UK Chancellor of Exchequer, Rishi Sunak, on Monday disclosed that the Prime Minister Boris Johnson-led government would keep all plans to cut tax until after the next general election for tax cuts as a strategic measure to reposition the nation’s economy back on a “sustainable footing” .
Sunak who gave this hint in his keynote address delivered at the Conservative conference in Manchester, stressed that getting the economy on an even keel after the £400bn cost of the COVID-19 pandemic must take priority over lowering taxes.
He stressed: “Our recovery comes with a cost. Our national debt is almost 100 per cent of GDP.
“So we need to fix our public finances. Because strong public finances don’t happen by accident. They are a deliberate choice. They are a legacy for future generations and a safeguard against future threats”, the Chancellor added.
Sunak, who spoke only weeks after imposing a 1.25 percent rise in national insurance contributions to pay for the NHS and social care, said that “whilst I know tax rises are unpopular, some will even say un-Conservative, I’ll tell you what is un-Conservative: Unfunded pledges, reckless borrowing and soaring debt.
“Anyone who tells you that you can borrow more today and tomorrow will simply sort itself out just doesn’t care about the future. Yes, I want tax cuts. But in order to do that, our public finances must be put back on a sustainable footing”, he maintained.
The chancellor’s comments came amid reports that he will set out plans in his budget later this month to stop borrowing to fund government’s spending within three years and to get underlying debt falling by 2024-25.
Expatiating further on the government’s fiscal measures, the Chancellor also announced £23m funding to create 2,000 artificial intelligence (AI) scholarships for disadvantaged students and £11m to double the number of AI fellowships under the government’s Turing scheme.
According to him, as the latest general-purpose technology, artificial intelligence has the potential to completely transform whole economies and societies.
Sunak said the Prime Minister Boris Johnson-led government wanted the UK to be a scientific superpower but also a high-skilled, high-tech economy and that the new fund on AI “will allow more young people from disadvantaged backgrounds to learn new skills and train up for the jobs of tomorrow in the new and exciting industries of the future such as AI.”
This is even as he confirmed that the government intended to provide a £500m fund to stimulate employment after the end of the COVID-19 furlough, with additional support for younger people and over-50s.
