Jeremy Hunt, UK’s Chancellor of the Exchequer, has blamed the COVID-19 pandemic and Brexit for Britain’s current political unrest and economic difficulties.
Hunt compared the UK economy to a “sprained ankle” during a speech at an event hosted by the Resolution Foundation and the Centre for Economic Performance.
However, he disagreed with the idea that it is broken, highlighting the UK’s inherent resilience and its strengths, particularly its position as a global leader in artificial intelligence.
If we are going to go into dealing with the sprained ankle, rather than a broken leg, let’s do so from a perspective of positivity because we have so much going for us,” he said
Asked whether the UK economy has a broken leg that needs fixing before we try to “run a marathon”, chancellor Jeremy Hunt says it’s more like a “sprained ankle” and the recovery should be approached with “perspective of positivity”. pic.twitter.com/9hMKGvlVwR
— Channel 4 News (@Channel4News) December 4, 2023
According to the report released by the Resolution Foundation, the UK needs to drastically change its government policies to close the gap between its living standards and those of countries like Germany and France.
Despite acknowledging the challenges that Brexit and the pandemic have contributed to “political instability and a lack of investment,” Hunt defended his recent tax cuts, arguing that they are essential for stimulating economic growth.
He dismissed the idea that Britain was lagging behind its peers and pointed out the rising gross domestic product rate since 2010.
“We’re not going to be able to shield people from all of the effects of rising inflation,” Hunt said. “But we can do some things to help, such as supporting low-income households and helping businesses with their energy costs.”
If you close your eyes you can’t even see it limping
UK economy has a ‘sprained ankle’, not a broken leg, says Jeremy Hunthttps://t.co/ivEbwq89Vc
— Emma Jacobs ? (@emmavj) December 4, 2023
Despite the challenges, Hunt was positive about the UK’s long-term prospects and noted that the country has several strengths, including a strong workforce, globally renowned universities, and a thriving financial sector.
“We have the skills, the talent, and the resources to be a world-beating economy,” Hunt said. “We just need to get the conditions right for our businesses to thrive.”
The effectiveness of Hunt’s tax cuts and the overall direction of the UK economy will remain key issues in UK politics with the general elections coming up in 2024.