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Jeremy Hunt has acknowledged it will “take time” to bring taxes down, but he had “made a start” with his autumn statement.

The chancellor admitted the tax take – the total the government collects – stood at £45bn, outstripping the benefits of the cuts announced in the fiscal event.

The headline-grabbing announcement in Mr Hunt’s statement was that the main 12% national insurance rate would fall to 10% from 6 January – saving those on an average salary of £35,000 more than £450 a year.

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Chancellor announces national insurance cut

The chancellor also abolished Class 2 national insurance payments for the self-employed to show the government “values their work”.

Mr Hunt sought to portray the autumn statement as a tax giveaway in light of the NI cuts – worth £9bn – but economists have pointed out that the overall tax burden remains at a record high because of the continued freeze on tax thresholds.

In an interview with Sky News’ political editor Beth Rigby, the chancellor conceded that “taxes go up from freezing thresholds”.

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He said: “If you’re trying to say that it’s going to take time to get taxes down to the level they were, then I agree.

“But what I said was when it was responsible to do so, when it wouldn’t affect inflation, I would make a start.

“We’ve done that today and we are a party that believes if we want to grow the economy, then we need to have a lightly taxed economy, and we’ve made a step which, by the way, for someone on average earnings is going to be about £450 – so it’s not insignificant.”

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UK growth ‘a dead end’ under Tories

Mr Hunt was asked whether he could call the statement a tax giveaway given that the £45bn tax take “dwarfed” the effects of the national insurance cuts.

“Have you taxed more, or cut taxes more?”

“We have put taxes up because it was the right thing to do to support families,” Mr Hunt replied.

Pressed again on whether taxes have been going up or down under the government, the chancellor said: “Taxes have gone up and we are starting to bring them down.”

Mr Hunt also denied that taxes had gone up in part to “clear up the mess” of the previous government under Liz Truss, pointing instead to the “once-in-a-century pandemic” and “energy shock” caused by Russia’s invasion of Ukraine.

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Analysis: Autumn Statement 2023

Forecasts from the Office for Budget Responsibility, released after the statement, showed taxes are still trending upwards – with a post-war high of 37.7% set to be reached by 2028/29 under the current government plans.

The body put this down to so-called “fiscal drag” – with people drawn into higher tax brackets as their pay increases.

According to the OBR, by 2028/29, frozen thresholds will result in nearly four million additional workers paying income tax – with three million more moved to the higher rate and 400,000 more paying the additional rate.

Mr Hunt was rumoured to have considered income tax cuts in the autumn statement, but it is thought he may defer this to the March budget next year.

Asked whether he would use that opportunity to cut income tax, he replied: “If it’s responsible to do so, if we can do so without increasing borrowing, then of course, as a Conservative, I would like to bring down the tax burden – but I will only do so in a responsible way and one that doesn’t fuel inflation after the great success we’ve had in halving it.”

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US Supreme Court will not review IRS case involving Coinbase user data

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US Supreme Court will not review IRS case involving Coinbase user data

US Supreme Court will not review IRS case involving Coinbase user data

A lower court ruling will stand in a case involving a Coinbase user who filed a lawsuit against the IRS after the crypto exchange turned over transaction data.

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First US staking ETF to launch Wednesday, giving investors exposure to Solana

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First US staking ETF to launch Wednesday, giving investors exposure to Solana

First US staking ETF to launch Wednesday, giving investors exposure to Solana

REX Shares will launch the first US staked crypto ETF this week, giving investors direct exposure to SOL with staking rewards.

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Government accused of ‘stark’ contradiction over position on Gaza genocide allegations

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Government accused of 'stark' contradiction over position on Gaza genocide allegations

The government has won a long-running legal challenge about its decision to continue allowing the sale of spare parts for F-35 fighter jets to Israel, while suspending other arms licences over concerns about international humanitarian law in Gaza.

But a key part of its case has highlighted mixed messaging about its position on the risk of genocide in Gaza – and intensified calls for ministers to publish their own assessment on the issue.

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Lawyers acting for the government told judges “the evidence available does not support a finding of genocide” and “the government assessment was that…there was no serious risk of genocide occurring”.

Therefore, they argued, continuing to supply the F-35 components did not put the UK at risk of breaching the Genocide Convention.

This assessment has never been published or justified by ministers in parliament, despite numerous questions on the issue.

Some MPs argue its very existence contrasts with the position repeatedly expressed by ministers in parliament – that the UK is unable to give a view on allegations of genocide in Gaza, because the question is one for the international courts.

