Andrew Bailey says UK economic recovery lags significantly behind US and EU

Chancellor Jeremy Hunt is set to present his budget to parliament today as he seeks to clarify how Rishi Sunak’s government plans to weather an economic ‘storm’.

He is now expected to unveil a package of tax hikes worth £25billion and spending cuts of £35billion to fill a £60billion funding black hole sterling in the Treasury coffers and to reassure world markets that Britain remains a trusted trading partner.

He will tell MPs his statement will put the UK on a ‘balanced path to stability’ as it tackles the ‘enemy’ of inflation, which has hit its highest level in 41 years.

Mr Hunt will say his ‘tough decisions’ are needed to keep mortgage rates low and fight sky-high energy and food prices which are intensifying the cost of living crisis.

It comes after Bank of England Governor Andrew Bailey said the UK economy had suffered a “significantly” worse recovery from Covid than the US and EU.

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Fall budget: here’s what to expect

Chancellor Jeremy Hunt is set to introduce a package of sweeping spending cuts and tax hikes as part of a plan he says will strengthen Britain’s defenses against an economic “storm”.

During a series of media interviews on Sunday morning, Chancellor Rishi Sunak warned that everyone in the UK will end up ‘paying a little more tax’ as a result of what he will reveal Thursday.

Joe Sommerlad has the details on what we can expect from the fall budget:

Sravasti DasguptaNovember 17, 2022 04:05

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Watch: Liz Truss and Kwasi Kwarteng treated Britons like ‘lab rats’, says Lisa Nandy

Liz Truss and Kwasi Kwarteng treated Brits like ‘lab rats’, says Lisa Nandy

Emily AtkinsonNovember 17, 2022 03:45

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Jeremy Hunt urged to intervene on ‘deadly’ runaway inflation and recession

Britain’s economy faces a ‘deadly combination of recession and runaway inflation’ without intervention in tomorrow’s budget, a leading business group has warned.

The British Chambers of Commerce (BCC) called on Jeremy Hunt to take targeted action to dampen inflation and boost growth in his autumn statement on Thursday.

It comes as the Chancellor warned that soaring inflation was ‘preventing any chance’ of long-term economic growth, as he hinted at tough tax hikes ahead.

Our political correspondent Peter Jon see you:

Emily AtkinsonNovember 17, 2022 03:00

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Watch: Martin Lewis shares ‘quick hits on Christmas shopping’ and tips for saving money for the holiday season

Martin Lewis shares ‘quick Christmas shopping’ and tips for saving money for the holiday season

Emily AtkinsonNovember 17, 2022 02:15

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Rishi Sunak pledges to release tax returns in first year as PM

Rishi Sunak promised that in the coming year he would become the first prime minister since 2016 to publish his tax returns full.

Mr Sunak originally made the promise during his unsuccessful Conservative leadership campaign against Liz Truss this summer.

But he has yet to make the figures public, prompting a warning from Liberal Democrat Chief Whip Wendy Chamberlain that failing to deliver on his promise could further damage public trust in the Conservative Party.

Our political editor Andre Bécasse reports:

Emily AtkinsonNovember 17, 2022 01:30

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10 areas of the UK where property prices are expected to fall the most

UK real estate prices are widely predicted to fall in the face of the spiral mortgage rates and rising rental prices, but new research shows the fall is likely to be steeper in some areas than others.

With a deep and long recession on the horizon, the impact of stalled demand for mortgage approvals, after the disastrous Liz Truss-Kwasi Kwarteng mini-budget in September, is beginning to pressure buyer demand in the real estate market.

New figures from home sellers advisory service PropCast show demand has fallen sharply in 10 UK counties, which could pave the way for a more dramatic fall in house prices in these areas.

Emily AtkinsonNovember 17, 2022 12:45 a.m.

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Jeremy Hunt promises tax hikes and spending cuts needed to ‘weather the economic storm’

Chancellor Jeremy Hunt will promise a plan to weather an economic ‘storm’ as he risks a backlash by unveiling a £54billion package of tax hikes and spending cuts.

He will insist to MPs on Thursday that his autumn statement puts the UK on a ‘balanced path to stability’ as it tackles the ‘enemy’ of inflation, which has reached its highest level in 41 years.

Mr Hunt will say his “tough decisions” are needed to keep mortgage rates low and tackle soaring energy and food prices that are intensifying the cost of living crisis.

Emily AtkinsonNovember 17, 2022 00:00

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Watch: Andrew Bailey says Britain’s economic recovery lags significantly behind US and EU

Andrew Bailey says UK economic recovery lags significantly behind US and EU

Emily AtkinsonNovember 16, 2022 11:00 p.m.

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Brexit added 6% inflation to food prices, says Bank of England official

Dr Swati Dhingra also said that British workers had suffered a 2% reduction in their wages in real terms due to the UK’s departure from the EU, while members of the Monetary Policy Committee (MPC) of the bank appeared before the Treasury Committee of Parliament.

Living standards are under immense pressure around the world this year due to record inflation, particularly in food and energy prices, but Dr Dhingra said Britain will suffer more because she had left the EU.

Emily AtkinsonNovember 16, 2022 10:15 p.m.

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Tory MPs call on Jeremy Hunt to cut fuel tax in the fall

Among MPs calling for ‘critical’ intervention to be included in long-awaited budget statement is former home secretary Priti Patel1922 Chairman of the Committee Mr. Graham Brady and former Secretary of Northern Ireland Brandon Lewis.

Led by former education minister Jonathan Gullis, the letter opens: “My fellow MPs and I want to see fuel taxes reduced to stimulate growth, but at least frozen at current levels for the duration of this parliament.”

Emily AtkinsonNovember 16, 2022 9:30 p.m.