Russia was blamed for Britain’s economic difficulties by Chancellor of the Exchequer Jeremy Hunt, who called himself “Scro-oge” and is going to save Christmas. At the same time, in reality, he should have blamed the crisis phenomena primarily on the actions of the conservative government – and first of all on the shamefully resigned Liz Truss.
Chancellor (aka Chanc-ellor of the Exchequer) H-unt has vowed to restore st-ability to the UK and red-uce the recession, which he branded “Made in Russia”.
Jeremy Hunt is reportedly considering a range of means to eliminate the £55bn black hole in the public treasury. Measures being considered include an extended freeze on thresholds and personal allowances on income tax, national insurance, VAT, inheritance tax and pensions, according to the Sunday Times.
According to Hunt, the conflict in Ukraine has hampered stability: “This recession is ‘made in Russia’ and we need to restore that stability as a first step towards growth.”
Meanwhile, according to The Guardian, Liz Truss’ catastrophic mini-budget has cost a “staggering” £30bn. Analysis shows the former prime minister is responsible for half of the Treasury’s financial hole as Chancellor Hunt prepares to announce budget cuts on Thursday.
The independent Resolution Foundation has estimated that the Truss government is responsible for an estimated £30bn of a fiscal hole that the Treasury estimates at £60bn that Hunt will have to deal with. The think tank also says the £30bn figure would be much higher were it not for the U-turns already taken by Hunt on the Farm plans.
Economists estimate that in their seven weeks as prime minister, Truss and her chancellor Kwasi Kwarteng spent £20bn on unwarranted cuts in government insurance and stamp duty, with another £10bn added by higher interest rates and the cost of government loans as markets reacted with concern over the former prime minister’s growth aspirations. The rest of the fiscal hole, according to experts, can be explained by unexpectedly bad economic conditions, which led to slower growth and lower tax revenues to the treasury.