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Jeremy Hunt’s budget leaves household incomes stagnant and people paying higher taxes despite cuts to public services, the Resolution Foundation has said.

The think tank, which aims to improve the standard of low and middle-income families, said the chancellor had announced an “impressively broad suite of policies” to encourage more people into work.

However, it said: “Britain’s economy remains stuck in a deep funk – with people supported into work but getting poorer, and paying more tax but seeing public services cut.”

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Here are the key findings of the Foundation’s budget analysis.

Beating the odds on a recession

The UK is forecast to have gone through “the biggest energy and inflation shock since the 1970s, while avoiding a recession, with unemployment peaking at just 4.4%,” the Foundation said.

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It compared it to the mid-1970s energy shock which saw a recession with a 3.9 peak-to-trough fall in GDP.

A decline in living standards

However, RF pointed to a “disastrous decline in living standards”, with typical real household disposable incomes on track to remain lower by the end of the forecast in 2027-28 than they were before the pandemic.

“If even the slow growth of the past decade had continued, incomes would still be £1,800 higher than currently projected for 2027-28,” it said.

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Key moments from Hunt’s first budget

Taxes on track to hit 70-year high

RF said taxes as a share of GDP are on track to hit 37.7% by the end of the forecast, a 70-year-high and a 4.7% increase since 2019-20, the equivalent to nearly an extra £4,200 for every UK household.

It said despite this the chancellor only has a quarter of the average fiscal headroom of his three predecessors and would not meet the fiscal targets set by Rishi Sunak, Philip Hammond or George Osborne when they were chancellor.

Help for parents

The analysis notes the budget includes the biggest increase in childcare support on record, which it said would encourage more parents to work and make it worthwhile for many to work longer.

RF said under the current childcare system, a single parent of a one-year-old earning the National Living Wage would see their income fall after childcare costs by £370 if they moved from 25 to 35 hours of work a week.

However under the new system the same single parent would receive an income boost of £700.

However, RF said the richest fifth of households are set to gain £180 on average from the extra childcare entitlement, compared to £130 for the middle fifth of households and £20 for the bottom fifth.

More on Budget 2023:
The key points of the budget at a glance

‘An unneeded tax break for wealthy pension savers’

The report was critical of the chancellor raising the annual allowance and scrapping the lifetime allowance for tax-free saving, which it said cost around £1.2bn and were expected to increase employment by 15,000 – a cost of around £80,000 per extra worker.

However, the Foundation said “even those employment gains may be overstated, given that giving very large wealth boosts will actually encourage some people to retire earlier than they otherwise would have done”.

It said someone with a £2m pension pot will have received a tax cut of almost £250,000.

Austerity

RF said the chancellor had chosen to “ignore pressures on public services”, even though unprotected departments face 10% cuts to real day-to-day spending per capita by the end of the budget, raising to 14% if the newly announced aspiration to raise defence spending to 2.5% of GDP is met over the next parliament.

An investment ‘roller-coaster’

The Foundation said the £28bn three-year increase in investment allowances represents the fifth major corporate tax change in two years, which it said illustrated “the lack of certainty that has frustrated businesses”.

It said: “The policy will deliver a temporary 3% boost to investment, when what Britain actually needs is a permanent 30% boost to catch up with our competitors (France, Germany and the US).”

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‘UK’s underlying challenges remain largely unchanged’

Torsten Bell, chief executive of the Resolution Foundation, said: “Jeremy Hunt’s first budget was a much bigger affair than many expected, combining improvements to the dire economic and fiscal outlook with a significant policy package aimed at boosting longer-term growth in general, and the size of the workforce in particular.

“A step change in childcare support stands out.

“But stepping back, the UK’s underlying challenges remain largely unchanged.

“We are investing too little and growing too slowly. Our citizens’ living standards are stagnant. We ask them to pay higher taxes, while cutting public services.

“No one budget could turn that around, but it’s time Britain did.”

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Drones are sending ‘overwhelming amounts’ of drugs into prisons – and could help inmates escape, report warns

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Drones are sending 'overwhelming amounts' of drugs into prisons - and could help inmates escape, report warns

Sophisticated drones sending “overwhelming amounts” of drugs and weapons into prisons represent a threat to national security, according to an annual inspection report by the prisons watchdog.

HMP chief inspector of prisons Charlie Taylor has warned criminal gangs are targeting jails and making huge profits selling contraband to a “vulnerable and bored” prison population.

