UK’s Hunt tries to defuse tax row with cuts to government staff

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MANCHESTER, Oct 2 — British finance minister Jeremy Hunt set out plans today to freeze and then cut the number of government workers to save up to £1 billion (RM5.6 billion), an...

Singapore: Migrant workers at Tanah Merah dorm have to wait hours for shuttle bus; operator says it's only a peak-period problemBritish Chancellor of the Exchequer Jeremy Hunt speaks on stage at Britain's Conservative Party's annual conference in Manchester October 2, 2023.

He described the move as proof of Sunak’s desire to show his government was willing and able to take “tough decisions” to make people better off — a bid to convince voters to back the party at an election expected next year. His spokesperson said the aim was to cut the number of civil servants, or officials working on government policy, from approximately 460,000 to 400,000 by 2025, and that Hunt would seek to improve productivity across the public sector.

Sunak’s predecessor Liz Truss, prime minister for a chaotic six weeks last year, made her presence felt at conference, telling a packed venue Britain was far from a “free-market paradise” and needed to cut taxes to boost growth. But the civil service cuts and an increase in the minimum wage to at least £11 an hour from 10.42 pounds were unlikely to stem the rows.

Not helping Sunak’s cause among champions of traditional low-tax Conservative values was a report on Friday by the Institute for Fiscal Studies think tank that showed tax revenue was likely to represent 37 per cent of annual economic output at the time of the next election — Britain’s highest tax rate since at least the 1950s.

 

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