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.
UK inflation hits 41-year highREAD MORE: UK inflation hits 41-year high
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%.
US President Donald Trump confirmed on Wednesday the upcoming start of ground strikes against drug cartel targets in Latin America.
He made the remarks during Christmas greetings to the military.
Trump said the United States was "now going after the land" in its fight against drug cartel targets, noting that drug trafficking by sea was down 96 percent.
The U.S. president also extended special congratulations to the crew of the aircraft carrier USS Gerald R. Ford, currently deployed in the Caribbean.
BEIJING (Sputnik) - China has begun operating the world's first intelligent ultra-large oil tanker powered by methanol, the China Central Television (CCTV) reported on Monday.
The tanker, designed to transport crude oil, was successfully put into operation in the city of Dalian in China's northeastern coastal province of Liaoning, the report said. State-owned company Dalian Shipbuilding Industry Co Ltd independently designed and built the vessel, it added.
The tanker is approximately 333 meters (1,092 feet) long and can carry around 2.1 million barrels of crude oil, the CCTV reported. Designed to produce low emissions and having intelligent control capabilities, the tanker will serve the route to the Middle East, among others, according to the report.
The vessel is powered by a dual-fuel methanol engine, which reduces carbon dioxide emissions by 92% compared to conventional fuel, the CCTV reported. It is equipped with an intelligent ship platform, an intelligent liquid cargo ...
A car bomb has killed a senior General Staff member, officials have confirmed
Source: The Investigative Committee
A Russian general has been killed in a car bomb blast in Moscow, the Investigative Committee has reported.
Officials identified the victim as Lt. Gen. Fanil Sarvarov, head of operational training at the General Staff. According to the statement, an explosive device had been planted beneath the vehicle he was traveling in, and detonated on Monday morning in the southern part of the Russian capital.
The blast also damaged several other vehicles and seriously injured Sarvarov’s driver, media reports stated.
Russian officials said one line of investigation is an assassination carried out by Ukrainian intelligence services, noting that Kiev has previously used explosive devices in targeted killings of officials and public figures.
Last December, a bomb hidden in an e-scooter killed Lt. Gen. Igor Kirillov, commander of Russia’s Nuclear, Chemical, and Biological Defense ...
