Rishi Sunak Vows to Cut Taxes, but Cautions Against Doing ‘Everything at Once’

British Prime Minister Rishi Sunak has promised to cut taxes, but he has also cautioned that the government won't be doing "everything at once." Sunak made the remarks in a speech in north London on Monday, ahead of the Autumn Statement budget scheduled for this week.

Balancing Expectations

Sunak said that he intends to implement the next phase of economic growth by turning to taxation in a disciplined way. He acknowledged the pressure from sections of the governing Conservative Party to use tax cuts to revive the party's electoral fortunes, but he also warned against the risks of unfunded tax cuts.

Responsible Tax Cuts

Sunak said that he believes in cutting taxes, but he emphasized that it must be done responsibly. He said that the government must avoid doing anything that puts at risk the progress of controlling inflation, and he noted that tax cuts don't automatically pay for themselves.

Prioritizing Economic Growth

Sunak said that the government will prioritize economic growth and focus on the supply side of the economy. He said that it will take discipline and prioritization, but he expressed confidence that the government can cut taxes over time.

Avoiding Past Mistakes

Sunak also made a clear reference to his short-lived predecessor at 10 Downing Street, Liz Truss, who was forced out of office over an uncosted tax-cutting budget in September 2022. Sunak said that he was determined not to make the same economic mistake and once again cautioned against unfunded tax cuts.

Growing Speculation

Over the weekend, UK Chancellor Jeremy Hunt told reporters that everything is on the table when asked about the growing speculation around possible tax cuts. The speculation has intensified within the Tory ranks ahead of an expected general election in 2024, with many calling for tax-cutting measures to lure voters back to the governing party.

Rishi Sunak has promised to cut taxes, but he has also cautioned against unfunded measures. He has emphasized the need for responsible tax cuts that do not put at risk the progress of controlling inflation. Sunak has also said that the government will prioritize economic growth and focus on the supply side of the economy. It remains to be seen how Sunak will balance the competing demands of cutting taxes and maintaining fiscal responsibility, but his speech on Monday suggests that he is taking a cautious approach.