The watchdog boss reiterated his concerns about drones making regular deliveries to two Category A jails, HMP Long Lartin and HMP Manchester, which hold “the most dangerous men in the country”, including terrorists.

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Ex-convict: Prison is ‘birthing bigger criminals’

Mr Taylor said “the police and prison service have in effect ceded the airspace” above these two high-security prisons, which he said was compromising the “safety of staff, prisoners, and ultimately that of the public”.

“The possibility now whereby we’re seeing packages of up to 10kg brought in by serious organised crime means that in some prisons there is now a menu of drugs available,” he said. “Anything from steroids to cannabis, to things like spice and cocaine.”

“Drone technology is moving fast… there is a level of risk that’s posed by drones that I think is different from what we’ve seen in the past,” warned the chief inspector – who also said there’s a “theoretical risk” that a prisoner could escape by being carried out of a jail by a drone.

He urged the prison service to “get a grip” of the issue, stating: “We’d like to see the government, security services, coming together, using technology, using intelligence, so that this risk doesn’t materialise.”

The report highlights disrepair at prisons around the country
Image:
The report highlights disrepair at prisons around the country

The report makes clear that physical security – such as netting, windows and CCTV – is “inadequate” in some jails, including Manchester, with “inexperienced staff” being “manipulated”.

Mr Taylor said there are “basic” measures which could help prevent the use of drones, such as mowing the lawn, “so we don’t get packages disguised as things like astro turf”.

Responding to the report, the Prison Advice and Care Trust (PACT) said: “The ready access to drugs is deeply worrying and is undermining efforts to create places of rehabilitation.”

Mr Taylor’s report found that overcrowding continues to be what he described as a “major issue”, with increasing levels of violence against staff and between prisoners, combined with a lack of purposeful activity.

Some 20% of adult men responding to prisoner surveys said they felt unsafe at the time of the inspection, increasing to 30% in the high security estate.

Andrea Coomber, chief executive of the Howard League for Penal Reform, said: “This report is a checklist for all the reasons the government must prioritise reducing prison numbers, urgently.

“Sentencing reform is essential, and sensible steps to reduce the prison population would save lives.”

Read more UK news:
The human impact of the Post Office scandal
Govt to ban ‘appalling’ NDAs that silence victims

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May: Male prison capacity running at 99%

The report comes after the government pledged to accept most of the recommendations proposed in the independent review of sentencing policy, with the aim of freeing up around 9,500 spaces.

Those measures won’t come into effect until spring 2026.

Prisons Minister Lord Timpson said Mr Taylor’s findings show “the scale of the crisis” the government “inherited”, with “prisons dangerously full, rife with drugs and violence”.

He said: “After just 500 prison places added in 14 years, we’re building 14,000 extra – with 2,400 already delivered – and reforming sentencing to ensure we never run out of space again.

“We’re also investing £40m to bolster security, alongside stepping up cooperation with police to combat drones and stop the contraband which fuels violence behind bars.”

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Post Office scandal: Daughter has had ‘panic attacks’ since mum was accused of stealing

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Post Office scandal: Daughter has had 'panic attacks' since mum was accused of stealing

The daughter of a Post Office victim has told Sky News she suffered “dark thoughts of suicide” in the years after her mother was accused of stealing.

Kate Burrows was 14 years old when her mother, Elaine Hood, was prosecuted and subsequently convicted in 2003.

The first public inquiry report on the Post Office – examining redress and the “human impact” of the scandal – is due to be published today.

“I’ve suffered with panic attacks from about 14, 15 years old, and I still have them to this day,” Kate said.

“I’ve been in and out of therapy for what feels like most of my adult life and it absolutely categorically goes back to [what happened].”

Kate and Rebecca with their mother, Elaine
Image:
Kate and Rebecca with their mother, Elaine

Kate, along with others, helped set up the charity Lost Chances, supporting the children of Post Office victims. She hopes the inquiry will recognise their suffering.

“It’s important that our voices are heard,” she said. “Not only within the report, but in law actually.

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“And then maybe that would be a deterrent for any future cover-ups, that it’s not just the one person it’s the whole family [affected].”

Her sister, Rebecca Richards, who was 18 when their mother was accused, described how an eating disorder “escalated” after what happened.

“When my mum was going through everything, my only control of that situation was what food I put in my body,” she said.

Elaine Hood with her husband
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Elaine with her husband

She also said that seeing her mother at court when she was convicted, would “stay with me forever”.

