As a result of the Mr Hunt’s announcements, the tax burden in the UK will also now be at its highest since the Second World War, and there are stark warnings about increased bills and higher unemployment as the recession takes hold – as well as predictions the economy will still shrink 1.4% in 2023.
But most of the difficult decisions on spending have been postponed until after the next general, due in 2024.
Both the Resolution Foundation and the Institute for Fiscal Studies will lay out their own analysis of the plans later this morning, but Treasury analysis already suggests around 55% of households will be worse off as a result of the measures.
More on Autumn Statement 2022
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Meanwhile, Labour has blamed “12 weeks of Conservative chaos” and “12 years of Conservative economic failure” for the bleak outlook.
Shadow chancellor Rachel Reeves accused the government of forcing the UK economy into a “doom loop where low growth leads to higher taxes, lower investments and squeezed wages, with the running down of public services”.
During his statement, Mr Hunt distanced himself from the philosophy of Liz Truss’s short-lived government – which promised billions of unfunded tax cuts and sent the markets into turmoil.
Yet, while the chancellor froze tax thresholds, lowered the point the higher rate of income tax kicks in and extended the windfall tax on energy firms (the latter, a Labour policy) amid other measures, he also promised more spending on the NHS, social care and education, as well as re-committing to uprating pensions and benefits in line with inflation.
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2:25
Hunt questioned over autumn statement
Mr Hunt also pledged to continue support for energy bills from April next year – though raising the cap to £3,000 for the average household.
Speaking to reporters after the announcement, he said the government was “helping every bit as much as we can” to reduce the impact of the recession on households and businesses, as well as protecting public services.
But he pointed to those spending decisions, adding: “As soon as the recession is behind us, then, yes, we will consolidate to make sure that we’re balancing our books – and I think that’s what people would want.”
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1:06
’12 weeks of Conservative chaos’ – Rachel Reeves
While many in his party were supportive of the “difficult decisions”, the chancellor made in light of the energy crisis, the war in Ukraine and the fallout from the pandemic – as well as Ms Truss’s tenure in office – other Tories warned against hiking taxes while the country is in a recession.
Former party leader Sir Iain Duncan Smith told Sky News: “My worry is they’ve estimated that they will get certain revenues from their tax rises [but] those tax rises could end up damaging the economy and they won’t get the revenues thereafter, which means they’ll be back again looking for more.
“[There] is every chance that tax increases don’t yield what you think they will, so this could lead to a deeper recession. We need to watch that very carefully and see where it goes.”
And former Wales Secretary David Jones told the Telegraph that the if high taxes continue, “the prospects of Tories winning the next election… are going to become more remote”.
Opposition parties were also quick to condemn the plan, with Liberal Democrat MP Sarah Olney saying it will “cause untold pain for everyone”, and the SNP’s Kirsty Blackman saying it “ushered in a new era of damaging austerity cuts”.
MPs will debate the measures in the Commons on Monday and Tuesday next week.
The BBC has said it regrets not pulling the live stream of Bob Vylan’s “unacceptable” Glastonbury set – as Ofcom said the broadcaster has “questions to answer”.
The corporation has faced mounting criticism over airing the performance on Glastonbury‘s West Holts Stage, during which the rap-punk duo’s frontman Bobby Vylan led chants of: “Free, free Palestine” and: “Death, death to the IDF (Israel Defence Forces)”.
Sir Keir Starmer condemned the remarks as “appalling hate speech”, while festival organiser Emily Eavis said they “crossed a line” – and media watchdog Ofcom has now also released a statement raising concerns.
This morning, a spokesperson for the prime minister did not directly answer when asked if he still had confidence in BBC director-general Tim Davie.
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2:32
What is the Glastonbury controversy?
Footage from Bob Vylan’s set on Saturday showed some of the crowd joining in, as the group performed in front of a screen that said Israel’s actions in Gaza amount to “genocide”.
Afterwards, the BBC said there had been a warning on screen about potential “strong and discriminatory language”, but described the comments as “deeply offensive”.
