The Chancellor delivered his Autumn Statement this afternoon, during which he outlined his latest tax and spending plans and reaffirmed the Government’s commitment to eliminating the structural deficit – ie ensuring that spending does not exceed tax revenue. Public spending will exceed tax revenues by £120,000,000,000 this year which shows the size of the task.
Despite the difficult economic climate in the UK and elsewhere in the world the Chancellor was able to announce some good news:
Basic state pension will increase 2.5% in April, taking it up to £110.15. This rise is higher than inflation or earnings increases thanks to the Government’s triple lock.
These measures will be paid for by the following measures – these ensure the pain of dealing with our current deficit is spread fairly:
The economic situation is tough. We’re dealing with the debt problems in the middle of a recession in the Eurozone, a lack of global confidence and a struggling US economy. This has meant that our growth forecasts have been downgraded. As a result of this, it will take four years, not three to get out debt falling – but we are making progress with the deficit now 25% lower than we inherited.
It’s taking time, but the Government has ensured Britain is on the right track. Despite challenges, the Chancellor has managed to scrap the Fuel Duty Delay, speed up the increase in the personal allowance, increase the state pension and help businesses in my constituency.