Jeremy Hunt has started delivering his AutumnStatement - follow the latest here.
Mr Hunt has increased the windfall tax on oil and gas giants from 25% to 35% and imposed a 45% levy on electricity generators to raise an estimated £14 billion next year.Jeremy Hunt said his decisions lead to a “substantial tax increase” but said he was not raising headline rates of taxation, adding tax as a percentage of GDP will increase by 1% over the next five years.
Jeremy Hunt has announced two new fiscal rules, telling the Commons: “The first is that underlying debt must fall as a percentage of GDP by the fifth year of a rolling five-year period.The Chancellor went on: “The plan I’m announcing today meets both rules. Today’s statement delivers a consolidation of £55 billion and means inflation and interest rates end up significantly lower.
He went on: “They confirm that our actions today help inflation to fall sharply from the middle of next year. They also judge that the UK, like other countries, is now in recession. Overall this year, the economy is still forecast to grow by 4.2%. He told the Commons: “But we need fiscal and monetary policy to work together – and that means the Government and the Bank working in lockstep.
Jeremy Hunt told the Commons: “The Office for Budget Responsibility confirms global factors are the primary cause of current inflation. Most countries are still dealing with the fallout from a once-in-a-century pandemic. He added: “Three priorities then today: stability, growth and public services. I start with stability. High inflation is the enemy of stability. It means higher mortgage rates, more expensive food and fuel bills, businesses failing and unemployment rising. It erodes savings, causes industrial unrest, and cuts funding for public services. It hurts the poorest the most and eats away at the trust upon which a strong society is built.
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