Sign up to the Inside Politics email for your free daily update on the biggest stories in UK politics
Get our free Inside Politics email
Jeremy Hunt said rising inflation was “eating into pay cheques, household budgets and savings” as energy bills and food prices hit a 41-year high. The Office for National Statistics (ONS) revealed that inflation jumped to a higher-than-expected 11.1% in October – the highest rate since October 1981. The chancellor blamed the impact of the pandemic and the war in Ukraine for the rise in prices, adding: “This insidious tax is eating into cheques, household budgets and savings, while undermining any chance of long-term economic growth. “It is our duty to help the Bank of England in its mission to bring inflation back to target by acting responsibly with the country’s finances. This requires some tough but necessary tax and spending decisions to help balance the books.” It comes as Mr Hunt is likely to lift the cap on bankers’ bonuses when he delivers his Autumn Budget tomorrow, part of a raft of measures designed to restore the UK’s financial credibility. The Financial Times first reported that the chancellor would make lifting the cap one of the few measures to survive Kwasi Kwarteng’s disastrous mini-budget, amid speculation about the “difficult decisions” likely to be made by Mr .Hunt and the Prime Minister. try to find up to £60 billion from a combination of spending increases and cuts.
Basic points
Show latest update 1668585706
Warning of ‘deadly combination of recession and inflation’
The British Chambers of Commerce (BCC) has warned of a “deadly combination of recession and runaway inflation” unless Jeremy Hunt acts. The BCC’s head of research, David Bharier, said: “While the Bank of England seeks to control inflation through further rate rises, this is a blunt tool that fails to address the key drivers of inflation for most companies: rising energy costs , disrupting the global supply chain. , and increasing personnel costs due to labor shortages. “Ahead of tomorrow’s autumn statement, businesses should see a clear plan from the Chancellor to boost investment and business growth, as well as targeted measures to tackle the specific causes of inflation. “The UK economy, on the other hand, is facing a deadly combination of recession and inflation.” Katy Clifton 16 November 2022 08:01 1668585272
Rising inflation ‘the government’s biggest economic failure’
Lib Dem Treasury spokeswoman Sarah Olney said the government’s “biggest economic failure was their disastrous attempts to reduce inflation”. He said: “Families are now struggling to make ends meet because of this government’s inaction and incompetence over spiraling prices. “Having caused such a mess, the last Tory chancellor now expects the public to clean up their mess with grossly unfair tax increases. “Our crumbling hospitals and classrooms are on the brink of savage cuts because the Conservative party wrecked the economy to fund tax cuts for the richest corporations. The country will never forgive them. “This week Jeremy Hunt should be targeting oil companies and banks making big profits to plug the black hole in Britain’s finances, rather than causing more pain and misery for struggling households.” Katy Clifton 16 November 2022 07:54 1668584767
No talks on UK-US trade deal in Bali
Rishi Sunak and Joe Biden did not discuss a UK-US trade deal at their bilateral G20 meeting, Downing Street said. The prime minister’s press secretary told reporters in Bali: “There was no specific discussion about a trade deal, but our relationship is not just about trade and he is our closest trading partner even without a trade deal. “But you know, it goes beyond that, whether it’s security, whether it’s addressing the economic challenges that we face.” Asked if that meant a trade deal was not a priority for the prime minister, she said: “Obviously our close relationship, and as one of our biggest trading partners, is a very important part of our relationship.” He also declined to comment on the timing of a potential deal. Katy Clifton 16 November 2022 07:46 1668584730
“It’s important to stay calm,” Sunak says
Rishi Sunak said it was important to keep calm and establish the facts after a missile hit Poland near the border with Ukraine. Speaking at the launch of a session on digital transformation at the G20 summit in Bali, the prime minister said it was “crucial” to protect the international order. British Prime Minister Rishi Sunak speaks with US President Joe Biden during a bilateral meeting at the G20 summit on November 16, 2022 in Nusa Dua, Indonesia (Getty Images,) “It is important to remain calm and focus on establishing the facts,” he said. “I spoke to President Duda this morning to express my support and pledge our support. “As I said yesterday, it is critical that we protect the international order and the fundamental principles of the UN Charter.” Namita Singh16 November 2022 07:45 1668584130
