*** Chancellor Hunt promises a “shallower downturn, lower energy bills, higher long term growth” as a result of the plan…
“The Office for Budget Responsibility confirms global factors are the primary cause of current inflation. Most countries are still dealing with the fallout from a once-in-a-century pandemic.” Says Chancellor
Hunt: “Bank of England, which has done an outstanding job since its independence, now has my wholehearted support in its mission to defeat inflation and I today confirm we will not change its remit.”
Hunt: “the OBR says today that the lower interest rates generated by the government’s actions are already benefitting our economy and public finances. But credibility cannot be taken for granted”
OBR judges economy is in recession… inflation rate forecast to be 7.4% next year…
GDP falls in 2023 by 1.4%,
rising by 1.3%, 2.6%, and 2.7% in following years… : Hunt
Unemployment rising from 3.6% to 4.9% in 2024
GDP falls in 2023 by 1.4%,
rising by 1.3%, 2.6%, and 2.7% in following years… : Hunt
Unemployment rising from 3.6% to 4.9% in 2024
Borrowing £177bn or 7.1% of GDP this year (up from £99bn in last forecast)
Next year: £140bn or 5.5%
Halves to 2.4% of GDP or £69bn by 27-28
Debt/GDP falls from 97.6% to 97.3% between 2025 to 2028
This meets both new fiscal rules…
Next year: £140bn or 5.5%
Halves to 2.4% of GDP or £69bn by 27-28
Debt/GDP falls from 97.6% to 97.3% between 2025 to 2028
This meets both new fiscal rules…
NEW:
45p rate kicks in at £125k.. meaning those earning over £150k will pay £1200 more in tax…
Quite the 8 week turnaround from abolishing the 45p rate entirely!
45p rate kicks in at £125k.. meaning those earning over £150k will pay £1200 more in tax…
Quite the 8 week turnaround from abolishing the 45p rate entirely!
The Tesla tax:
From April 2025 VED will now apply to electric vehicles
From April 2025 VED will now apply to electric vehicles
Thumping great windfall tax:
£14bn raised extra hitting energy generators too with 45% levy from Jan 1st until 2028
£14bn raised extra hitting energy generators too with 45% levy from Jan 1st until 2028
Defence spending no longer promised to rise to 3%, depends on update to Integrated Review. Aid spending remains at 0.5%.
Surprise immediate increase in education spending - extra £2.3bn per year - helping make up for inflationary pressures, though not entirely…
£4.7bn extra for social care… NHS gets an extra £3.3bn too…
Barnett consequential
an extra £1.5bn for the Scottish Governemnt; £1.2 bn for the Welsh Government, and £650m for the Northern Ireland Executive.
an extra £1.5bn for the Scottish Governemnt; £1.2 bn for the Welsh Government, and £650m for the Northern Ireland Executive.
“if we are going to sustain our public services and avoid a doom loop of ever higher taxes and ever lower dynamism, we need economic growth” says Jeremy Hunt
Hunt seems to be announcing most of what might have been in the Labour manifesto in advance…
From 2025 (ie after election and spending review) a doubling of energy efficiency spending up £6bn…
*** Capital spending increases stay for next two years. BUT then a cash freeze in capital spend at £114bn after the spending review period/ election
Turn UK into the next Silicon Valley is the plan, says Hunt - indeed the medium term Growth forecast is really quite punchy at 2.7%…
Hunt says will use Brexit freedoms to change EU regulations in 5 areas (is this a downgrading from the bonfire of all EU laws under Truss/ Rees Mogg?) also remove import tariffs from 100 lines - car seat parts and bike frames… investment zones refocused on high growth clusters…
Energy Price Guarantee continues for all… but that means £3000 typical bills from April…
£900 to households on means tested benefits
£300 for pensioner households
£150 for those on disability benefits…
£900 to households on means tested benefits
£300 for pensioner households
£150 for those on disability benefits…
Cap in social rents of 7%, saving average tenant £200
National Living Wage up to £10.42, up 9.7% £1600 annual pay rise for full time worker…
Hunt sticks with Sunak promise as Chancellor - benefits and tax credits up by 10.1%, in line with September inflation costing £11bn
Fulfill pensions triple lock… state pension up by £870, up by 10.1%
🚨 NEW
highest tax burden for nearly 8 decades, since Second World War - ie in the historical record since 1948 - from the OBR
highest tax burden for nearly 8 decades, since Second World War - ie in the historical record since 1948 - from the OBR
NEW:
A Budget of two halves.
Actually its a giveaway (excl energy) next year to support the economy, with the fiscal consolidation really starting in earnest around the time of the election.
A Budget of two halves.
Actually its a giveaway (excl energy) next year to support the economy, with the fiscal consolidation really starting in earnest around the time of the election.
NEW
Gilt remit cut by £24bn - so Government is immediatelt asking the markets to borrow less money… yields down a little, but a VERY different response to mini budget.
Gilt remit cut by £24bn - so Government is immediatelt asking the markets to borrow less money… yields down a little, but a VERY different response to mini budget.
NEW
OBR calculate another 3.2 million people joining the tax system as a result of the threshold freeze…
2.6m more higher rate taxpayers… close to a quarter of taxpayers paying higher rate… (& presumably eg losing CB)
Freeze is raising 26bn a year versus raising with inflation
OBR calculate another 3.2 million people joining the tax system as a result of the threshold freeze…
2.6m more higher rate taxpayers… close to a quarter of taxpayers paying higher rate… (& presumably eg losing CB)
Freeze is raising 26bn a year versus raising with inflation
🚨 NEW PAt McFadden MP confirms on #PoliticsLive my story that Labour will accept the OBR assessment and the 5 year timeframe to reduce debt/GDP, ie on current plans accept that if they win the election there is a £54bn 2% GDP fiscal consolidation to enact
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