Autumn Statement 2023: Tax cuts about long-term growth, not next election, claims chancellor
Chancellor Jeremy Hunt has insisted his tax cuts are about “long-term growth” for the economy, calling it “silly” to think they were instead about the timing of the next election.
The Conservative Party has been told to be ready for a general election from 1 January, a senior government source told Sky News’s political editor Beth Rigby, with a vote being called as early as May if Wednesday’s autumn statement goes down well with voters.
In his speech to the Commons, Mr Hunt announced a raft of measures that some see as a pre-election giveaway, including reducing national insurance for employees from 12% to 10% and scrapping it entirely for the self-employed.
But economists have pointed out that the overall tax burden will remain at a record high because of the continued freeze on tax thresholds.
Politics live: ‘Clear choice’ at next election, says Hunt
The chancellor told Sky News he hadn’t chosen “the most populist tax cuts”, with most of the policies aimed at boosting business growth.
But he denied the NI cuts were there to win over voters ahead of a campaign, saying: “It’s silly to think about this in terms of the timing of the next election. We’re trying to make the right decisions for long-term growth of the economy.”
The tax cuts came amid long-standing pressure from the Tory backbenches to reduce the burden on both the public and business, which has been sat at a 70-year high.
But a general election is also looming, with the government having to call the ballot by January 2025 at the latest, and the Conservatives are still lagging behind Labour in the polls.
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Hunt: It will ‘take time’ to lower taxes
A senior government source told Beth Rigby that the Tories’ campaign director, Issac Levido, is due to join the party’s headquarters on a full-time basis from the new year in order to make sure they are ready for the election as soon as possible.
Another senior source also told Sky News’ political editor that the plan was to “prepare for November” but be “ready for May”, in case the tax cuts help them narrow the gap, giving them a better chance of winning an historic fifth term in office.
But it also gives them an option if the measures go down badly on their own backbenchers and a confidence vote is called on Prime Minister Rishi Sunak’s leadership, allowing him to trigger a snap election.
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Mr Hunt defended the fact the tax burden had been so high in recent years, telling Sky News’ Kay Burley “it was right to help families” through COVID and the cost of living crisis, but that comes at a cost.
“I also think it’s right to make a start in bringing down taxes,” he added. “But the taxes that I brought down are not the crowd pleasers that were on the tip of everyone’s tongues, inheritance tax or income tax.
“They’re the taxes that are going to help businesses grow, and that is the way that we will increase our long term prosperity, raise wages, raise living standards. And that was the choice that a Conservative government made yesterday.”
He added: “What I do acknowledge is that we’re going to show discipline in public spending. It’s not going to grow in real terms as fast as some people would like.
“But that is happening because I’m choosing to cut taxes mainly for business, and to help businesses recruit more people.
“I accept that we are going to have to make difficult decisions, not do all the spending that everyone would want. But what I would say in the longer run is if you want to put more money into the NHS, you need a strong economy.”
The chancellor also attempted to draw a line in the sand between the Tories and Labour, adding: “What Conservatives say is the only way that we’ll increase prosperity for families up and down the country is by making businesses more competitive. It’s what economists call supply side measures.
“The Labour approach is to boost demand in the economy by raising borrowing by £28bn a year. I agree that has a short term impact, but the longer term result of increasing borrowing is more debt, higher debt payments, that means that taxes have to go up to pay for them, that makes our economy less competitive.
“So there is a very big difference between the Conservative approach and the Labour approach. And why, in the end, do people vote Conservative in elections? It’s because they trust us to make decisions for the long term growth of the economy. That’s what we did yesterday.”
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UK growth ‘a dead end’ under Tories
Giving her assessment of the autumn statement, Labour’s shadow chancellor, Rachel Reeves said there “wasn’t anything… that remotely compensates for the tax increases that we have had under the Conservatives these last four years” and the tax burden under the Tories was just set to increase.
Speaking to Sky News, she added: “In the end, how do you know if you’re better off? It’s your bank balance.
“And the truth is that this will be the first parliament ever where real disposable incomes are going to be lower at the end of it than they were at the beginning.
“People can see that when they look at their bank statements, when they log in to their bank accounts and see that the taxes that are being taken, the mortgage payments that are going out, the gas and electricity bills… that again are going to rise in January, all putting big pressure on the family finances and the tax increases that have already been announced [are more] than the chancellor gave back yesterday.”
A man has been convicted of drugging and raping 10 women in London and China between 2019 and 2023.
Chinese PhD student Zhenhao Zou, 28, filmed nine of the attacks as “souvenirs”, and kept a trophy box of women’s belongings, jurors in his trial were told.
Warning: This article contains details of sexual offences
He was accused in court of drugging and raping three women in London and seven in China between 2019 and 2023.
Jurors at Inner London Crown Court found him guilty of 11 charges of rape against 10 women, including two who have been identified and another eight who have yet to be traced.
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Moment police arrest student guilty of rape
The mechanical engineering student was also convicted of three counts of voyeurism, 10 of possession of an extreme pornographic image, one of false imprisonment and three of possession of a controlled drug with intent to commit a sexual offence, namely butanediol.
He was cleared of two further counts of possession of an extreme pornographic image and one of possession of MDMA with intent to commit a sexual offence.
The trial heard Zou kept a ‘lost property box’ full of women’s belongings. Pic: Met Police
The jury has not reached verdicts on four counts of possession of drugs with intent to commit a sexual offence.
Zou – who first moved to Belfast in 2017 to study mechanical engineering at Queen’s University before moving to London in 2019 – showed no visible reaction as the verdicts were read out in court.
Catherine Farrelly KC, prosecuting, told jurors during the trial that Zou “presents as a smart and charming young man” but is “also a persistent sexual predator; a voyeur and a rapist”.
A discreet camera belonging to Zou. Pic: Met Police
Zou, who also used the name Pakho online, befriended fellow Chinese students on WeChat and dating apps, before inviting them for drinks and drugging them at his flats in London or an unknown location in China, the court heard.
The jury heard how he would secretly film his attacks using a mobile device and hidden cameras, and was shown evidence found on SD cards at his accommodation of him raping unconscious women in London and in China.
Senior Crown Prosecution Service prosecutor Saira Pike thanked the “incredibly strong and brave” women who came forward to report his “heinous” crimes.
“Zou is a serial rapist and a danger to women,” she said.
“In some instances, we have not been able to identify Zou’s victims. Without knowing who these women are, we have not been able to support them through a deeply distressing period of time.
“We have always been determined to seek justice for both the unidentified and identified victims in this case.”
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