Hunt calls on older people to rejoin work
MOVE TO TACKLE UK’S WEAK PRODUCTIVITY LEVELS AND BOOST ECONOMIC GROWTH
British finance minister Jeremy Hunt urged older people to return to the workforce yesterday, saying the country needed them and he was looking at ways to make “work worth your while”.
Hunt addressed problems in the labour market in a speech on Friday that sought to set out his plans to tackle the country’s weak productivity levels and boost economic growth.
“We will never harness the full potential of our country unless we unlock it for each and every one of our citizens. Nor will we fix our productivity puzzle unless everyone who can participate does,” he said.
“So to those who retired early after the pandemic or haven’t found the right role after furlough, I say Britain needs you and we will look at the conditions necessary to make work worth your while”.
The British economy is expected to fall into a recession this year, held back by double digit inflation and a tight labour market that has been marked by an exodus of older workers during the Covid-19 pandemic.
Hunt said it was time for a fundamental programme of reforms to also encourage those with long-term conditions or mental illness to overcome barriers and re-enter the workforce.
No tax cuts
Hunt, meanwhile, dismissed calls for tax cuts and pushed back against green energy subsidies, warning that “sound money must come first” as he argued that Brexit will drive UK economic growth. Hunt said: “At the moment, we don’t have the headroom for major cuts. Businesses want that, who wouldn’t? But what businesses want even more is stability.”
Hunt made it clear that fiscal constraints will make it hard to find space for business tax cuts to boost investment in the upcoming budget on March 15. That would be his priority if the Treasury finds any headroom, Hunt said.
With no money available for giveaways, the chancellor also pushed back against US and European plans to subsidise green industry, which threaten to divert investment from the UK.
Chancellor of the Exchequer Jeremy Hunt dismissed calls for tax cuts and pushed back against green energy subsidies, warning that “sound money must come first” as he argued that Brexit will drive UK economic growth.
In an interview with Bloomberg TV, Hunt said: “At the moment, we don’t have the headroom for major cuts. Businesses want that, who wouldn’t? But what businesses want even more is stability.”
Hunt was speaking at Bloom berg’ s European headquarters in London, where he made it clear that fiscal constraints will make it hard to find space for business tax cuts to boost investment in the upcoming budget on March 15. That would be his priority if the Treasury finds any headroom, Hunt said. With no money available for giveaways, the chancellor also pushed back against US and European plans to subsidise green industry, which threaten to divert investment from the UK.
A ‘dangerous’ risk
Business Secretary Grant Shapps has said there is a “dangerous” risk of the world sliding towards protectionism, and Hunt repeated the warning, saying “we do have concerns.” “I don’t think subsidies are necessarily the best way,” he said. “We should benefit from free and open trade between countries that share that [net zero] ambition.”
The Biden administration has earmarked around $400 billion for subsidies under its Inflation Reduction Act, while the European Union is looking at a response totalling several hundred billion euros that will involve relaxing state aid rules.