Fix public finance before cutting taxes

British finance minister Rishi Sunak said that tax cuts could only come once public finances had been put on a sustainable footing. The government had set out plans to raise taxes on workers, employers and some investors. This is for fixing a health and social care funding crisis. Speaking in a hall at the governing Conservative Party’s annual conference in the northern English city of Manchester, Sunak said that he believed in fiscal responsibility.

He stated that there can be no prosperous future unless it is built on the foundation of strong public finances. He has to be blunt that their recovery comes with a cost. The national debt is almost 100% of GDP. Hence, they need to fix their public finances. He wants tax cuts, but in order to do that their public finances must be put back on a sustainable footing.

Sunak will give a half-yearly update on the public finances and economic outlook. He is also expected to outline longer-term public spending plans. This is after his massive coronavirus pandemic stimulus package.