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Jeremy Hunt to defend autumn statement amid warning of record fall in living standards | Politics News


Jeremy Hunt will continue to defend his fall statement today as experts warn of a record drop in living standards across the country.

The Prime Minister presented his economic plan to parliament on Thursdayflooded with sneaky taxes and limited government spending to £55 billion in an attempt to plug a black hole in public finances.

But the independent Office of Budget Responsibility warned UK household disposable income will fall by 7.1% over the next two years – the lowest level since records began in 1956/7, and brings earnings down to 2013 levels.

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According to Mr Hunt’s announcement, the UK tax burden will now also be at its highest level since the Second World War, and there are stark warnings of rising bills and higher unemployment as the recession hits. happen – as well as predictions that the economy will still shrink by 1.4% in 2023.

But most tough spending decisions have been postponed until after the next general election, scheduled for 2024.

Both the Resolution Foundation and the Institute for Fiscal Studies will release their own analysis of their plans this morning, but the Treasury Department’s analysis has shown that around 55% of households will be worse off as a result of the measures. it’s France.

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Meanwhile, Labor has blamed “12 weeks of turmoil for the Conservatives” and “12 years of economic failure by the Conservatives” for the bleak outlook.

Shadow Chancellor Rachel Reeves accused the government of forcing the UK economy into a “loop of doom, where low growth leads to higher taxes, lower investment and squeezed wages, along with a recession reduction of public services”.

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In his statement, Mr Hunt distanced himself from Liz Truss’ philosophy of short-lived government – the government promised billions of dollars in tax cuts and sent markets into turmoil. .

However, while the prime minister froze tax thresholds, lowered the higher income tax rate and extended the reluctant tax on energy companies (later Labor policy) amid the Other measures, he also promised to spend more for NHS, society. care and education, as well as recommitted to increasing pensions and benefits in line with inflation.

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Hunt questions fall statement

Mr Hunt also pledged to continue supporting the energy bill from April next year – despite 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 reduce the impact of the recession on households and businesses, as well as protect services. labour.

But he points to those spending decisions, adding: “As soon as the recession is behind us, then, yes, we’re going to consolidate to make sure we’re balancing our books.” myself – and I think that’s what people want.”

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’12 weeks of turmoil for the Conservatives’ – Rachel Reeves

While many in his party support “difficult decisions”, the prime minister laid out the energy crisis, the war in Ukraine and the aftermath of the pandemic – as well as Ms Truss’ tenure in office. – other Tories have warned against raising taxes while the country is in recession.

Former party leader Sir Iain Duncan Smith told Sky News: “I’m worried they’re estimating that they’re going to get a certain amount of revenue from the tax hike. [but] those tax hikes can end up hurting the economy and they won’t get the revenue afterward, which means they’ll be back looking for more.

“[There] every possibility of raising taxes doesn’t work out as you think, so this could lead to a deeper recession. We need to watch that very carefully and see where it goes.”

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And former Wales minister David Jones told the Telegraph that if high taxes continue, “the prospect of the Tories winning the next election… will become more remote”.

Opposition parties were also quick to condemn the plan, with Liberal Democrat MP Sarah Olney saying it would “cause unrelenting pain to people”, and the SNP’s Kirsty Blackman saying it “opens up doors” a new era of austerity cuts”.

MPs will debate the measures in the Commons next Monday and Tuesday.

Prime Minister Jeremy Hunt will be speaking to Sky News at around 7am this morning about his fall announcement announcement

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