Mr Hunt was speaking to The Sunday Times ahead of Thursday’s Autumn Statement, where some tough measures are likely to be taken to plug a £55bn black hole. He said: “I think it’s fair to say this will be the first budget without a rabbit for many, many years. “Sorry to disappoint, but, no, it won’t be rabbit weather, I’m afraid.” Last week, data showed the economy shrank by 0.2% between July and September – if GDP also shrank in the current quarter, the country will officially be in recession. The Bank of England said the recession could last two years – the longest since reliable records began in the 1920s. Mr Hunt said he would release forecasts from the Office for Budget Responsibility on Thursday, which were “likely to show a similar picture”. “… the question is not really whether we are in a recession, but what we can do to make it shorter and shallower,” he added. According to the Times report, Mr Hunt is expected to announce: • Freezing the thresholds and personal allowances for income tax, national insurance, VAT, inheritance tax and the pension for another two years beyond what Mr Sunak set when he was chancellor • Reducing the capital gains tax exemption • Reduction of the threshold for the additional income tax rate of 45 p.m. from £150,000 to £125,000• Emergency tax on oil and energy companies is set to rise by 10 points to 35%, be extended by three years and apply to electricity producers for the first time It is also expected to confirm that average household energy bills will rise significantly, with The Sunday Times saying internal government estimates suggest this increase could be as much as £600. Liz Truss’s government guaranteed that a typical household’s energy bills would be capped at £2,500, but from April, that guarantee is expected to be limited to pensioners and those on benefits. The scheme is expected to cost £60bn over six months, but Hunt has pledged just £20bn for its extension from April. Mr Hunt said: “We have to be honest with people; we cannot subsidize people’s energy bills indefinitely. “What I can promise people is that I will be honest about the scale of the problem and fair in how I deal with these problems, and yes, that means the people with the broadest shoulders will bear the brunt. “Britain is ultimately a fair country, a compassionate country, and we want to make sure people can pay their fuel bills this winter… and that will be very difficult for people on low incomes.”
