The British listened to Finance Chancellor Jeremy Hunt present his budget and realized they would pay highest taxes in history of the kingdom since World War II.
With years of suffering ahead, today it is being debated in the belief that the budget is the closest to that of Gordon Brown, Labor Social Democrat, according to the Conservatives.
That’s why the richest and companies with the income tax (oil company profit tax)and the extermination of the Tory-voting middle class with its wages eaten up an inflation of 11%. and new taxes.
On a mission to convince
Starting at 7am on Friday, millionaire Finance Chancellor Jeremy Hunt took to British radio and television to explain that the “next two years they will be challenging”, as disposable income is directed to the biggest fall Registered since 1945.
Minister Hunt presented his autumn statement to parliament on Thursday, plagued by underhanded taxes and restrictions on public spending worth £55bn in a bid to plug the black hole in public finances.
Speaking to Sky News, Hunt said he was “a difficult time for everyoneBut what about tax increases and spending cuts? for the “equilibrium” economy“For the next couple of years it will be a challenge,” he said.
A plan to lower inflation
“But I think people want a government that makes tough decisions, that has a plan that lowers inflationstop those huge increases in the cost of your energy bills and weekly shopping and, at the same time, take steps to get through this difficult period” Hunt declared.
The chancellor insisted his autumn statement was a “very conservative package”, following criticism from some Conservative MPs.
“The Office for Budgetary Responsibility said yesterday that what we’re doing is actually a shallow recession, it’s saving jobs,” Hunt said.
“But what I would say to my fellow Conservatives is this there’s nothing conservative about spending money you don’t have. There is nothing conservative about not addressing inflation. There is nothing conservative about shying away from tough decisions that keep the economy going,” Hunt said.
“And we did all of these things – which is why this is a very conservative package – to make sure we fix the economy.
“None of this is easy, but it’s the right thingHunt explained.
Former Conservative affairs secretary and Brexiteer Jacob Rees-Mogg has accused his party’s chancellor of take the “easy option” in Thursday’s fall statement, instead of putting more pressure on government spending. He said the country needed lower taxes to stimulate growth.
Analysis of the hoard suggests that approx 55% of homes will be worse off following the measures announced in the Chancellor’s autumn statement.
Labor blamed “12 weeks of Conservative chaos” and “12 years of Conservative economic failure” for the bleak outlook.
Three Conservative prime ministers and four chancellors is too many on such short notice.
If you’re all feeling a little mystified by the chancellor’s fall statement, you’re not alone.
In just eight weeks, the government went from wanting to implement the biggest tax cuts in 50 years to raising the country’s tax burden to its highest level since World War II.
They wanted Liz Truss and her chancellor Kwasi Kwarteng reduce taxes, announcing £45bn of unfunded tax cuts in September, only to have his replacements, Rishi Sunak and Jeremy Hunt, swing the pendulum to the other side.
Its autumn filing aims for £55bn of tax consolidation, plus £25bn of tax increases and £30bn of spending cuts.
Britain has gone from the fervor of the trickle economy, small state and low taxes of Truss to sunak pragmatism. The Indian-born economist and prime minister says he is instinctively conservative. But on Thursday he oversaw a statement to drop that he took a lot from the opposition Labor caucus.A pure Keynesian.
There was unexpected fees on energy companies (which raised £5.6bn by 2027/8),
A freeze on social security thresholds for extra money for employers (£5.8bn),
A 45p reduction in the tax rate to £125,000 (£855m).
There were changes to capital gains and dividend tax (£1.4bn) and a reversal of cuts to Kwarteng’s stamp duty (£1.6bn).
smell of work
The tax increases on corporations and the wealthy had all the hallmarks of a Labor budget. It seemed ripped from the handbook of the Labor Chancellor and then Prime Minister Gordon Brown.
In terms of spending, the Conservatives are also prioritizing extra funding for the NHS (the health service) (£6.6bn) and schools (£4.6bn) over the next two years, paid in part out of budget.
And although public services they will feel the pressure next year, as inflation has exceeded allocated spending, most of the £30bn in spending cuts will go to the next parliament, when the Conservatives may not even be in power.
“Labour’s fox has been killed,” said a senior economist, when Hunt borrowed some of Sir Keir Starmer’s tax plans, the leader of the opposition partyhe put more money into public services and spared the pain of spending cuts until after the general election.
But the political sense of Thursday’s statement cannot detract from the stark reality of what people are about to face, while the UK is approaching a recession and energy bills and inflation remain high.
UK households will experience a 7.1% drop in living standards over the next two years.
It is the largest decline in six decades and will return disposable household income to levels not seen since 2013.. A decade of growth is over.
That, along with wage increases below inflation, for public sector workers and tight budgets as inflation outstrips financing arrangements for most public services, it will hurt voters and it will no doubt test his relationship with a Conservative party, which is already over 20 points behind center.
A YouGov poll in The Times says 45% of voters blame the Conservative government by higher debt levels, despite Hunt’s best attempts to blame global factors.
very angry tories
Signs of discontent are spreading among Conservative MPs. Richard Drax has pointed out, shared by many of his colleagues, that raising taxes risks stifling growth.
Eurosceptic Bill Cash complained about the cost of HS2 (high-speed train 2). Her colleague Therese Villiers has called on the chancellor to cut taxes quickly if current forecasts for economic recovery and inflation prove too pessimistic.
This is an autumn statement from a foreign minister and a prime minister who insist on it It’s time to “ride the storm”.
Both were relieved by the announcement it did not disturb the markets. But the economic outlook is nothing but bleak for the public and the government. The next few months could be very eventful.
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.