Downing Street refuses to comment on details of the missile that hit Poland
Downing Street declined to comment on reports that the missile that hit Poland was fired by Ukrainian forces at an incoming Russian missile, saying the facts needed to be established first. The prime minister’s official spokesman said: “Certainly the incident has been looked at and discussed at the G7, I think there is agreement from all sides that further investigation is needed before any conclusions are drawn. US President Joe Biden and British Prime Minister Rishi Sunak attend a meeting of leaders at the G20 summit following a missile that fell in Poland near the Ukrainian border on November 16, 2022 in Nusa Dua, Indonesia (Getty Images,) “It is important to look at the facts and determine the facts first before jumping to conclusions. “None of this changes what we know has happened, which is a significant missile attack on Ukraine by Russia targeting civilians and civilian infrastructure. “This is a barbaric attack, especially at a time when world leaders are meeting and shows Putin’s continued contempt for the international order.” Namita Singh16 November 2022 07:35 1668583830
72% of single mothers worry about running out of money in retirement, report finds
Four in 10 (40 per cent) single mothers say they are not a pensioner, compared with three in 10 (29 per cent) women in general, according to a report. Almost three-quarters (72 per cent) of single mothers are worried about running out of money in their pension, as are 61 per cent of women overall and 52 per cent of men, Scottish Widows said. Single-parent households with dependent children have assets of £29,000 on average, covering all wealth, including pensions, it said. This compares to over £275,000 for the average couple with dependent children. Namita Singh16 November 2022 07:30 1668583224
Sunak’s meeting with Xi Jinping has been called off, Downing Street says
Rishi Sunak’s meeting with Chinese President Xi Jinping at the G20 summit has been called off, Downing Street said. Bilateral talks were scheduled for the afternoon but were canceled due to a schedule change following the morning’s emergency meeting of G7 and NATO leaders over the passage of missiles into Poland, according to the prime minister’s official spokesman. British Prime Minister Rishi Sunak and Canadian Prime Minister Justin Trudeau hold a press conference at the G20 summit on November 16, 2022 in Nusa Dua, Indonesia (Getty Images,) Namita Singh16 November 2022 07:20 1668583132
Hunt wants tough decisions to be made as inflation soars
Chancellor Jeremy Hunt blamed the impact of the pandemic and the war in Ukraine for the rise in prices as he warned that “tough” decisions on tax and spending would be needed in Thursday’s autumn statement. “The aftershock of Covid and Putin’s invasion of Ukraine is driving up inflation in the UK and around the world,” he said. “This insidious tax eats into paychecks, household budgets and savings, while stymieing any chance of long-term economic growth. “It is our duty to help the Bank of England in its mission to bring inflation back to target by acting responsibly with the country’s finances. This requires some tough but necessary decisions on taxes and spending to help balance the books. “We cannot have long-term, sustainable growth with high inflation. Tomorrow I will table a plan to bring down debt, achieve stability and reduce inflation, while protecting the most vulnerable.” Katy Clifton 16 November 2022 07:18 1668583093
UK inflation soars to new 40-year high
Inflation hit a new 40-year high of 11.1% amid soaring energy bills and food prices. The rate of Consumer Price Index (CPI) inflation peaked in October from 10.1% in September, the latest figures from the Office for National Statistics (ONS) revealed. Liam James reports this terrifying story below: Katy Clifton 16 November 2022 07:18 1668582930
Health Secretary promises NHS changes to weather ‘future storms’
The NHS must be put on a better footing to weather future storms, the health secretary is expected to say. Steve Barclay will tell the NHS provider conference in Liverpool that the health service is set to experience a tough winter. He will say: “We are dealing with the twin threats of Covid and flu, external pressures around energy and cost of living and we are entering the colder months without the breathing space we might have normally had due to the pressures of Covid in the summer.” Namita Singh16 November 2022 07:15
