The chancellor’s autumn statement is expected to include both tax increases and public spending cuts
Get ready for Austerity 2.0. The message coming out of 10 and 11 Downing Street is that a belt-tightening autumn statement will include both tax increases and public spending cuts. Ahead of Jeremy Hunt’s announcement on 17 November , the pitch is being carefully rolled.
The Treasury plans have a strong sense of deja vu about them, since the first economic act of David Cameron’s coalition government in 2010 was a £40bn package of measures designed to balance the books. Back then, the global financial crisis had punched a hole in the state’s finances; in 2022 the damage has been caused by the pandemic and Russia’s invasion of Ukraine.