On Monday, a spokesperson released an updated statement, saying the comments were antisemitic and the performance should have been taken off air.
“The BBC respects freedom of expression but stands firmly against incitement to violence,” the statement said. “The antisemitic sentiments expressed by Bob Vylan were utterly unacceptable and have no place on our airwaves. We welcome Glastonbury’s condemnation of the performance.”
Image: Pic: PA
A judgement to issue a warning on screen while streaming online was in line with editorial guidelines, the spokesperson added, and the performance has not been made available to view on demand.
“The team were dealing with a live situation but with hindsight we should have pulled the stream during the performance. We regret this did not happen.
“In light of this weekend, we will look at our guidance around live events so we can be sure teams are clear on when it is acceptable to keep output on air.”
An Ofcom spokesperson said: “We are very concerned about the live stream of this performance, and the BBC clearly has questions to answer.
“We have been speaking to the BBC over the weekend and we are obtaining further information as a matter of urgency, including what procedures were in place to ensure compliance with its own editorial guidelines.”
In a statement shared on Instagram on Sunday, Bobby Vylan said: “Teaching our children to speak up for the change they want and need is the only way that we make this world a better place.
“As we grow older and our fire starts to possibly dim under the suffocation of adult life and all its responsibilities, it is incredibly important that we encourage and inspire future generations to pick up the torch that was passed to us.”
The latest developments follows severe condemnation from the prime minister, who said there was “no excuse for this kind of appalling hate speech”.
Image: Mo Chara of Kneecap at Glastonbury. Pic: Reuters
Sir Keir also referenced a previous statement that Belfast rap group Kneecap, who were on stage after Bob Vylan, should have been removed from the line-up after one member was charged with a terrorism offence.
“I said that Kneecap should not be given a platform and that goes for any other performers making threats or inciting violence,” he said.
Ms Eavis, whose father Michael co-founded the festival, said in a statement that Bob Vylan had “very much crossed a line”.
She added: “Their chants very much crossed a line and we are urgently reminding everyone involved in the production of the festival that there is no place at Glastonbury for antisemitism, hate speech or incitement to violence.”
The Israeli embassy posted on X in the hours after the set, saying it was “deeply disturbed by the inflammatory and hateful rhetoric”.
It said the slogan used “advocates for the dismantling of the State of Israel”.
In a separate post on X on Sunday, Israel’s foreign ministry published graphic footage following the attack by Hamas on the Nova festival in Israel on 7 October 2023, and the Campaign Against Antisemitism (CAA) said it would be formally complaining to the BBC over its “outrageous decision” to broadcast the performance.
Speaking to Sky News’ Sunday Morning With Trevor Phillipson behalf of the government, Health Secretary Wes Streeting described the chant as “appalling”, especially at a music festival – “when there were Israelis at a similar music festival who were kidnapped, murdered, raped, and in some cases still held captive”.
He added that while “there’s no justification for inciting violence against Israelis… the way in which Israel’s conducting this war has made it extremely difficult for Israel’s allies around the world to stand by and justify”.
Lucy McMullin, who was in the crowd for Bob Vylan, told Sky News: “When there’s children and civilians being murdered and starved, then I think it’s important that people are speaking out on these issues.
“However, inciting more death and violence is not the way to do it.”
Police have said they are reviewing footage of both the Bob Vylan and Kneecap sets to assess whether any criminal offences were committed.
Speaking to Sky News earlier today, women and equalities minister Baroness Jacqui Smith said the comments “clearly” over-stepped the mark.
“I’m surprised that the BBC carried on broadcasting them live when it was obvious what was happening.”
“The loss of Christian has deeply affected his family, friends, and the wider community who knew him well,” his family said in a statement after his death.
“Christian brought energy, humour, and warmth wherever he went.
“He was a devoted father-of-three and a much-loved son, brother, partner and friend.”
His family has asked for privacy as they “come to terms with their grief”.