Jeremy Hunt explained why he was announcing tax hikes and spending cuts
British economy in recession – Chancellor
Britain is now officially in a recession, Chancellor of the Exchequer Jeremy Hunt said on Thursday as he delivered his Autumn Statement to Parliament, having unveiled a new fiscal plan to weather the economic “storm.”
A recession is a downturn in economic activity when a country’s GDP declines for two consecutive quarters. As a result, the national budget commonly receives less tax revenue as businesses make less money, pay drops, and unemployment increases.
The chancellor announced a raft of “difficult decisions” including around £30 billion ($35 billion) in spending cuts and £25 billion ($29 billion) in tax hikes. A six-year freeze on income tax thresholds and a lowering of the top rate of income tax to £125,000 ($147,000) are also among the measures.
According to Hunt, the energy industry will be hit with an expanded windfall tax of 35% up from 25% as part of his new budget plan.
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The fiscal measures also include a 10% increase in the state pension, benefits and tax credits, as well as a rise in the National Living Wage from £9.50 ($11.21) an hour for those aged 23 and above.
“The Office for Budget Responsibility (OBR) judge that the UK, like other countries, is now in recession,” Hunt told MPs. “It says higher energy prices explain the majority of the downward revision in cumulative growth since March.”
“The OBR confirm that because of our plans, the recession is shallower, and inflation is reduced. Unemployment is also lower with about 70,000 jobs protected as a result of our decisions today,” he explained.
According to the OBR, the UK economy is still forecast to grow by 4.2%, but would shrink by 1.4% next year, before rising by 1.3%, 2.6%, and 2.7% in the following three years. The inflation rate is projected to be 9.1% this year and 7.4% in 2023. Unemployment is expected to rise from the current 3.6% to 4.9% in 2024 before falling to 4.1%.
The prices of some life-saving medicines have soared to levels that are unaffordable for ordinary people in Venezuela as the United States has ramped up military presence in the Caribbean off Venezuela's coast, alongside escalating sanctions, blockades and military threats against the oil-rich South American nation since late August.
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At a northeastern suburb in the capital city Caracas, locals can still purchase most of the commonly used medicines at a major supermarket, where some antibiotics have been sold out, and some first-aid medicines and supplies have become too costly for ordinary residents.
"I'm here mainly to buy antibiotics. I have problems with my lungs. But I can't get all I want, such as vancomycin," said a resident named Alfonso.
"Recent tensions have affected the supplies and prices of drugs. The prices of cancer drugs, insulin drugs and albumin are very high, and most patients here cannot afford them," said Giovanna Gonzalez a ...
Russian President Vladimir Putin says Moscow is prepared to use military force to achieve the goals of its special military operation if Ukraine continues to delay peace talks.
During an inspection of a Russian armed forces command post on Saturday, Putin stressed that Moscow will not allow Kiev’s obstruction to prevent progress.
“If the Kiev authorities do not want to resolve the matter peacefully, we will accomplish all the tasks before us in the course of the special military operation by military means,” he said.
The Russian leader noted that the Ukrainian authorities are not moving toward a peaceful resolution, adding, “We see that even today, unfortunately, the leaders of the Kiev regime are in no hurry to resolve this conflict peacefully. I spoke about this a year ago in a speech at the Ministry of Foreign Affairs.”
Putin also received reports from Chief of General Staff Valery Gerasimov and commanders of Russia’s “Centre” and “East” military groups.
Meanwhile, ...
