Discover and read the best of Twitter Threads about #SpringStatement
Most recents (16)
The #SpringStatement is a shocking betrayal of millions of households in the UK who need urgent support.
@RishiSunak had an opportunity to help families via a windfall tax on extraordinary oil & gas profits, & failing to seize that is morally and intellectually indefensible.
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@RishiSunak had an opportunity to help families via a windfall tax on extraordinary oil & gas profits, & failing to seize that is morally and intellectually indefensible.
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UK oil & gas cos are awash with cash. They're expected to enjoy the highest cash flows this year *since North Sea drilling began in the 70s*. They're also benefiting from a fiscal regime that has the lowest govt tax take in the world & the highest rate of return for investors.
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Sunak says he’s choosing not to impose a windfall tax because he wants to encourage investment in new UK production. But even with the incredibly generous fiscal regime we've had in place, inc 100% tax relief for new projects, there's little appetite for boosting production.
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We’ve been told over and over that Levelling Up is the government’s number one priority.
How many times did Rishi Sunak mention it in his #SpringStatement?
Answer: 0️⃣
And it gets worse…
A brief 🧵
How many times did Rishi Sunak mention it in his #SpringStatement?
Answer: 0️⃣
And it gets worse…
A brief 🧵
You can’t level up when you’re taking money out of people’s pockets.
That’s money taken out of our high streets and local economies.
Promising tax cuts in 2 years’ time doesn’t help when he’s hiking taxes in less than 2 weeks.
That’s money taken out of our high streets and local economies.
Promising tax cuts in 2 years’ time doesn’t help when he’s hiking taxes in less than 2 weeks.
Rishi Sunak could have announced more money for our most disadvantaged communities.
But we heard nothing 🤐
In fact he’s now refusing to guarantee we’ll get back funding that we’ve lost - something we were promised in the Tory manifesto.
yorkshirepost.co.uk/news/politics/…
But we heard nothing 🤐
In fact he’s now refusing to guarantee we’ll get back funding that we’ve lost - something we were promised in the Tory manifesto.
yorkshirepost.co.uk/news/politics/…
After today's #SpringStatement and the breathtaking failure to deal with the living standards crisis, many of my constituents and millions around our country will be not merely be forced to make a choice between eating and heating. They're going to be priced out of doing either.
THREAD
But this isn’t a crisis that started with today’s #springstatement Nor did it start with the invasion of Ukraine or the 2008 banking crash or the decade of austerity that followed. Instead, it started in 1979.
But this isn’t a crisis that started with today’s #springstatement Nor did it start with the invasion of Ukraine or the 2008 banking crash or the decade of austerity that followed. Instead, it started in 1979.
This is when the Thatcherite economic ‘revolution’ began. An political/economic system that has dominated for 50 years. One that even now dominates the limits of what our MSM will concede is possible.
Some fiscal charts on today's #SpringStatement 🧵- The Chancellor benefitted from a significant improvement in the underlying fiscal outlook, with the OBR expecting cumulative borrowing over the forecast to be over £42bn lower (in today's prices) than expected back in October. 
In line with the fall in borrowing, government debt is also forecast to be lower throughout the forecast, with it now expected to fall below 80 per cent of GDP by 2026-27.
The Chancellor has decided to 'spend' only a minority of the improvement in the fiscal outlook on tax cuts. In 2026-27, the OBR project underlying borrowing to be £15bn lower than previously forecast, while new policies add just £3bn to borrowing.
Today's #SpringStatement comes as households face a prolonged period of high inflation. The OBR has more than doubled its forecast for inflation in Q4 2022 to 8.7% – the highest in 40 years. This means pay packets will continue to shrink, along with vital income support like UC🧵
The highest inflation in 40 years means that real household disposable income per person – a key measure of living standards – is forecast to fall faster in 2022-23 than in any other financial year on record (back to 1956-57) even after measures announced in the Spring Statement.
The current fall in real wages is now not projected to end until late 2023, and will leave average wages no higher in real terms than they were back in 2007.
Today's #SpringStatement comes as households face a prolonged period of high inflation. The OBR has more than doubled its forecast for inflation in Q4 2022 to 8.7% – the highest in 40 years. This means pay packets will continue to shrink, along with vital income support like UC.
As the chart below makes clear, real household disposable income per person – a key measure of living standards – is forecast to fall faster in 2022-23 than in any other financial year on record (back to 1956-57) even after measures announced in the Spring Statement.
The impact of inflation on day-to-day public spending is lower than expected due to the source of inflation being largely imported. Overall spending is expected to be around £5.6 billion smaller in real terms in 2026-27 than expected in autumn
In the tax pipeline, we’ve now got: a freeze to income tax thresholds, a new higher NICs threshold, higher NICs rates and lower income tax rates. Taking all of that together, there are some short run winners, but most will pay more eventually. Specifically: … 1/n
For 2022-23, those earning between around £10,000 (the current NICs threshold) and £25,000 will pay less tax on their earnings as a result of these changes. Those earning more will pay more. 2/n
By 2025-26 - after cut to basic rate income tax & thresholds have continued to be frozen - virtually all workers will be paying more tax on their earnings. (freezing thresholds for four years is set to have v. large impact, given the rise in expected inflation). 3/n
🚨 JRF responds to the #SpringStatement
The Chancellor has abandoned many to the threat of destitution, not economic security, @dminnes
🧵👇
The Chancellor has abandoned many to the threat of destitution, not economic security, @dminnes
🧵👇
✂️6⃣ "The Chancellor has acted recklessly in pressing ahead with a second real-terms cut to benefits in six months, while prioritising people on middle and higher incomes."
