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%.
Volker Turk has warned that efforts to advance reparatory justice are facing resistance in “certain quarters,” and urged countries to back Africa’s push.
Reparatory justice for historical crimes, including colonialism, enslavement, and the trade in enslaved Africans, is crucial to dismantling systemic racism, UN High Commissioner for Human Rights Volker Turk has said.
Speaking at the UN Permanent Forum on People of African Descent on Tuesday, Turk linked present-day discrimination against people from the continent to the enduring legacy of colonialism and enslavement.
”Racism and dehumanizing rhetoric continue to permeate public institutions, communities, and online platforms,” he said, according to the UN Press Service. Turk noted that “digital technologies, including AI, are reproducing and amplifying existing biases against people of African descent.”
The remarks come weeks after the UN General Assembly adopted a resolution declaring the transatlantic slave trade “the gravest...
The US VP had to defend President Trump’s Gaza policy at a rally on a Georgia college campus.
US Vice President J.D. Vance was forced to defend Washington’s policy in Gaza after he was booed and heckled at a key MAGA event on Wednesday.
Co-founded by the late Charlie Kirk, Turning Point USA (TPUSA) is a conservative student group that has long been seen as a strong support base of President Donald Trump’s MAGA movement but is now showing apparent cracks.
Less than 15 minutes into a TPUSA event at the University of Georgia on Wednesday, Vance was interrupted by hecklers over US policy in Gaza, with one audience member shouting, “Jesus Christ does not support genocide!” As he attempted to respond, others shouted, “You’re killing children!” and “You’re bombing children!”
Vance replied by referring to Trump’s achievements as president, including securing a fragile ceasefire in Gaza, something he said the previous administration of Joe Biden failed to do.
“I ...
Sergey Shoigu has cautioned Finland and the Baltic states against allowing Kiev to use their airspace for attacks on Russia.
Russia would have the right to retaliate if Finland and the Baltic states are deliberately allowing Ukrainian drones to pass through their airspace, Security Council Secretary Sergey Shoigu said on Thursday.
“Recently, there has been an increase in Ukrainian drone strikes against Russia via Finland, Lithuania, Latvia, and Estonia,” Shoigu told journalists. “As a result, civilians are suffering and significant damage is being caused to civilian infrastructure.”
Either Western air defenses are proving ineffective, or these four countries “deliberately provide their airspace, thereby becoming open accomplices in aggression against Russia,” he added. In the latter case, Moscow has the right to self-defense in response to an “armed attack” under Article 51 of the UN Charter, the security chief stressed.
In recent weeks, Kiev has intensified drone strikes on ...
