Budget 2024 - live: Hunt and Starmer ‘in conspiracy of silence’ as Britain faces hardest five years since WWII

‘We could be in for a rude awakening’ after election, says head of top economic think tank

Jeremy Hunt forced to defend Budget impact on low-income earners

Both the Conservatives and Labour are engaged in a “conspiracy of silence” about what will happen to the public finances after the election, the head of a leading economic think tank has said.

Responding to the spring Budget, Paul Johnson, director of the Institute for Fiscal Studies, said both parties were not being straight about the “scale” of the trade-offs they will face after voters go to the polls.

“They, and we, could be in for a rude awakening when those choices become unavoidable,” he told a press conference on Thursday.

Mr Johnson also warned that the UK was facing its most difficult period financially since the Second World War.

“The combination of high debt interest payments and low forecast nominal growth means that the next parliament could well prove to be the most difficult of any in 80 years for a chancellor wanting to bring debt down,” he said.

Key points

• ‘Conspiracy of silence’ as UK faces most difficult 5 years since WWII
• Listen: Chancellor branded ‘fiscal drag queen’ in heated BBC clash
• Wages stagnant at 2008 levels, think tank says
• Spring Budget 2024: The key takeaways

[6 March 2024 17:41 · Tara Cobham]

Sunak recused from policy talks on non-dom status to avoid conflict of interest

Rishi Sunak was recused from policy talks on the scrapping of the non-dom tax status – previously enjoyed by his wife – to avoid a “potential or perceived” conflict of interest, Downing Street has said.

Work on the measure was delegated to Deputy Prime Minister Oliver Dowden to carry out with the Chancellor, it is understood.

Jeremy Hunt announced in the spring Budget that the status for wealthy overseas UK residents would be abolished, putting the £2.7 billion a year raised as a result towards tax cuts.

Nina Lloyd reports:

[6 March 2024 17:41 · Tara Cobham]

Braverman regrets there was no cut to income tax in Budget

Former home secretary Suella Braverman said she regrets there was no cut to income tax in the Chancellor’s Budget because this would have helped a “broader range of taxpayer”.

Ms Braverman told the Commons: “My preference would have been a 2p cut off the basic rate of income tax and an increase in the personal allowance and a raising of the income tax threshold – to properly fix a tax regime, which has become, I’m sad to say, a disincentive to work and endeavour in too many cases.

“The cut of 2p off the basic rate and the increase in personal allowance, say from £12,500 where it currently stands to £20,000 or even something like £15,000 or £16,000, would have helped poorer households and lifted about 20% of all taxpayers out of tax all together.

“Cutting income tax rather than national insurance helps a broader range of taxpayer, including workers, savers and pensioners.”

The Conservative MP for Fareham added: “I do regret that income tax was not chosen as the tax to cut today over national insurance because pensioners have lost out as a result.”

Former home secretary Suella Braverman with prime minister Rishi Sunak (WPA Rota)

[6 March 2024 17:38 · Tara Cobham]

Hunt’s Budget deemed ‘betrayal of public services’ by Scottish Finance Secretary

Scotland’s Finance Secretary has blasted the Chancellor for a “betrayal of public services”, after he unveiled a Budget that included another cut to national insurance.

Jeremy Hunt told workers the levy will be reduced by a further 2p from April, following a similar reduction in January.

The two cuts combined will leave 2.4 million workers across Scotland an average of £900 a year better off, the UK Treasury said.

Katrine Bussey reports:

[6 March 2024 17:37 · Tara Cobham]

Science Secretary falsely suggesting academic supported Hamas cost taxpayer £15,000

It cost taxpayers £15,000 to cover damages and legal fees after Science Secretary Michelle Donelan falsely suggested an academic supported Hamas, the Department for Science, Innovation and Technology said, adding the sum was paid “without admitting any liability”.