Prime Minister Jeremy Hunt will release his fall statement at 11:30 am this morning. He is expected to introduce various tax increases and spending cuts designed to weather the economic “storm.”
Mr. Hunt will finish speaking at the public hall at about 12:30 pm, at which time his financial plan (including the Office of Budget Responsibility forecast) will be posted on the government website.
At 2pm, OBR will give a presentation on how it works. This is the first time an official financial watchdog has published its findings since the mini-budget created by Liz Truss and Kwasi Kwarten.
Mr Kwarteng’s refusal to allow the Office of Budget Responsibility to assess his planned tax cuts contributed to the market impact following the mini-budget.
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Hunt’s new fiscal package, now largely explained, is expected to come in the form of £30 billion in spending cuts and £24 billion in tax increases over the next five years.
Cumulatively, the budget is expected to save the UK government an estimated £54 billion in total.
Hunt is expected to increase benefits, pensions and tax credits with inflation. However, support for energy bills will be reduced. Average annual bills could rise from his current cap of £2,500 to £3,000 in the spring. A windfall tax on energy generators is also expected.
The government hopes the plan will keep inflation under control and keep interest rates from rising.
Prices rose 11.1% last year, up one percentage point from September, according to the Office for National Statistics (ONS).
The government also argues that steps are needed to close the so-called fiscal black hole, the gap between what the government raises and what it spends.
Hunt said today, “Some difficult decisions must be made to restore stability, control inflation and keep the nation in balance.
“So this is our plan to build a stronger economy, protect public services and ensure that the most vulnerable are cared for.”
Prime Minister Rishi Sunak said of the restoration of stability:
Labor said the country was “stranded by 12 years of Tory economic failure and wasted opportunity” and that working people were “paying the price”.
https://www.politics.co.uk/news/2022/11/17/hunt-promises-to-weather-economic-storm-with-tax-rises-spending-cuts/ Hunt promises tax hikes, spending cuts to weather economic ‘storm’