UK Finance Minister Jeremy Hunt says he wants to lower taxes before the next election, but admits that doing so now would be inflationary.

 In a speech to the Conservative Party conference on October 3, 2023, Hunt said that he "would love" to cut taxes, but that this would have to wait until inflation has been brought under control.

 "I know that many of you are calling for tax cuts now," he said. "But I want to be honest with you: cutting taxes now would be inflationary. It would put more money into the economy at a time when there is already too much money chasing too few goods and services. This would only make inflation worse, and it would hurt the poorest in our society the most."

 Hunt said that the government is committed to bringing inflation down, and that it is working with the Bank of England to achieve this. He said that the government will also be taking steps to help people with the cost of living crisis, such as increasing the National Living Wage and providing support to energy bills.

 "I know that things are tough at the moment," he said. "But I ensure you that we are doing everything we can to help you. We will get through this together."

Economists react

 Economists have reacted cautiously to Hunt's speech. Some have welcomed his commitment to fiscal responsibility, while others have warned that his plans to cut taxes in the future could lead to higher government debt.

"Hunt is right to be cautious about cutting taxes now," said Paul Johnson, director of the Institute for Fiscal Studies. "Inflation is high, and the government needs to be mindful of the impact that any tax cuts would have on the public finances."

 However, Johnson warned that Hunt's plans to cut taxes in the future could lead to higher government debt. "If Hunt wants to cut taxes in the future, he will need to identify areas where the government can spend less money," he said.

 What next?

 It is unclear when Hunt will be able to deliver on his promise to cut taxes. The government is currently under pressure to reduce the cost of living crisis, and it is also trying to balance the need to support households with the need to bring inflation under control.

 It is possible that Hunt will announce some tax cuts in the autumn statement, which is due to take place in November. However, it is also possible that he will wait until after the next election, which is expected to take place in 2024.