Jeremy Hunt will unveil more than £50bn in tax increases and spending cuts to bolster the country’s finances in a tighter autumn statement as the budget watchdog delivers a grim series of economic projections.
The Chancellor is expected to freeze a slew of tax thresholds, drag hundreds of thousands of additional workers into the top tier of the income tax and squeeze departmental budgets. However, Mr Hunt will provide extra money to the crisis-hit NHS and confirm that benefits and state pensions will rise in line with inflation.
Mr Hunt is expected to say in Parliament: “The British people are tough, inventive and resourceful. We have taken on bigger challenges before.
“We are not immune to these global headwinds, but with this plan for stability, growth and public service we can face the storm.”
The chancellor will tighten his belt against a grim set of forecasts from the Office for Budget Responsibility.
City forecasters have predicted the OBR will warn that government borrowing will be £100bn higher than expected earlier this year and in 2023/24 as the government pays energy aid and higher debt.
The fiscal watchdog is also likely to warn that Britain is sliding into recession as households are squeezed by the highest rate of inflation in 40 years and utility bills are soaring.
The chancellor is expected to begin speaking at 11:30 am. We will bring all tax increases and spending cuts from Parliament as soon as they are announced…