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UK government to focus on curbing inflation, not boosting spending – King’s Speech
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LONDON (Reuters) -The British government will take responsible decisions on spending and borrowing in order to help bring down the level of inflation, King Charles said on Tuesday, suggesting those in the governing party hoping for tax cuts soon could be disappointed.
LONDON (Reuters) -The British government will take responsible decisions on spending and borrowing in order to help bring down the level of inflation, King Charles said on Tuesday, suggesting those in the governing party hoping for tax cuts soon could be disappointed.
Setting out government’s priorities for a new parliamentary session in the King’s Speech, Charles said ministers “will address inflation and the drivers of low growth over demands for greater spending or borrowing.”
“My ministers will support the Bank of England to return inflation to target by taking responsible decisions on spending and borrowing,” he said.
“These decisions will help household finances, reduce public sector debt and safeguard the financial security of the country.”
Finance minister Jeremy Hunt has so far resisted pressure from Conservative lawmakers to cut taxes this year. Hunt said last month that while he would love to lower taxes in the run-up to a national election expected in 2024, any tax cut at the moment would be inflationary.
(Reporting by Kylie MacLellan; editing by David Milliken)
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power. It is often measured by the Consumer Price Index (CPI) or the Producer Price Index (PPI).
Monetary policy refers to the actions taken by a country's central bank to control the money supply and interest rates to achieve macroeconomic goals such as controlling inflation, consumption, growth, and liquidity.
Tax cuts are reductions in the amount of tax that individuals or businesses are required to pay. They can stimulate economic growth by increasing disposable income and encouraging spending.
Responsible borrowing refers to the practice of taking on debt in a way that is manageable and sustainable, ensuring that the borrower can meet repayment obligations without compromising financial stability.
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