As the UK slides into recession, Treasury Secretary Hunt plans to consolidate the budget with tax hikes to calm financial markets.
The British have known for a long time that deep black clouds have gathered on the economic horizon. Still, the latest forecast released by the Office for Budget Responsibility (OBR) on Thursday came as a shock to many. For the first time, tangible figures show how deep the crisis is actually threatening to become.
According to the OBR, the country is already in recession. It will probably last around a year, and economic output will shrink by 1.4 percent in 2023. British living standards will fall by seven percent in the next two years – a record. Unemployment, meanwhile, will rise from 1.2 million today to 1.7 million in 2024. Inflation, as had already become known the day before, has risen to over eleven percent – the highest level since more than 40 years ago.
Tax on random winnings
This is the grim backdrop before Treasury Secretary Jeremy Hunt appeared in the House of Commons on Thursday to present his economic plan for the coming years. The so-called “autumn statement” had been eagerly awaited for weeks and is considered the first major baptism of fire for the government of Rishi Sunak.
