Well, well, well. It’s day three of the Budget and it appears that Rachel Reeves’s fiscal statement has begun to rather quickly unravel. Appearing on Sky News this morning was Chief Secretary to the Treasury. In a rather awkward interview, Darren Jones faced a grilling from Sky’s Wilfred Frost on just how much people in the UK will be hit by newly-announced budgetary measures and specifically on whether this Budget really does protect working people after all. It’s quite the watch…
WF: Yesterday the Chancellor said wage increases might be slightly less than they otherwise would have been. De facto that is clearly a hit on working people. Paul Johnson of the Institute for Fiscal Studies says the continued pretence that these changes will not affect working people risks further undermining public trust.
DJ: I’m not giving any pretence about anything. All I’m telling you is that the Treasury, which sets tax rates, is not increasing rates of tax on working people. That was the promise we’ve made, that was the promise that we’ve delivered…
WF: Does it hit working people?
DJ: We completely respect the OBR’s assessment.
WF: Does it hit working people?
DJ: So we recognise that the OBR has predicted that inflation…
WF: Does it hit working people?
DJ: I’m answering your question. The OBR has predicted that in future years, wage growth may become lower as a consequence of employers having to pay more…
WF: So it hits working people?
DJ: Yes, but…
Eureka! And there it is. Watch the clip here…
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