The Chancellor's response to the ONS Quarterly National
Accounts.
Chancellor of the Exchequer said:
“The medium-term outlook for the UK economy is far more
optimistic than these numbers suggest. We’ve seen inflation fall
again this week, and the OBR expects the measures in the
Autumn Statement, including the largest business tax cut in
modern British history and tax cuts for 29 million working
people, will deliver the largest boost to potential growth
on record.”
Notes to editors
- The combined impact of the Autumn and Spring policy packages
is a permanent 0.5% increase in the level of potential output by
the end of the OBR’s forecast – equivalent to the aerospace
sector.
- And the OBR confirms that our Autumn Statement package does
not jeopardise our progress in controlling inflation while
simultaneously growing the economy. In the final year of the
forecast our measures reduce the overall tax burden by 0.7% of
GDP and get 78,000 extra people into work.
- To reward work, we have cut National Insurance for 29 million
people worth £9 billion per year, worth £450 for the average
employee on £35,400 and £350 for the average self-employed person
on £28,200.
- Full expensing is the biggest business tax cut in modern
British history worth over £50 billion over the next five years –
helping companies to invest for less.
- Since 2010, the UK has grown faster than France, Japan and
Italy, and Germany (end of Q4 2009 – end of Q3 2023).
- Recent figures have shown that by 2021 the UK had recovered
faster from the pandemic than France, Germany, and Japan (end of
Q4 2019 – end of Q4 2021).
MP, Labour’s Shadow
Chancellor of the Exchequer, responding to the latest
GDP figures, said:
“Rishi Sunak is a prime minister whose legacy is one of failure.
He failed to beat , he failed to cut waiting lists, he failed to stop the
boats and now he has failed to grow the economy.
“Thirteen years of economic failure under the Conservatives have
left working people worse off, with higher bills, higher
mortgages and higher prices in the shops.
“It’s time for change. The Labour Party, led by , has a long-term plan to grow
the economy and make working people better off.”
