UK Chancellor Hunt, hemmed in by debt, set to focus on growth in British budget

“British Finance Minister (Chancellor) Jeremy Hunt will announce on Wednesday how he will try to speed up the world's sixth-biggest economy after the shocks of Brexit, a heavy COVID-19 hit and double-digit inflation have left it lagging behind its peers,” reported Reuters ahead of a budget speech to the UK parliament at around 12:30 GMT.

The news also mentioned that UK’s Hunt has dismissed calls from other lawmakers in the ruling Conservative Party for big tax cuts now to boost their fortunes before an election expected in 2024.

"In the autumn we took difficult decisions to deliver stability and sound money," Hunt is due to say, according to excerpts of his budget speech. "Today, we deliver the next part of our plan: A budget for growth," he will add reported Reuters.

Key quotes

Hemmed in by his promise to lower the burden of Britain's 2.5 trillion pounds ($3.0 trillion) of debt, Hunt will seek to tackle some of the causes of Britain's long-term economic funk.

Having ruled out a major spending spree or big tax cuts, Hunt will address the acute shortage of candidates for jobs by changing childcare and welfare rules, something he says will help get hundreds of thousands of people back into work.

The Guardian newspaper said Hunt would announce a 4 billion-pound childcare expansion for one and two-year olds in England.

He is also expected to announce measures to improve skills training and give a green light to 12 investment zones.

In an attempt to soften that tax hit, Hunt has hinted at new incentives for business investment.

He is also under pressure from nurses, teachers and other public sector employees who striking for higher pay, while the armed forces say they need more money to support Ukraine in its war with Russia.

GBP/USD stays sidelined

GBP/USD seesaws around 1.2160 during early Wednesday, having reversed from a one-month high the previous day, as traders await the key UK event.

Also read: GBP/USD bulls meet resistance near 1.2200 ahead of UK budget