Tory Chancellor Hunt declared that the entire cost of British capitalism’s crisis is to be dumped onto the backs of the working class yesterday.
Hunt scrapped his predecessor Kwasi Kwarteng’s and Prime Minister Truss’s mini-budget in its entirety.
He announced that the Energy Price Guarantee, which caps energy bills at £2,500, will end in April next year and not carry on until 2024 as previously pledged.
Appearing before the press yesterday morning, Hunt said his ‘first priority’ is to ‘calm and reassure the markets’.
The basic rate of income tax will remain at 20p indefinitely, instead of being reduced to 19p, Hunt announced.
Saying that he has a ‘commitment to sustainable public finances’ he said that the cuts he was announcing would ‘raise £32 billion every year’.
He threatened huge public spending cuts, saying: ‘The UK will always pay its way and this government will always ensure it does,’ adding: ‘Governments can’t eliminate volatility in markets’, and: ‘We must make difficult decisions on tax and spending’
Hunt insisted that every government department would have to make cuts.
‘All departments will need to redouble their efforts to find savings and some areas of spending will need to be cut,’ he said.
TUC General Secretary Frances O’Grady responded: ‘We are now on the brink of a deep and damaging recession that threatens millions of jobs. But the latest Conservative Chancellor still has the same basic approach that got us into this mess.
‘The Chancellor should have announced a boost to Universal Credit and pensions, and a comprehensive plan to get wages rising faster for everyone. And he should have announced a much higher windfall tax on oil and gas giants.
‘Families and businesses now face months of worry. There is going to be less help with bills – but no-one knows who will lose out, by how much, or whether there will finally be a programme to fix Britain’s cold and draughty homes. This is not the reassurance working families need.’
Unite general secretary, Sharon Graham said: ‘For all the announced U-turns, it is really clear that this Chancellor is now preparing the country for another round of austerity.
‘There is no suggestion here that profiteering energy companies should pay more or that city bankers should not get unfettered bonuses. When he talks about “the difficult decisions that lie ahead” this is code for “workers and communities will pay”.’
Unison general secretary Christina McAnea said: ‘A government that dumps virtually its entire economic slate in the space of a month simply cannot be trusted.
‘Liz Truss promised again and again to shield people from rocketing energy bills, but even that help now lies in tatters. Struggling families will be aghast.
‘Threatened spending cuts mean essential services, key workers and the public will pay a heavy price for the government’s reckless, and wholly unnecessary, gamble.
‘The current crisis is entirely of the government’s making. The UK’s reputation on the international stage has been trashed and families’ budgets squeezed like never before.
‘This sorry state of affairs must come to an end. The lame duck Prime Minister has to step aside and an election called right away to put the country out of its misery. That’s the only way to get the economy back on track.’
Dave Wiltshire, National Secretary of the All Trades Unions Alliance, said: ‘This Tory government has made it absolutely clear that it intends to make the working class pay for the entire capitalist crisis.
‘The TUC must call an immediate general strike to bring the Tories down and kick them out now.’