London Daily

Focus on the big picture.
Saturday, Jul 12, 2025

'Stop declinist talk', UK's Hunt pledges to boost growth

'Stop declinist talk', UK's Hunt pledges to boost growth

Finance minister Jeremy Hunt pushed back against talk of a decline in Britain on Friday, promising that Brexit would catalyse a new age of growth for an economy that has increasingly lagged behind its peers.
Hunt, who steadied financial markets after the turmoil of former prime minister Liz Truss' "mini-budget" in September, signalled that in an upcoming budget he would stick with planned tax hikes that have angered members of his governing Conservative Party.

He repeated his ambition to create a "new Silicon Valley" with a shift to new, high-value industries such as renewable power and advanced manufacturing.

"Our plan for growth is necessitated, energised and made possible by Brexit," Hunt said in a speech at Bloomberg's headquarters in London.

With six weeks to go until his March 15 budget and his party trailing far behind the opposition Labour Party before an election expected next year, Hunt said he wanted lower taxes but sound money had to come first.

It was time for a "fundamental programme of reform" for the labour market, Hunt said, as workers who dropped out of the workforce during the COVID-19 pandemic needed to return to work as another way to improve growth.

Tony Danker, head of the Confederation of British Industry, this week said Britain had been "spectacularly overlapped and overtaken" on green investment but Danker on Friday welcomed Hunt's emphasis on growth.

"We hope the budget in less than two months will show strong actions to move us forward," he said.

Hunt, asked about major U.S. subsidies to encourage green investments in the United States and similar measures in the European Union, said he was concerned about moves that might hinder free trade but not about Britain's clean energy future.

Rachel Reeves, the Labour Party's finance spokeswoman, said there had been 13 years of economic failure from the Conservative Party. "The Tories have no plan for now, and no plan for the future," she said in a statement.

TALKING BRITAIN DOWN

Hunt said declinist talk did not reflect the fact that Britain's economy had grown by more than those of France and Germany since 2010.

More recent comparisons are less favourable: official data show Britain is the only Group of Seven economy that failed to recover its pre-pandemic size by the third quarter of 2022.

Most economists say Brexit has - so far - contributed to Britain's recent weak business investment, trade and economic growth performance.

Hunt confirmed that reforms to the European Union's Solvency II rules would be implemented in the coming months, allowing insurers to invest more in the economy.

He said that Britain needed to lower taxes but that this could not happen right away.

"With volatile markets and high inflation, sound money must come first, but our ambition should be to have nothing less than the most competitive tax regime of any major country," Hunt said.

Tackling high inflation was a top priority, he said.

"The best tax cut right now is a cut in inflation," Hunt said.
Newsletter

Related Articles

0:00
0:00
Close
Reparations argument crushed
Rainmaker CEO Says Cloud Seeding Paused Before Deadly Texas Floods
A 92-year-old woman, who felt she doesn't belong in a nursing home, escaped the death-camp by climbing a gate nearly 8 ft tall
French Journalist Acquitted in Controversial Case Involving Brigitte Macron
Elon Musk’s xAI Targets $200 Billion Valuation in New Fundraising Round
Kraft Heinz Considers Splitting Off Grocery Division Amid Strategic Review
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
EU Proposes New Tax on Large Companies to Boost Budget
Trump Imposes 35% Tariffs on Canadian Imports Amid Trade Tensions
Junior Doctors in the UK Prepare for Five-Day Strike Over Pay Disputes
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Kurdistan Workers Party Takes Symbolic Step Towards Peace in Northern Iraq
Bitcoin Reaches New Milestone of $116,000
Biden’s Doctor Pleads the Fifth to Avoid Self-Incrimination on President’s Medical Fitness
Grok Chatbot Faces International Backlash for Antisemitic Content
Severe Heatwave Claims 2,300 Lives Across Europe
NVIDIA Achieves Historic Milestone as First Company Valued at $4 Trillion
Declining Beer Consumption Signals Cultural Shift in Germany
Linda Yaccarino Steps Down as CEO of X After Two Years
US Imposes New Tariffs on Brazilian Exports Amid Political Tensions
Azerbaijan and Armenia are on the brink of a historic peace deal.
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Weinstein Victim’s Lawyer Says MeToo Movement Still Strong
U.S. Enacts Sweeping Tax and Spending Legislation Amid Trade Policy Shifts
Football Mourns as Diogo Jota and Brother André Silva Laid to Rest in Portugal
Labour Expected to Withdraw Support for Special Needs Funding Model
Leaked Audio Reveals Tory Aide Defending DEI Record
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
London Stock Exchange Faces Historic Low in Initial Public Offerings
A new online platform has emerged in the United Kingdom, specifically targeting Muslim men seeking virgin brides
Trump Celebrates Independence Day with B-2 Flyover and Signs Controversial Legislation
Boris Johnson Urges Conservatives to Ignore Farage
SNP Ordered to Update Single-Sex Space Guidance Within Days
Starmer Set to Reject Calls for Wealth Taxes
Stolen Century-Old Rolls-Royce Recovered After Hotel Theft
Macron Presses Starmer to Recognise Palestinian State
Labour Delayed Palestine Action Ban Over Riot Concerns
Swinney’s Tax Comments ‘Offensive to Scots’, Say Tories
High Street Retailers to Enforce Bans on Serial Shoplifters
Music Banned by Henry VIII to Be Performed After 500 Years
Steve Coogan Says Working Class Is Being ‘Ethnically Cleansed’
Home Office Admits Uncertainty Over Visa Overstayer Numbers
JD Vance Questions Mandelson Over Reform Party’s Rising Popularity
Macron to Receive Windsor Carriage Ride in Royal Gesture
Labour Accused of ‘Hammering’ Scots During First Year in Power
BBC Head of Music Stood Down Amid Bob Vylan Controversy
Corbyn Eyes Hard-Left Challenge to Starmer’s Leadership
London Tube Trains Suspended After Major Fire Erupts Nearby
×