❌ "Changes to #NationalInsurance won’t help those who aren’t working or can’t work due to disability, illness or caring responsibilities, to an increasing risk of becoming destitute. This means they will face regularly going without absolute essentials."
📢IEA Head of Lifestyle Economics @cjsnowdon responds to #SpringStatement (1/4)
"The Chancellor has decided to alleviate the impact of price rises rather than try to fight inflation.
"The Chancellor has decided to alleviate the impact of price rises rather than try to fight inflation.
"Cuts to fuel duty and income tax are very welcome, as is raising the National Insurance threshold, but they come at the cost of yet more borrowing.
"There are no easy solutions and Sunak’s admission that the UK will pay £83 billion servicing the national debt in 2022/23 shows that there is no cheap money.
"The actions we have taken to sanction Putin's regime are not cost-free for us at home" - Rishi Sunak.
Follow this thread for video updates from the #SpringStatement
Follow this thread for video updates from the #SpringStatement
Rishi Sunak states that "disruptions to global supply chains" and the "economic response to Putin's aggression" have led to increases in projected inflation. - #SpringStatement
Read an analysis of the war's impact on the cost of living crisis here:
newstatesman.com/comment/2022/0…
Read an analysis of the war's impact on the cost of living crisis here:
newstatesman.com/comment/2022/0…
"Fuel duty will be cut not by one, not even by two but by five pence per litre"
Rishi Sunak announces cuts to fuel duty in his #SpringStatement
Rishi Sunak announces cuts to fuel duty in his #SpringStatement
Join us as we pick out the key points for small business owners and landlords from the #SpringStatement2022
Rishi Sunak will cut fuel duty by 5p per litre, biggest cut to fuel duty rates and will be in place until March 2023
VAT on energy saving materials including solar panels and heat pumps will be cut to 0% for next five years. Will not be applied immediately to Northern Ireland.
Follow our thread as we react to the Spring Statement and let you know what the latest announcements mean for entrepreneurs.
The Chancellor is cutting VAT on green-home improvements. Entrepreneurs at our Green Entrepreneurship Forum have called for this and similar at our roundtables. tenentrepreneurs.org/blog/green-ent…
The Chancellor is right to address our low rate of R&D investment when compared with other OECD countries. #SpringStatement
Multi-year vs annual pledges.
The government often announces budget increases by adding up the increases over multiple years, not the annual change as you might expect. An example 👇
fullfact.org/economy/2022-d…
The government often announces budget increases by adding up the increases over multiple years, not the annual change as you might expect. An example 👇
fullfact.org/economy/2022-d…
Don't forget inflation.
Inflation forecasts for 2022 range around 6-8%. That means any pledges to raise budgets by more than this are real-terms increases, while pledges to raise them by less than this amount to real-terms reductions.
bankofengland.co.uk/-/media/boe/fi…
Inflation forecasts for 2022 range around 6-8%. That means any pledges to raise budgets by more than this are real-terms increases, while pledges to raise them by less than this amount to real-terms reductions.
bankofengland.co.uk/-/media/boe/fi…
🔴 Tory MPs have issued a last-ditch plea to Rishi Sunak to scrap a planned National Insurance hike as the Chancellor prepares to deliver his #SpringStatement at lunchtime
Follow the latest updates live 👇
Follow the latest updates live 👇
Watch Rishi Sunak's #SpringStatement live here ⬇️
3 big announcements:
🔷 5p per litre fuel duty cut till March 2023 from 6pm tonight
🔷 Widening of the VAT relief for energy saving materials
🔷 Doubling of the Household Support Fund to £1bn
#SpringStatement Follow the latest updates here: telegraph.co.uk/politics/2022/…
🔷 5p per litre fuel duty cut till March 2023 from 6pm tonight
🔷 Widening of the VAT relief for energy saving materials
🔷 Doubling of the Household Support Fund to £1bn
#SpringStatement Follow the latest updates here: telegraph.co.uk/politics/2022/…
The UK government borrowed about £5bn more than expected in February, as higher debt interest costs offset a rise in tax revenues.
But favourable revisions to past months mean that borrowing is still on track to undershoot the OBR forecast for FY 2021-22 by about £24bn... (1/4)
But favourable revisions to past months mean that borrowing is still on track to undershoot the OBR forecast for FY 2021-22 by about £24bn... (1/4)
Looking forward, rising #inflation will keep debt servicing costs high. But OBR analysis (Box 3.2 Oct EFO) has already shown that an inflation shock is likely to reduce borrowing overall, thanks to the boost to revenues, even with much larger hikes in interest rates... (2/4)
#Inflation will surely reduce the burden of #debt relative to national income, especially with real interest rates likely to remain low - even negative - for the foreseeably future.
Indeed, debt has already fallen to 94.7% of GDP, from a recent peak of more than 100%. (3/4)
Indeed, debt has already fallen to 94.7% of GDP, from a recent peak of more than 100%. (3/4)
Our response to the #SpringStatement: there is no justification for the ongoing benefit freeze cpag.org.uk/content/spring… 1/
We are dismayed that today’s Spring Statement has not brought an end to the freeze on working age benefits, despite cross-party calls for the policy to stop. 2/
Our CEO @alisongcpag: “Struggling families are desperate for an end to the freeze on working age benefits, but this Spring Statement leaves them out in the cold once again. Already the freeze has saved the Treasury more than was ever intended...
