Displaying items by tag: economic policy

In his Autumn Statement on 22 November, Chancellor Jeremy Hunt announced a significant cut in National Insurance from January, from 12% to 10%. However, due to previous tax changes, many workers might not see substantial benefits. He also raised the state pension by 8.5% and universal credit by 6.7%. Hunt claimed the Government had stabilised the economy, allowing for tax cuts aimed at boosting growth ahead of the next year's general election. Labour criticised the NI cut as insufficient compared to previous tax increases by the Conservative government. Hunt also made a tax break for business investments in new equipment permanent, touted as the 'biggest business tax cut in modern history.' Despite these cuts, the overall tax burden is set to reach a 70-year high. The Office for Budget Responsibility (OBR) revised growth forecasts downwards and projected a delay in the return to pre-pandemic living standards until 2027/28, citing prolonged inflation and higher interest rates. The NI reduction, seen as a significant move, led to speculation about an early general election.