Sunak warned personal tax cuts will not do much to boost British economy

Personal tax cuts would have a 'low impact' despite coming at a 'medium fiscal cost', the UK Treasury said

British prime minister Rishi Sunak has pledged personal tax cuts ahead of an election expected this year.

UK Treasury officials told incoming prime minister Rishi Sunak tax cuts would have a “low impact” on boosting growth, a view that appears at odds with chancellor of the exchequer Jeremy Hunt’s promise of a 1980s-style “boom” sparked by giveaways planned for the annual budget in March.

According to Treasury documents seen by Bloomberg that were presented to Mr Sunak’s senior team in late 2022, increasing high-skilled immigration and changing planning rules to build more homes would both have a “high impact” on the economy with a “low” fiscal cost.