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Welsh Secretary defends £25 billion of tax rises introduced by Chancellor Jeremy Hunt in his autumn budget

27 Nov 2022 2 minute read
David TV Davies speaking on Pawb a’i Farn

Welsh Secretary David TC Davies has defended the £25 billion of tax rises introduced by Chancellor Jeremy Hunt in his autumn budget earlier this month.

Mr Hunt also promised £30 billion of spending cuts, which independent analysts said would mean a prolonged squeeze on public sector pay despite a growing clamour in many services for real-terms increases after the years of austerity.

Writing in the Abergavenny Chronicle, Mr Davies, the MP for Monmouth, said: “I fully understand the anger about tax rises, but I must respectfully point out that the alternative is huge public spending cuts.

“If anyone, including any of the other political parties have a magic idea that will enable the government to cut taxes and increase spending without borrowing more money then I would love to hear it.

“It is absolutely right that the Government has committed to helping the most vulnerable households face the challenges of the cost of living with over £12 billion of additional support being announced in the Autumn Statement.

“The Energy Price Guarantee has been extended until April 2024 which will support every household with the increasing costs of energy. I also welcome the decision to protect the pensions Triple Lock by increasing the State Pension and Pension Credit in line with inflation.”

Bleak

Mr Hunt set out his plans against the backdrop of a bleak set of economic forecasts from the Office of Budget Responsibility (OBR), which said that rampaging inflation as a result of soaring energy prices meant living standards are set to fall by 7% over the next two years – taking them back to where they were in 2014.

According to the OBR, the UK economy is predicted to contract by 1.4% next year, unemployment is expected to rise by more than 500,000 while taxes are set to reach their highest level as a share of national income since the end of the Second World War.


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Mark
Mark
2 months ago

The reason for tax rises is the complete mismanagement of the public purse by the government for the last 12 years. There’s nothing left to cut in the public sector and leave it operationally viable. Most of us will pay for.this dearly, while a select few will ride it out with ease.

It always amazes me that the Conservative party are the most successful political party in the world, given their for the few not the many mantra.

Argol fawr!
Argol fawr!
2 months ago

Defending Sunak inc. is why he’s there. You don’t have to believe everything (anything?) David TC say’s you know.

Last edited 2 months ago by Argol fawr!
Neil Anderson
Neil Anderson
2 months ago

Rishi Sunak, Jeremy Hunt, David Davies et al (and Keir Starmer, Rachel Reeves et al), are economically illiterate. Neither tax rises – except for the rich – or higher interest rates or quantitative tightening (QT) or cuts to public services are necessary. They are a political choice made by a Tory Government – again. This recession was made in 10 Downing Street and the Bank of England. For a quick primer, watch https://www.taxresearch.org.uk/Blog/2022/11/17/on-the-autumn-statement-with-jeremy-vine/ and read Professor Richard Murphy’s blog on Tax Research UK. The solution lies in lower interest rates, reduced taxes and quantitative easing (QE) with the latter delivered… Read more »

Gareth
Gareth
2 months ago

When Lord Hawhaw took to the airwaves, did he talk down the Nazi party, no, because that was not why he was there, this tosser is there to defend and deflect, not come up with a solution to the problems his party has caused, or offer an apology.

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