Jeremy Hunt has unveiled a £22 billion ($27 billion) a year fiscal stimulus after an easing of the headwinds battering the public finances.
(Bloomberg) — Jeremy Hunt has unveiled a £22 billion ($27 billion) a year fiscal stimulus after an easing of the headwinds battering the public finances.
The Chancellor of the Exchequer loosened fiscal policy over each of the next five years at the budget on Wednesday, easing the major belt-tightening in the later years he was forced to announce last year.
The giveaway averages £21.5 billion in the three fiscal years starting April, falling to £10.4 billion in 2027-28. For 2023-24, the budget outlined extra spending of £8.5 billion and tax giveaways totaling £13.3 billion.
Extending free childcare support, new business investment incentives and extra military spending were among the most expensive measures unveiled by Hunt.
The measures represent a moderate loosening after the big package of spending cuts and tax rises announced at last year’s Autumn Statement as the UK battled to restore its fiscal credibility. Hunt was forced into tightening after markets were rocked by the huge package of unfunded tax cuts unveiled by his predecessor Kwasi Kwarteng.
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