By Hunt: ‘Today we deliver a plan to tackle the cost-of-living crisis and rebuild our economy’
Jeremy Hunt says “our priorities are stability, growth, and public services”.
“We are not alone in facing these problems, Chancellor Jeremy Hunt says, adding his intentions for a ‘stronger health and education system’.
Mr Hunt outlined three major focuses “stability, growth and public services”, adding that capital investment will not be cut.
The BBC reported a household using a typical amount of gas and electricity will pay £3,000 annually, up from £2,500, as the Energy Price Guarantee rises. The scheme will run for 12 months from April.
The chancellor has confirmed that the National Living Wage will be increased from £9.50 an hour for over-23s to £10.42 from April next year. Additional payments of £900 will be paid to those on ‘means-tested’ benefits. Universal Credit, will also rise in line with September’s inflation figure of 10.1% from next April, including pensions rising at the same rate.
Touching on the controversial budget by former Chancellor Kwasi Kwarteng, Hunt said “He was correct to identify growth as a priority, but unfunded tax cuts are as risky as unfunded spending, which is why we reversed the planned measures,” he says. “The pound has strengthened and the OBR is saying the government’s actions are already benefiting our economy,”
As continued rhetoric, Hunt blames inflation on ‘global factors’, citing the continued war in Ukraine and fallout from the pandemic.
“But they all have to be paid for,” he adds.
The chancellor says the threshold for when the highest earners start paying the top rate of tax will also be brought down from £150,000 to £125,000. He also acknowledged a UK recession.
Hunt has also confirmed that the energy industry will be hit with an expanded windfall tax of 35% up from 25%, and Income tax personal allowance threshold will be frozen until 2028, meaning as wages rise, so will tax, and more people will be included in the higher tax bracket.
The Chancellor has announced electric vehicles will no longer be exempt from Vehicle Excise Duty from April 2025, which he says will make the system ‘fairer’.
Jeremy Hunt has confirmed that there will be spending squeezes on government departments. He says that they will have to take “tough decisions to deal with inflationary pressures in the next two years”, though says Health is not featured in the cuts.
He will also ask over 600,000 more people on universal credit people to meet with work coach “so they can get the support they need to increase their work hours or earnings.”
The one big take away is the confirmation from the Chancellor that a recession is imminent, and as reported by the BBC, the ‘tax burden’ is the highest in 70 years.
The Chancellor retains a commitment to COP26 “But with the existential vulnerability we face, now would be the wrong time to step back from our international climate responsibilities,” he says.
He confirms that the government remains fully committed to the Glasgow climate pact agreed at COP26.
Hunt says: “Because we want school standards to continue to rise, we’re going to do more than protect the school budget – we’ll increase it.”, adding that Sir Michael Barber will be meeting with him and the education secretary to discuss how to improve prospects for school leavers.
On the NHS, Hunt says “to join all public services in tackling waste and inefficiency”.
“We want Scandinavian quality alongside Singaporean efficiency – both better outcomes for citizens and better value for taxpayers”, adding on the subject of the Sizewell C plant, will go ahead.
Hunt added “Over the long term, there is only one way to stop ourselves being at the mercy of international gas prices: energy independence combined with energy efficiency,” he says.
Hunt confirmed that rail projects will go ahead as planned: the Northern Powerhouse rail, the HS2 and the East West Rail.
Hunt adds that the UK now “needs to be better at turning world class innovation into world class companies… I want to combine our technology and science brilliance with our formidable financial services to turn Britain into Britain into the next Silicon Valley.”
(Image: BBC)
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