British governing party announces tax cuts that it hopes can lift ailing election fortunes

By PAN PYLAS
Associated Press

LONDON (AP) — British Treasury chief Jeremy Hunt is seeking to bolster spirits within his Conservative Party with a series of tax cuts that he hopes can turn the political dial ahead of a general election this year. Though the British economy has hit one definition of recession and public finances will remain stretched over coming years, Hunt used his annual budget statement Wednesday to cut taxes. He announced a reduction in national insurance — a tax that 27 million employees pay — by a further 2 percentage points. He also froze taxes on alcohol and gas at the pump and lifted the amount of money individuals can earn before they have to pay back a child benefit they receive from the state.