By Tony O’Reilly-
The independent Office for Budget Responsibility (OBR) warned the disposable incomes of UK households would fall by 7.1% over the next two years in what is expected to be the biggest drop on record, following his budget.
An all-round increase in taxes and spending cuts is set to hit household pockets hard. Under Mr. Hunt’s new budgeting plan, a higher level of income tax will now being paid on earnings over £125,140 instead of £150,000 as pensions triple lock will remain – with pensioners to see a 10.1% increase in weekly payments in line with inflation. Benefits to also rise in line with inflation – by 10.1%.
AD: Capeesh Restaurant
Mr Hunt insisted in an interview with Sky News that it was “a difficult time for everyone” but tax hikes and spending cuts are needed to get the economy “on an even keel”.
“Over the next two years it is going to be challenging,” he said.
“But I think people want a government that is taking difficult decisions, has a plan that will bring down inflation, stop those big rises in the cost of energy bills and the weekly shop, and at the same time is taking measures to get through this difficult period.”
Jeremy Hunt to defend autumn statement amid warning of record fall in living standards
AD: Oysterian Sea Food Restaurant And Bar
The chancellor insisted that his autumn statement is a “very Conservative package” following criticism from some Tory MPs.
“The Office for Budgetary Responsibility said yesterday that what we’re doing is actually recession shallow, it’s saving jobs,” he said.
“But what I would say to my Conservative colleagues is there is nothing Conservative about spending money that you haven’t got, there is nothing Conservative about not tackling inflation, there is nothing Conservative about ducking difficult decisions that put the economy on track.
“And we’ve done all of those things and that is why this is a very Conservative package to make sure we sort out the economy.
“None of this is easy, but it’s the right thing to do.”
Former business secretary Jacob Rees-Mogg accused the chancellor of taking the “easy option” in Thursday’s autumn statement rather than bearing down harder on public spending.
AD: Heritage And Restaurant Lounge Bar