets, which may mark the economic course of the United Kingdom in the medium term.
Hunt, who must confirm that he will maintain that date after the change of government, must explain his plans to reduce public debt in relation to British GDP in the next years.
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Having backtracked on cuts that threatened to send debt soaring further, the minister is expected to spell out new measures to boost growth and announce spending cuts.
Along with their budgets, the economic forecasts of the Office for Budget Responsibility (OBR) will be published, an independent body that usually analyzes the possible medium-term consequences of the decisions of the Executive.
Truss decided to avoid the publication of the OBR report that usually accompanies major economic decisions, one of the factors that sparked mistrust in his government.
Political career in Foreign Affairs and Health
Hunt became a familiar figure to the British public as Minister for Health under the Government of david cameronfrom 2012, and later went on to occupy the foreign portfolioin 2018, during the mandate of Theresa Mayuntil 2019.
Previously he had been one of the central figures in the organization of the London 2012 Olympics from the culture Ministry.
His experience in the health field earned him later appointment as chairman of the House of Commons Health and Social Affairs Committee, a position he held until he took command of the Finance Ministry.
Hunt was first elected as an MP for the English constituency of South West Surrey in 2005 and has a degree in Philosophy, Politics and Economics from the University of Oxford.
He is married to the Chinese Lucia Guowhom she met in 2008 while she was working at the British University of Warwick in an apartment to attract Chinese students to the UK, and has a son and two daughters with her.
Hunt’s permanence at the head of the United Kingdom’s finances was the first announcement that Sunak made official this Tuesday when he began to appoint his cabinet, after having been commissioned to form a Government by the King Charles III.
After the turmoil caused by the tax cut for Truss, who resigned last week, Sunak has stressed that his main objective will be to restore “economic stability”.
Hunt briefly met with the Prime Minister in issue 10 of Down Streethis official residence, before the announcement of his continuity at number 11 of the same street, where the office of the Minister of Economy is located, was made public.
The conservative politician is expected to maintain his plans to appear next Monday in the House of Commons to outline his medium-term financial roadmap.
After the storm caused by the Truss tax cut, the markets expect the British Executive to detail its plans to boost growth and reduce the weight of public debt in relation to GDP.
In his first speech to the nation as prime minister, Sunak warned that they expect “difficult decisions” to be made to redirect the economic situation.
Hunt’s budget will be published the same week that the Bank of England’s monetary policy committee meets to assess a likely new interest rate hike.
Following Sunak’s inauguration, the pound sterling was revalued today by 1.41% compared to the dollar US and 0.68% against the eurowhile the interests of the 30-year sovereign bond of the United Kingdom remained almost unchanged, with a decrease of 0.06%.
(With information from EFE)
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