The Chancellor projects optimism for the UK economy, urging focus on Brexit opportunities and fiscal discipline.
Chancellor Jeremy Hunt has dismissed pessimism surrounding the UK’s economic prospects, asserting that Britain is poised to leverage its Brexit freedoms to become a global leader in emerging growth sectors. In a keynote address at Bloomberg’s European headquarters, Hunt declared, “Declinism about Britain was wrong in the past, and it is wrong today.”
While the Chancellor’s speech struck an optimistic tone, he resisted calls from some Conservative MPs for immediate tax cuts to stimulate economic growth. Instead, he emphasised a disciplined fiscal strategy aimed at controlling inflation, describing it as the key to easing cost-of-living pressures.
Hunt pointed to the UK’s post-2010 growth rate, which has outpaced France, Japan, and Italy. He highlighted Britain’s potential to lead in critical industries like clean energy and advanced technology, attributing these opportunities to the flexibility afforded by Brexit. “Our growth plan is rooted in British innovation, hard work, and the freedoms Brexit provides,” he stated.
The Chancellor also announced reforms to the EU-derived “Solvency II” directive, which regulates reserve requirements for British insurers. The Treasury estimates this change could unlock £100 billion in private investment over the next decade, boosting UK infrastructure and clean energy projects.
Following a Cabinet retreat at Chequers, Hunt and Prime Minister Rishi Sunak reinforced their commitment to inflation control, which they credited to the government’s tough economic decisions after Liz Truss’s short-lived tax-cutting mini-budget.
“Our disciplined approach is essential for reducing inflation and building long-term prosperity,” Hunt said. He envisions a future where economic growth not only supports public services but also positions Britain as a global player in the low-carbon economy and a defender of democracy abroad.
With his vision, Hunt aims to inspire confidence in the UK’s economic resilience and potential, urging the country to focus on opportunities rather than dwelling on challenges.
