Autumn Statement explained: tax cut giveaway or ‘stagnating’ UK?
The Chancellor has promised a ten billion pound giveaway ahead of next year’s General Election – along with what he called “the biggest business tax cut in modern history”.
National insurance will be cut from 12 % to 10 % from January. The business tax break for expensing plant and machinery spending is here to stay. Benefits will rise in line with inflation, and the state pension by 8.5 %, though those who refuse to seek employment could lose access to some assistance.
But the Office for Budget Responsibility analysis paints a different picture. The overall tax burden is still rising – set to reach a new post war high of 37.7%. Inflation will be higher than previous forecasts through to late 2025. Growth has been revised down from 2024 and we’re facing the biggest drop in living standards since records began.
Credit to : Channel 4 News