Jeremy Hunt uses improved public finances to serve up giveaways

Chancellor Jeremy Hunt has a good chance of unveiling pre-election giveaways by the autumn, but is constrained by his own fiscal rules. He chose to give companies more generous capital allowances, provide well-off with enhanced pension tax relief, and offer free childcare to parents with one- and tw

March 17, 2023 . 1:41 AM

1 min read

Chancellor Jeremy Hunt has a good chance of unveiling pre-election giveaways by the autumn.
Office for Budget Responsibility's prediction is more optimistic than Bank of England's.
Hunt chose to give companies more generous capital allowances and provide well-off with enhanced pension tax relief.
Hunt met his own fiscal rule with just £6.5bn leeway, meaning his new capital allowances for companies are temporary.
The constraint from his own debt rule will probably disappear in the autumn, giving the chancellor significant scope for future giveaways.