The chancellor presented his economic plan to parliament on Thursday, packed with £55bn of secret taxes and government spending cuts in a bid to plug the black hole in public finances. But the independent Office for Budget Responsibility has warned that UK household disposable incomes will fall by 7.1% over the next two years – the lowest level since records began in 1956/7 and reducing incomes to 2013 levels . Politics Live: Top Tory warns jury is out on Chancellor’s plans As a result of Mr Hunt’s announcements, the UK tax burden will also now be at its highest since the Second World War and there are stark warnings of increased bills and higher unemployment as the recession takes hold – as well as predictions the economy will continue to shrink by 1.4% in 2023. But most of the tough spending decisions have been postponed until after the next general, due in 2024. Both the Resolution Foundation and the Institute for Fiscal Studies will present their own analysis of the plans later this morning, but the Treasury’s analysis already shows that around 55% of households will be worse off as a result of the measures.
More about the Fall Statement 2022
Meanwhile, Labor blames “12 weeks of Tory chaos” and “12 years of Tory economic failure” for the bleak outlook. Shadow chancellor Rachel Reeves accused the government of forcing the UK economy into a “doomsday loop where low growth leads to higher taxes, lower investment and squeezed wages, with the drain on public services”. Click to subscribe to Sky News Daily wherever you get your podcasts In his statement, Mr Hunt distanced himself from the philosophy of Liz Truss’ short-lived government – which promised billions in unfunded tax cuts and sent markets into turmoil. But while the chancellor froze tax thresholds, cut the top rate of income tax and extended the windfall tax on energy businesses (the latter, a Labor policy) among other measures, he also promised more spending on the NHS, social care and education , as well as a re-commitment to upgrade pensions and benefits in line with inflation. Use Chrome browser for more accessible video player 2:25 Hunt was asked about the fall statement Mr Hunt also pledged to continue supporting energy bills from April next year – although raising the cap to £3,000 for the average household. Speaking to reporters after the announcement, he said the government was “helping as much as we can” to ease the impact of the recession on households and businesses, as well as protect public services. But he pointed to those spending decisions, adding: “Once the recession is behind us, then, yes, we will consolidate to make sure we balance our books – and I think that’s what people would want.” Use Chrome browser for more accessible video player 1:06 “12 Weeks of Conservative Chaos” – Rachel Reeves While many in his party supported the “difficult decisions”, the chancellor took in light of the energy crisis, the war in Ukraine and the fallout from the pandemic – as well as Mrs Truss’ tenure – other Tories warned against hiking taxes while the country is in recession. Former party leader Sir Iain Duncan Smith told Sky News: “My concern is that they have estimated that they will get some revenue from their tax increases. [but] These tax increases could end up hurting the economy and they won’t have the revenue afterwards, which means they’ll be back again looking for more. “[There] there’s every chance that tax increases won’t do what you think they will, so this could lead to a deeper recession. We have to watch it very carefully and see where it goes.” Read more: Key announcements from Autumn Statement Electric car owners to pay road tax from 2025 Jeremy Hunt’s incredible plate change – analysis And former Welsh Secretary David Jones told the Telegraph that if high taxes continued, “the prospects of the Tories winning the next election … will become more remote”. Opposition parties were also quick to condemn the plan, with Lib Dem MP Sarah Olney saying it would “cause untold pain for everyone” and the SNP’s Kirsty Blackman saying it would “start a new era of damaging austerity cuts”. MPs will debate the measures in the Commons on Monday and Tuesday next week. Chancellor Jeremy Hunt will speak on Sky News at around 7am. this morning for his autumn statement
title: “Jeremy Hunt To Defend Autumn Statement Amid Warning Of Record Fall In Living Standards Political News " ShowToc: true date: “2022-11-13” author: “Joanna Kjar”
The chancellor presented his economic plan to parliament on Thursday, packed with £55bn of secret taxes and government spending cuts in a bid to plug the black hole in public finances. But the independent Office for Budget Responsibility has warned that UK household disposable incomes will fall by 7.1% over the next two years – the lowest level since records began in 1956/7 and reducing incomes to 2013 levels . Politics Live: Top Tory warns jury is out on Chancellor’s plans As a result of Mr Hunt’s announcements, the UK tax burden will also now be at its highest since the Second World War and there are stark warnings of increased bills and higher unemployment as the recession takes hold – as well as predictions the economy will continue to shrink by 1.4% in 2023. But most of the tough spending decisions have been postponed until after the next general, due in 2024. Both the Resolution Foundation and the Institute for Fiscal Studies will present their own analysis of the plans later this morning, but the Treasury’s analysis already shows that around 55% of households will be worse off as a result of the measures.
More about the Fall Statement 2022
Meanwhile, Labor blames “12 weeks of Tory chaos” and “12 years of Tory economic failure” for the bleak outlook. Shadow chancellor Rachel Reeves accused the government of forcing the UK economy into a “doomsday loop where low growth leads to higher taxes, lower investment and squeezed wages, with the drain on public services”. Click to subscribe to Sky News Daily wherever you get your podcasts In his statement, Mr Hunt distanced himself from the philosophy of Liz Truss’ short-lived government – which promised billions in unfunded tax cuts and sent markets into turmoil. But while the chancellor froze tax thresholds, cut the top rate of income tax and extended the windfall tax on energy businesses (the latter, a Labor policy) among other measures, he also promised more spending on the NHS, social care and education , as well as a re-commitment to upgrade pensions and benefits in line with inflation. Use Chrome browser for more accessible video player 2:25 Hunt was asked about the fall statement Mr Hunt also pledged to continue supporting energy bills from April next year – although raising the cap to £3,000 for the average household. Speaking to reporters after the announcement, he said the government was “helping as much as we can” to ease the impact of the recession on households and businesses, as well as protect public services. But he pointed to those spending decisions, adding: “Once the recession is behind us, then, yes, we will consolidate to make sure we balance our books – and I think that’s what people would want.” Use Chrome browser for more accessible video player 1:06 “12 Weeks of Conservative Chaos” – Rachel Reeves While many in his party supported the “difficult decisions”, the chancellor took in light of the energy crisis, the war in Ukraine and the fallout from the pandemic – as well as Mrs Truss’ tenure – other Tories warned against hiking taxes while the country is in recession. Former party leader Sir Iain Duncan Smith told Sky News: “My concern is that they have estimated that they will get some revenue from their tax increases. [but] These tax increases could end up hurting the economy and they won’t have the revenue afterwards, which means they’ll be back again looking for more. “[There] there’s every chance that tax increases won’t do what you think they will, so this could lead to a deeper recession. We have to watch it very carefully and see where it goes.” Read more: Key announcements from Autumn Statement Electric car owners to pay road tax from 2025 Jeremy Hunt’s incredible plate change – analysis And former Welsh Secretary David Jones told the Telegraph that if high taxes continued, “the prospects of the Tories winning the next election … will become more remote”. Opposition parties were also quick to condemn the plan, with Lib Dem MP Sarah Olney saying it would “cause untold pain for everyone” and the SNP’s Kirsty Blackman saying it would “start a new era of damaging austerity cuts”. MPs will debate the measures in the Commons on Monday and Tuesday next week. Chancellor Jeremy Hunt will speak on Sky News at around 7am. this morning for his autumn statement
