UK’s self-billed ‘Scrooge’ promises tax hikes and spending cuts

LONDON (AP) — Britain’s Treasury chief warned on Sunday of a coming spending slump and tax hikes for cash-strapped Britons as he tries to plug the « black hole » in finances from the country.

Posing as a ‘Scrooge’ figure ahead of Thursday’s autumn statement, when he will brief Parliament on the government’s budget measures, Jeremy Hunt said he had been forced to make ‘very difficult decisions’ in his attempt to curb inflation and set the British economy back. on an even keel.

He told UK broadcasters he was determined to make the expected recession as shallow as possible and warned everyone could expect to pay more tax.

« I’m a Conservative chancellor and I think I’ve been quite explicit that taxes will go up. And it’s a very difficult thing for me to do, because I came into politics to do the exact opposite,” he told the BBC, using his official title, Chancellor of the Exchequer.

Hunt is seeking up to £60bn ($71bn) in additional savings and revenue in a bid to tighten public finances and undo some of the damage that economists say was wrought by his predecessor , Kwasi Kwarteng, and former Prime Minister Liz. Framework.

According to the Resolution Foundation, a think tank, Truss and Kwarteng spent £20bn ($23.7bn) on unfunded reductions in National Insurance taxes and stamp duty on property transactions, with £10bn additional losses due to higher interest rates and government borrowing. costs.

Britain’s economy, like that of many other countries, is struggling as Russia’s invasion of Ukraine has driven up food and energy costs, pushing consumer price inflation to highs. 40 year highs.

Britain’s economy contracted in the three months to September, official statistics showed on Friday, as forecasters warned of many months of contraction ahead. The Office for National Statistics said gross domestic product fell 0.2% between July and September, which appeared to signal the start of a long recession.

Earlier this month, the Bank of England announced its biggest interest rate hike in three decades, saying the move was needed to roll back stubbornly high inflation. The central bank raised its policy rate by three-quarters of a percentage point to 3%.

Hunt said he would continue his predecessor’s pledge to help Britons cope with soaring energy bills, but added departments could expect cuts.

« I am Scrooge who is going to do things so that Christmas is never cancelled, » he told The Sunday Times.

The Associated Press