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Jeremy Hunt considers tax reform to bring retired people back into the workforce to boost the economy and ease inflation.
In a key speech outlining his vision for economic policy, the prime minister promised millions of people who are unemployed or looking for work to “do the work you deserve.”
He also promised to revive Liz Truss’ scheme for investment zones, where businesses receive tax breaks for relocation, but ruled out tax breaks until inflation is under control.
Hunt made a speech at Bloomberg’s headquarters in London ahead of the budget, which will be announced on March 15. It was meant to convince businesses, MPs and the public that he was using his post-Brexit freedoms to plan the economy.
“We need to make Brexit a catalyst for bold choices that take advantage of the agility and flexibility that Brexit enables,” he said, with reforms that foster innovation to “turn Britain into the world’s next Silicon Valley.” .”
He promised to boost education to improve the skill levels of the workforce and reduce Britain’s reliance on migrant labour. But he said the fact that there are 5 million people who are unemployed and uninterested in finding work, including many who have chosen to retire early during the pandemic, has made efforts to alleviate the labor shortage difficult. I warned you that you would be hindered.
“Britain needs you,” Hunt said. “We will look at the conditions necessary to make your work worthwhile.”
New incentives could be announced in the budget, which could include tax breaks for those who choose to return to the workforce.
It is understood that the prime minister hopes that by increasing the size of the overall workforce, it will also help businesses keep costs down. It is being accelerated by , and there are relatively simple steps to address it.”
In his speech, the Prime Minister argued that the Investment Zone would create a “mini Canary Wharf” across the UK, where businesses and universities work together to create highly skilled jobs with a strong focus on research and technology.
But Hunt rejected the short-term tax cut proposal, stating: So the best tax cut at the moment is lower inflation. ”
Lawmakers and business groups warned Hunt that promises to use Brexit to boost the economy must be matched by government action.
The board’s chief economist, Kitty Usher, said the prime minister’s pledge would prove “empty” unless he explained how he planned to deliver on his promises.
Citing Hunt’s “four E’s” for boosting the economy (business, education, employment, and everywhere), she added: So to his 4 Es economic framework he adds his 5th E which stands for “Empty”. Business needs government action to counter negative moods. ”
John Redwood, a veteran Conservative MP who was a major supporter of Liz Truss, told Times Radio that instead of stabilizing the economy through balanced finances, “raise taxes and the economy will grow.” There is a risk of “the loop of fate that makes you depressed too much.” .
Prime Minister Rachel Reeves said of the Labor Party: The Tories have no plans for now and no plans for the future. ”
Tony Danker, executive director of the CBI, which represents large companies, praised the speech. technical department. ”
But Craig Beaumont of the Small Business Alliance called for policy changes, including stronger R&D support for small businesses, a more proactive approach to youth employment and subsidies for green investment.
And Shevan Havilland, secretary general of the British Chamber of Commerce, said growth would be “hindered” without action to boost exports and solve energy shortages.