What would be the consequences of Rishi Sunak cutting taxes at this time?

UK: British Prime Minister Rishi Sunak said that he is now ready to cut taxes responsibly.  He said that his target of halving inflation by the end of this year has been achieved.

The autumn budget is going to be presented in the British Parliament this week. Earlier, the country's Prime Minister Rishi Sunak said on Monday that he is now ready to cut taxes responsibly. He claimed that his target of halving inflation by the end of this year has been achieved.

However, the Indian-origin British leader tried to moderate expectations ahead of the Budget and said the government would not do 'everything at once'.

Keeping in mind the electoral future of the ruling Conservative Party, there is increasing pressure from some of its leaders on Sunak to cut taxes. Meanwhile, the UK Prime Minister said he intends to implement the next phase of economic growth by approaching taxation in a disciplined manner.

 There is speculation that British Chancellor Jeremy Hunt may announce some measures while giving a statement on the autumn budget in the House of Commons on Wednesday.

"I want to cut taxes," Sunak said at an event in north London. I believe in cutting taxes. He further said, what could be a better expression of my governance philosophy than one in which the people, not the government, make the best decisions about their money.

He further said, we should avoid doing anything that jeopardizes our progress towards controlling inflation. It doesn't matter what we want. History shows that tax cuts don't pay for themselves.

Sunak also said that the country had a huge tax burden due to the Covid pandemic and the Russia-Ukraine conflict. He said, now inflation has halved and our growth rate is also strong, which means revenues are high, so we can start the next phase and focus on tax cuts.

He said, we cannot do everything at once. it will take time. But we need to prioritize. We can do this over time and we will cut taxes.