“The two investigators were sat in front of my dad and I, sniggering and saying ‘we’ve got this one’.

“To watch my mum in the docks handcuffed to a guard… not knowing if she was going to be coming home… that is the most standout memory for me.”

The sisters are hoping the inquiry findings will push Fujitsu into fulfilling a promise they made nearly a year ago – to try and help the children of victims.

Rebecca Richards and Kate Burrows
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The siblings were teenagers when their mum was unfairly prosecuted

Last summer, Kate met with the European boss of the company, Paul Patterson, who said he would look at ways they could support Lost Chances.

Despite appearing at the inquiry in November last year and saying he would not “stay silent” on the issue, Kate said there has been little movement in terms of support.

“It’s very much a line of ‘we’re going to wait until the end of the inquiry report to decide’,” she said.

“But Mr Patterson met us in person, looked us in the eye, and we shared the most deeply personal stories and he said we will do something… they need to make a difference.”

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2024: Paula Vennells breaks down in tears

Fujitsu, who developed the faulty Horizon software, has said it is in discussions with the government regarding a contribution to compensation.

The inquiry will delve in detail into redress schemes, of which four exist, three controlled by the government and one by the Post Office.

Victims of the scandal say they are hoping Sir Wyn Williams, chair of the inquiry, will recommend that the government and the Post Office are removed from the redress schemes as thousands still wait for full and fair redress.

A Department for Business and Trade spokesperson said they were “grateful” for the inquiry’s work, describing “the immeasurable suffering” victims endured and saying the government has “quadrupled the total amount paid to affected postmasters”, with more than £1bn having now been paid to thousands of claimants.

Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK

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Jury shown CCTV and bodycam footage of brothers allegedly assaulting police at Manchester Airport

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Jury shown CCTV and bodycam footage of brothers allegedly assaulting police at Manchester Airport

CCTV and police bodycam footage allegedly showing three police officers being assaulted at Manchester Airport has been played to jurors.

Mohammed Fahir Amaaz, 20, and his brother, Muhammad Amaad, 26, are said to have struck out after police were called to the airport on 23 July last year, following Amaaz allegedly headbutting a customer at a Starbucks in Terminal 2.

Minutes later, three police officers approached the defendants at the paystation in the terminal’s car park.

A jury at Liverpool Crown Court today watched CCTV footage from opposite angles, which captured what the prosecution says was a “high level of violence” being used by the siblings.

The prosecution says Amaaz resisted as officers tried to move him to arrest him, and Amaad then intervened.

Junior counsel Adam Birkby suggested Amaaz threw 10 punches, including one to the face of PC Lydia Ward, which knocked her to the floor.

His brother Amaad is then said to have aimed six punches at firearms officer PC Zachary Marsden.

Amaaz also allegedly kicked PC Marsden and struck firearms officer PC Ellie Cook twice with his elbow.

He is said to have punched PC Marsden from behind and had a hold of him, before PC Cook discharged her Taser.

Human Rights lawyer Aamer Anwar (centre) arrives with Mohammed Fahir Amaaz (left) and Muhammed Amaad (right) at Liverpool Crown Court, where
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Mohammed Fahir Amaaz (left) and Muhammed Amaad (right) arrive at the court with their lawyer. Pic: PA

The bodycam and CCTV footage, submitted as evidence by the prosecution, allegedly shows the officers’ arrival in the Terminal 2 car park and their attempts to arrest the siblings, as well as their exchanges with them.

PC Ward can be heard saying “Oi, you b*****d” in footage from her bodycam, the prosecution evidence appears to show.

She then appears to fall to the floor and screams.

PC Cook, who is pointing her Taser at one of the defendants, then allegedly says: “Stay on the floor, stay on the floor whatever you do.”

“Get back, get back,” PC Ward appears to say.

The bodycam footage, shown to the jury by the prosecution, shows PC Marsden, who is also pointing his Taser, appear to approach the defendant who is lying on the ground and kick out at him.

Mr Birkby said: “Mr Amaaz, while prone, lifts his head towards the officers. PC Marsden kicks Mr Amaaz around the head area.

“PC Marsden stamps his foot towards the crown of Mr Amaaz’s head area but doesn’t appear to connect with Mr Amaaz.”

Amaaz denies three counts of assault occasioning actual bodily harm to the three police officers and one count of assault to Abdulkareem Ismaeil, the customer at Starbucks.

Amaad denies one count of assault occasioning actual bodily harm to PC Marsden.

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