UK Government unveils Autumn Statement
Finance minister Jeremy Hunt delivered his Autumn Statement to parliament on Wednesday, laying out tax and spending plans that he hopes will boost a sluggish economy.
Hunt addressed inflation, government borrowing and debt, outlined measures for economic growth and infrastructure planning, rises in welfare payments and plans to end low pay.
On taxes, he claimed that the OBR forecast shows that “borrowing will be lower than forecast in the Spring; debt as a proportion of GDP will be lower than forecast in the Spring; inflation will continue to fall; our fiscal headroom has doubled”.
Notably, Hunt announced tax cuts for workers by cutting the amount of National Insurance contributions, saving employees hundreds of pounds a year. Hunt also made business investment incentives permanent in an attempt to boost a spluttering economy.
However, despite the new hefty tax cuts, the UK’s tax burden is still set to be the heaviest since the Second World War and is expected to rise over the next five years reaching a high of 38% of GDP, according to the OBR.
Right-wing outlets delighted in the announcement of cuts, praising the return of an economically robust budget from the Conservatives. Left-wing outlets highlighted the weak growth outlook for Britain’s economy as a result of 13 years of Tory budgets, emphasising that the decision to cut taxes is more likely a political one to boost Conservative popularity ahead of an expected 2024 election as the Conservatives currently lag behind Labour in opinion polls.
The Autumn Statement speech can be read in full here.
Unless otherwise stated, headlines are front pages on 20 November 2023.
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