Jeremy Hunt's tax cuts will only add 0.25% to UK GDP, says Bank of England

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Jeremy Hunt's autumn statement on tax cuts will add just 0.25% to the size of the economy in coming years, has warned the Bank of England.

In a damning assessment of the chancellor's budget shake-up, the central bank said the measures "could" boost domestic output, but any increase would only scratch the surface of area.

This comes after the economy shrank by 0.3%. cent for October alone, meaning any increase in Mr Hunt's corporate and personal tax cuts might not even cover that month's cut.

“Bank staff had provisionally estimated that these additional measures could increase the level of GDP (gross domestic product). product) by approximately 0.25% over the coming years," it said in a report.

Jeremy Hunt holding his Autumn Growth Statement

(Getty Images)

In delivering his so-called Autumn Growth Statement last month, Mr Hunt cut the rate national insurance of 2 p...