Britain is already in a recession according to the finance minister, as he announces a string of tax hikes
Britain is struggling economically.
UK finance minister Jeremy Hunt has announced a string of new tax hikes as the government pushes to tighten public spending.
Speaking to parliament, Hunt said it was necessary to restore faith in policymaking and public finances. This is particularly relevant after the short-lived premiership of Liz Truss.
“Credibility cannot be taken for granted and yesterday’s inflation figures show we must continue a relentless fight to bring it down. [This includes] a rock-solid commitment to rebuild our public finances,” Hunt said.
Headline moves include a freeze on income tax allowances, meaning more people will pay the basic rate.
Hunt also lowered the threshold for paying the top rate, and cut tax-free allowances for earnings from dividends.
He increased a windfall tax on oil and gas firms, and extended it to power generators.
“I have no objection to windfall taxes. [So long as] they are genuinely about windfall profits caused by unexpected increases in energy prices.”
Hunt is attempting to close Britain’s £55 billion budget hole.
Hunt said the country was already in recession, and government departments would need to find ways to save money.
But he denied that the plans amounted to a return of austerity, saying the the National Health Service would get extra funding.
Hunt says he hopes to protect other public spending “as much as possible”.
The opposition Labour Party said the economy was in a “mess”, as result of the government’s mistakes.
Markets gave a muted reaction to the plans, with sterling and government bonds edging lower.
