Sunak Eyes Pre-Election Tax Cuts If UK Inflation Dips Below 3%

UK Prime Minister Rishi Sunak plans to offer pre-election tax cuts in next year’s budget if inflation falls below 3% this year, people familiar with his thinking said.

Signaling his optimism at a pre-budget Cabinet meeting on Wednesday, Sunak told ministers: “As Conservatives we all want to reduce the size of the state and cut taxes,” one of the people said. They all requested anonymity disclosing private discussions.

Projections this week from the Office for Budget Responsibility see inflation dipping to 2.9% by the end of 2023. So along as wider economic circumstances allow, that would make tax cuts possible ...