The Government aims to restore stability and credibility in the economy as inflation soars to a 41-year high of 11.1 percent. The package includes £30billion in spending cuts and £24billion in tax rises over the next five years.
The measures aim to reduce Government debt and repair the reputational damage caused by former Chancellor Kwasi Kwarteng’s mini-budget on September 23, which caused the pound to plummet against the dollar.
Mr Hunt acknowledged that many Britons will be worried about the future, and said his priorities for the Autumn Statement are “stability, growth and public services”. He explained, “high inflation is the enemy” as it leads to higher prices and that inflation hurts the poorest the most. He added: “We also protect the vulnerable, because to be British is to be compassionate, and this is a compassionate Conservative Government.”
He attributed global factors as the “primary cause” of current inflation stating that most countries in the world are dealing with high rates as a result of the “fallout from a once-in-a-century pandemic”.
The Chancellor announced that The Office for Budget Responsibility (OBR) has judged that the UK is now in recession. He said: “[The OBR] 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.”