Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Trump: We are very close to an agreement in the Middle East.
US President Donald Trump: I will most likely go to Egypt.
Russian agency: Russia will conduct a nuclear test if the US does
Al-Nakhalah: We are the rightful owners, and we must fight to retrieve our rights
Al-Nakhalah: The enemy and its allies must know that we can never surrender to their terms and diktats after all the sacrifices made
Al-Nakhalah: The prisoner exchange clause can be completed in the next few days, and thus we will have pulled the [explosion] fuse and removed the enemy's justifications for aggression
Al-Nakhalah: The Resistance has expressed its willingness to negotiate on the basis that there are items that can be dealt with positively, the first of which is the prisoner exchange item
Al-Nakhalah: Trump's plan entails the Palestinian people's declaration of complete surrender to the enemy
PIJ Secretary-General, Ziyad al-Nakhalah, in an address aired on Al Mayadeen: The Resistance is engaging in a fierce negotiating battle under the so-called Trump plan
Russian Federation Council approves joint military cooperation agreement with Cuba

Tough budget plan awaits the UK; tax hikes, spending cuts: Hunt

  • By Al Mayadeen English
  • Source: Agencies
  • 17 Nov 2022 15:45
  • 1 Shares
4 Min Read

British Finance Minister Jeremy Hunt announces that the country is in recession, vowing a series of tax increases and tighter public spending in a tough budget plan.

  • x
  • UK finance minister announces tax hikes, spending cuts, recession
    UK Finance Minister Jeremy Hunt and UK PM Rishi Sunak

The United Kingdom's government unveiled a £55 billion ($66 billion) fiscal plan on Thursday, aiming to plug a gaping hole in the public finances and restore Britain's economic credibility as the country teeters on recession.

In his much-anticipated first Autumn statement, Finance Minister Jeremy Hunt proposed around £30 billion in spending cuts and £25 billion in tax increases.

The measures include a six-year freeze on income tax thresholds and lowering the top rate of income tax to £125,000 — moves directly opposed to the major cuts touted in September’s catastrophic mini-budget. “Unfunded tax cuts are as risky as unfunded spending,” Hunt told the House of Commons.

Read next: UK plans to increase taxes to overcome a billion pounds deficit

The measures, according to Hunt, will reassure markets that the government and the Bank of England are now working in "lockstep".

“We need a fiscal and monetary policy to work together,” he said. “That means the government and the Bank working in lockstep. It means, in particular, giving the world confidence in our ability to pay our debts.”

A recessionary fiscal plan

Millions of Britons will face increased financial hardship as they face the country's worst cost-of-living crisis in decades and its longest-ever recession.

However, Hunt stated that they were necessary to limit 41-year-high inflation and restore the United Kingdom's reputation, referring to the plan as the "ultimate growth strategy." ″We must continue a relentless fight to bring (inflation) down, including a rock-solid commitment to rebuild our public finances,” Hunt said.

Related News

UK seizes Andrew Tate's £180k supercar deposit over tax evasion

Wealthy Brits avoiding more tax than previously thought: Watchdog

Other measures announced included a 10% increase in the state pension, benefits, and tax credits in line with September's inflation figure, as well as an increase in the National Living Wage from the current level of £9.50 an hour for those aged 23 and up.

Read next: Britain warns of incoming budgetary trouble after Truss debacle

The Finance Minister confirmed that the energy industry will be targeted with an expanded windfall tax of 35% up from 25%. 

The statement on Thursday was accompanied by a long-awaited set of projections from the United Kingdom's independent Office for Budget Responsibility (OBR), which painted a bleak economic picture for the country.

The UK is now in recession, but the government's plan will make the downturn shallower and unemployment lower than previously predicted, according to Hunt.

Testing the government 

The United Kingdom's new strategy sets the tone for Prime Minister Rishi Sunak's tenure, as he presides over a period of fiscal austerity and dwindling Conservative Party support.

It is also a watershed moment for Hunt, who was appointed last month to restore the United Kingdom's credibility after predecessor Kwasi Kwarteng's now-infamous mini-budget of unfunded tax cuts caused market chaos and required emergency intervention.

Though Hunt's then-boss Liz Truss resigned quickly, becoming the UK's shortest-serving PM, successor Rishi Sunak kept him on in a bid to ensure stability after months of political turmoil.

Read next: UK inflation returns above 10 percent

Earlier this month, the Bank of England issued a warning that the UK is experiencing the longest recession since records began over a century ago.

According to official data released on Friday, the economy contracted by 0.2% in the third quarter of 2022. The second quarter of negative growth in the future would indicate that the UK is experiencing a technical downturn.

At the end of a decade of near-stagnant income growth, the United Kingdom has become the only Group of Seven (G7) country that has yet to return to pre-pandemic size.

  • United Kingdom
  • Tax evasion
  • Tax hikes
  • Economic recession
  • UK recession
  • Rishi Sunak
  • Liz Truss

Most Read

Tucker Carlson speaks at a memorial for Charlie Kirk, Sunday, September 21, 2025, at State Farm Stadium in Glendale, Arizona (AP)

Tucker Carlson: Israeli officers gave orders on Iran inside Pentagon

  • Politics
  • 2 Oct 2025
A Hamas fighter in combat fatigues stands before the ceremony for the handover of Israeli captives to the Red Cross in Nuseirat, central Gaza Strip, Saturday, February 22, 2025 (AP)

Hamas responds to Trump plan, backs Gaza withdrawal, exchange

  • Politics
  • 3 Oct 2025
Mossad’s secret role in Aldo Moro’s 1978 murder revealed

Mossad’s secret role in Aldo Moro’s 1978 murder exposed

  • Politics
  • 5 Oct 2025
Al-Quds Brigades strike a command and control center north of Khan Younis, southern Gaza Strip, in an undated screengrab from the al-Quds Brigades military media

Gaza resistance announces major operations against Israeli forces

  • Politics
  • 1 Oct 2025

Coverage

All
War on Gaza

Read Next

All
An Israeli armored vehicle moves on a street of a local market during a military raid in the West Bank refugee camp of Balata, Wednesday, October 8, 2025 (AP)
Politics

Israeli settlers kill Palestinian youth near Ramallah amid raids

Russian Foreign Minister Sergey Lavrov speaks during the Moscow format consultations on Afghanistan in Moscow, Russia, Tuesday, Oct. 7, 2025 (AP)
Politics

Iran interested in resuming nuclear talks: Lavrov

International Monetary Fund (IMF) Managing Director Kristalina Georgieva speaks during a news conference at the International Monetary Fund (IMF) headquarters in Washington, April 25, 2025 (AP)
Politics

IMF head flags US budget, Europe Defense spending challenges

Prime Minister of Italy Giorgia Meloni addresses the 80th session of the United Nations General Assembly, Wednesday, Sept. 24, 2025, at UN headquarters (AP)
Politics

Meloni faces ICC complaint over Gaza genocide complicity with Israelis

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS