Today’s news summary – Paper Talk: Tough Week for Tories as Britain Slides into recession & By-election Humiliation
Friday’s front pages went to print before confirmation of Labour’s by-election wins in Kingswood and Wellingborough. But it doesn’t make it easy reading for the government as most papers carry the news that Britain is now in a recession. It will be days of headaches for Tories as the news keeps getting worse – and with a general election on the horizon, it’s unclear how the party plans to turn it around.
Britain slides into recession
The Daily Mail headlines emphasise the Chancellor’s push for tax cuts, urging him to provide a boost to the economy. Its headline reads: “Now be bold and go for big tax cuts, Mr Hunt.” It reports the chancellor was last night being urged not to drop his plans for tax cuts, despite the bad economic news.
Following GDP figures revealing consecutive quarters of economic decline, the Daily Mirror labels the situation a “RISHession.” It adds that the prime minister’s promise to “kickstart” the economy has been left in “tatters.”
An insider from the Treasury, speaking to the i newspaper, attributes the recession to high interest rates necessary to combat inflation.
The Financial Times notes the challenging conditions this data presents for Jeremy Hunt ahead of the upcoming Budget. The paper’s lead story notes that the prime minister started the year with the promise to boost the economy. It adds that while it may be described as “technical” and “shallow”, the name of “Rishi’s recession” is likely to stick in the run-up to the next general election.
According to the Guardian, Hunt now has around £13bn of fiscal headroom, £8bn less than previously anticipated, prompting concerns from the Unite union about potential austerity measures. The paper says “Rishi Sunak has been warned against launching a fresh austerity drive,” adding that Treasury sources have said Jeremy Hunt is considering “a fresh squeeze on public spending” to finance pre-election tax cuts
While reports suggest the chancellor has deferred plans for a 2p income tax cut, the Daily Telegraph editorial insists on significant tax reductions to alleviate disincentives to work.
Contrarily, the Daily Express offers a cautious perspective, warning against excessive tax cuts that could hinder the fight against inflation.