For example, just last week Deputy Prime Minister Angela Rayner told PMQs “it is a long-standing principle that genocide is determined by competent international courts and not by governments”.

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Situation in Gaza ‘utterly intolerable’

‘The UK cannot sit on our hands’

Green MP Ellie Chowns said: “The government insists only an international court can judge whether genocide is occurring in Gaza, yet have somehow also concluded there is ‘no serious risk of genocide’ in Gaza – and despite my urging, refuse to publish the risk assessments which lead to this decision.

“Full transparency on these risk assessments should not be optional; it is essential for holding the government to account and stopping further atrocity.

“While Labour tie themselves in knots contradicting each other, families are starving, hospitals lie in ruins, and children are dying.

“The UK cannot sit on our hands waiting for an international court verdict when our legal duty under the Genocide Convention compels us to prevent genocide from occurring, not merely seek justice after the fact.”

‘Why are these assessments being made?’

“This contradiction at the heart of the government’s position is stark,” said Zarah Sultana MP, an outspoken critic of Labour’s approach to the conflict in Gaza, who now sits as an independent after losing the party whip last summer.

“Ministers say it’s not for them to determine genocide, that only international courts can do so. Yet internal ‘genocide assessments’ have clearly been made and used to justify continuing arms exports to Israel.

“If they have no view, why are these assessments being made? And if they do, why refuse to share them with parliament? This Labour government, in opposition, demanded the Tories publish their assessments. Now in office, they’ve refused to do the same.”

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Routes for Palestinians ‘restricted’

Judges at the High Court ultimately ruled the case was over such a “sensitive and political issue” it should be a matter for the government, “which is democratically accountable to parliament and ultimately to the electorate, not the court”.

Dearbhla Minogue, a senior lawyer at the Global Legal Action Network, and a solicitor for Al-Haq, the Palestinian human rights group which brought the case, said: “This should not be interpreted as an endorsement of the government, but rather a restrained approach to the separation of powers.

“The government’s disgraceful assessment that there is no risk of genocide has therefore evaded scrutiny in the courts, and as far as we know it still stands.”

Palestinians inspect the damage at an UNRWA school sheltering displaced people that was hit in an Israeli air strike, in Gaza.
Pic Reuters
A Palestinian woman sits amid the damage at an UNRWA school sheltering displaced people. Pic: Reuters
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Pics: Reuters

What is the government’s position?

Government lawyers argued the decision not to ban the export of F-35 parts was due to advice from Defence Secretary John Healey, who said a suspension would impact the whole F-35 programme and have a “profound impact on international peace and security”.

The UK supplies F-35 component parts as a member of an international defence programme which produces and maintains the fighter jets. As a customer of that programme, Israel can order from the pool of spare parts.

Labour MP Richard Burgon said the ruling puts the government under pressure to clarify its position.

“This court ruling is very clear: only the government and parliament can decide if F-35 fighter jet parts – that can end up in Israel – should be sold,” he said.

“So the government can no longer pass the buck: it can stop these exports, or it can be complicit in Israel’s genocide in Gaza.

“On many issues they say it’s not for the government to decide, but it’s one for the international courts. This washing of hands will no longer work.”

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Dozens dead in Gaza after Israeli strikes

Israel has consistently rejected any allegations of genocide.

Prime Minister Benjamin Netanyahu branded a recent UN report on the issue biased and antisemitic.

“Instead of focusing on the crimes against humanity and war crimes committed by the Hamas terrorist organisation… the United Nations once again chooses to attack the state of Israel with false accusations,” he said in a statement.

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‘Gaza disinformation campaign is deliberate’

The UK government has not responded to requests for comment over its contrasting messaging to parliament and the courts over allegations of genocide.

But in response to the judgement, a spokesperson said: “The court has upheld this government’s thorough and lawful decision-making on this matter.

“This shows that the UK operates one of the most robust export control regimes in the world. We will continue to keep our defence export licensing under careful and continual review.

“On day one of this Government, the foreign secretary ordered a review into Israel’s compliance with international humanitarian law (IHL).

“The review concluded that there was a clear risk that UK exports for the IDF (Israel Defence Forces) in the Gaza conflict might be used to commit or facilitate serious violations of IHL.

“In contrast to the last government, we took decisive action, stopping exports to the Israeli Defence Forces that might be used to commit or facilitate serious violations of international humanitarian law in Gaza.”

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