Jeremy Hunt to set out next budget on 22 November

Published

1 year ago

September 5, 2023

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Jeremy Hunt will set out his next budget on 22 November, the chancellor has told MPs.

He has commissioned an Office for Budget Responsibility (OBR) forecast, which will be presented alongside the Autumn Statement.

The lack of an OBR forecast at his predecessor’s mini-budget last September spooked the markets and sparked a huge economic fallout, pushing up government borrowing costs and putting certain pension funds on the brink of collapse.

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Mr Hunt was drafted in to clean up the mess and retained his position after ex-prime minister Liz Truss resigned just 44 days into her premiership.

Since then he and Rishi Sunak have made it their mission to halve inflation, amid a series of Bank of England interest rate rises.

Speaking in the Commons, Mr Hunt insisted progress was being made as inflation is nearly 40% below its 11% peak.

Confirming the new budget date, he said: “On Friday, the Office for National Statistics published an update to the UK’s GDP growth figures which shows the UK economy was 0.6% larger than pre-pandemic levels by the fourth quarter of 2021.

“It means our economy had the fastest recovery from the pandemic of any large European economy, thanks to decisions such as furlough that protected millions of jobs.

“For that growth to continue we now need to halve inflation, which I am pleased to report is now nearly 40% below its 11% peak. I can also tell the House I will deliver the Autumn Statement on November 22.”

Mr Hunt is likely to face pressure from Tory MPs to commit to tax cuts ahead of the next general election, as the party languishes behind Labour in the polls.

The Spring budget in March – which handed a tax cut to wealthy pensioners – led to warnings that people will be hit with the biggest fall in living standards since records began.

Mr Hunt, pressed over lowering taxes, told Treasury questions that “as a Conservative I want to bring taxes down as soon as we can afford to do so”.

The Treasury and new Defence Secretary Grant Shapps are also likely to come under pressure over defence funding.

Mr Shapps’s predecessor, Ben Wallace, who stepped down from the role last week, had long made clear his desire for greater spending on the UK armed forces.

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Treasury launches inquiry into leak of growth forecasts

Published

6 hours ago

February 12, 2025

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Treasury launches inquiry into leak of growth forecasts

A leak inquiry will take place following reports that economic growth forecasts have been reduced by the government’s financial watchdog.

Bloomberg reported that the Office for Budget Responsibility (OBR) had reduced its growth forecasts in data sent to Chancellor Rachel Reeves last week.

Reduced growth could force the government to cut further spending or increase more taxes.

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The next forecast is set to be published in March – with the process supposed to remain confidential until that point.

The inquiry was confirmed by James Bowler, the most senior civil servant in the Treasury.

He told the House of Commons Treasury Committee: “We will undertake an inquiry, and I’m happy to communicate the outcome of that.”

The government’s attempts to grow the UK economy have proved difficult since the election last year, and businesses have complained about measures introduced in Ms Reeves’s first budget.

Part of Labour’s plan involves increasing house building and development, although these plans were not included in the forecasts for last October’s budget.

Mr Bowler sought to play down the fact that a leak inquiry was happening meant that what was reported by Bloomberg was true.

Asked by committee chair Meg Hillier about the inquiry, the civil servant appeared to indicate about 50 people in the Treasury would have been able to see the forecasts.

He said an investigation into OBR officials would likely also happen, although the body is independent of government.

Downing Street has tried to remain bullish about the economic situation.

A Number 10 spokesperson said: “In recent weeks and months, the [Organisation for Economic Co-operation and Development] and the [International Monetary Fund] have upgraded our growth forecast over the next three years.”

They added: “The government remains relentlessly focused on growth as the only way of sustainably raising living standards and delivering the investment that we need in our public services.”

Both bodies mentioned slightly increased their growth forecasts, but they still remain below 2%.

Last week, the Bank of England halved its growth expectations for the UK – saying it would only increase by 0.75% in 2025, before increasing to 1.5% for the next two years.