This week the politics shows were focused on the economy, as Chancellor Jeremy Hunt prepares to make his autumn statement next Wednesday. Hunt has signalled he may deliver tax cuts, and has said ‘everything is on the table’. Laura Kuenssberg pointed out that the tax burden is the highest it has ever been, despite the Conservatives being in power for thirteen years, and asked if Hunt regretted that situation. Hunt admitted he’d been forced to make difficult decisions because of the pandemic and subsequent high inflation, and said he believed lower taxes were essential for ‘dynamic, thriving… economies’.
Benefits cuts for people not looking for work
Hunt refused to confirm any details on which tax cuts may be happening, but he did talk about the benefits cuts he announced this week. Trevor Phillips questioned him on his party’s employment record, with fewer people at work now than in 2019. Hunt argued the pandemic was to blame, and said that unemployment was down on its level in 2010. The Chancellor said it was ‘wrong’ that half a million people sign on to benefits each year without needing to looking for jobs, and said the government would invest money into mental health support to help people back to work. Phillips drew attention to the other side of the policy; those who don’t find work may have their benefits taken away.
Reeves – People out of work because ‘NHS is not functioning properly’
In response to the government’s benefits cuts, shadow chancellor Rachel Reeves suggested to Kuenssberg that if the government was serious about getting people back to work, they needed to fix the NHS. She said people were ‘desperate to improve’ their lives but were unable to for health reasons. Reeves also mentioned the plight of many people who are already in work and claim benefits too, but still struggle to pay their rent or buy food. She confirmed that Labour would raise benefits in line with September inflation levels as usual, unlike Hunt who had previously implied the government might use the more recent lower figure.
Reeves – Inheritance tax cuts ‘an unusual way to tackle cost of living crisis’
Phillips asked Reeves about reports that the government may announce cuts to inheritance tax. Reeves disagreed with the policy, suggesting such a cut would benefit less than 4 per cent of estates. However, she said the government had raised taxes 25 times since 2019, and she had opposed Sunak when he tried to raise national insurance. Reeves told Phillips she would support tax cuts for ‘working people’ if they were affordable.
Hunt on Rwanda – ‘it is parliament who should make these decisions’
And finally, after the supreme court ruled this week that the government’s Rwanda policy is unlawful, Sunak has announced plans to present a full law to parliament to get round the supreme court’s decision. Hunt told Laura Kuenssberg the government would do ‘whatever it takes’ to put its plan in motion. Kuenssberg asked the Chancellor if that meant possibly leaving the European Convention on Human Rights, as wished for by some on the right of the party. Hunt said the government didn’t ‘want to do that’, and they didn’t believe it would be necessary, but implied it would be an option if other measures fail.
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