Displaying items by tag: spring statement

Rishi Sunak delivered his mini-Budget against a backdrop of rising fuel, energy and food costs. He cut fuel duty by 5p but resisted calls to scrap April's National Insurance rise of 1.25p in the pound; instead the start threshold will rise from £9,600 to £12,570. He warned the UK's post-pandemic recovery has been blown off course by the war in Ukraine, but he promised an income tax cut in 2024 when the economy would be in better shape. The Office for Budget Responsibility painted a bleak picture of the immediate prospects, saying that living standards are set to take the biggest hit since records began in the 1950s. It said inflation was set to peak at 8.7% at the end of this year and this - combined with rising taxes - will ‘weigh heavily on living standards in the coming twelve months’. The UK's tax burden will be the highest level since the 1940s.

The former Archbishop of Canterbury, Dr Rowan Williams, and 200+ church leaders sent an open letter to Boris Johnson and Rishi Sunak. They said a stronger commitment to renewable energy would help address the climate emergency and help people to weather the cost of living crisis. Letter signatories include fifty Anglican and Catholic bishops, including the lead environment bishops. Their call for financial and fiscal support for renewable energy and energy efficiency - solar and wind energy - was met in the spring statement, but retrofitting of homes and other buildings across the UK to reduce heating bills and decrease carbon emissions was not. They also proposed a windfall tax on fossil fuel companies to address the cost of living and no support for new oil and gas developments if we are to limit global heating to 1.5°C.

The Trussell Trust has said that Philip Hammond has missed a chance to do the right thing by giving people on the lowest income financial support and certainty before Brexit. Our benefits system should ensure proper support is in place when help is most needed. But more people are struggling to make ends meet and face hunger. The trust said a record demand in foodbank use has resulted from benefits not covering the cost of essentials. ‘By failing to end the benefits freeze and the five-week wait for Universal Credit, thousands more people will become trapped in poverty and may be forced to a foodbank as a result.’ Financial experts said that Britain needs urgent spending reviews to address issues around benefits squeezes, education funding, and social care. The Chancellor promised to free up more money to help end austerity if there’s a smooth Brexit, and that a disorderly Brexit would deal a ‘significant’ blow to economic activity in the short term. See