Today’s news summary – Paper Talk: ‘Pro-rich tax giveaway’ & ‘Snap Spring election’
Thursday’s newspapers cover the reaction to the Autumn Statement. Many of the right-leaning papers celebrate the chancellor’s budget, whilst the left-leaning newspapers call the measures a ‘pro-rich tax giveaway’ and suggest the working people will be left to pay for it.
Several papers suggest the measures are a political ploy for an expected snap spring general election.
Autumn Statement reaction
The measures announced by Chancellor Jeremy Hunt are a hit for the Daily Mail and the Daily Telegraph both hail what they call “the biggest tax cuts since the 1980s.”
The Mail says the chancellor “defied gloomy predictions” by cutting 2p off National Insurance which it believes is “setting the scene for a tax and spend battle with Labour at the next election.”
The Sun celebrates the measures with a champagne cork popping on the front page. The Daily Mirror says the Autumn Statement is less about fizz and more about “swizz”. It says millions of people will be worse off despite paying less NI. It points to economic growth forecasts that have been halved and predictions that inflation will fall more slowly than previously expected.
The Telegraph says the reaction of Tory MPs was to “cheer the good start” and to call for more before the next election. The paper’s editor says cutting NI was the rabbit pulled from the hat – as Hunt tried to “cast a new spell over the electorate.” She also says the mini-budget was impressive in the party’s attempt to fight Labour at the next election.
The Times declares “Hunt eases tax burden” – in contrast to the Financial Times which says “Tax burden suggest despite Hunt cuts.”
‘Ugly future for public services’
The FT says that personal and business taxes have been reduced but overall taxation is still rising to a post-WW2 high. It says the OBR “shed a harsh light” on Hunt’s plans, saying it would be a “modest boost to growth” and see tax burden rise for the next five years.
The Economist notes offering tax cuts is “an ugly future for public services.” The paper calls the cuts a “pre-election giveaway” and questions Hunt’s assertion that lower inflation has given him the space to cut taxes, arguing that space has actually come from higher inflation.
The Guardian also links the statement’s measures to the upcoming election. The paper speculates there will be a snap general election in the spring. It agrees with the Economist that the “bigger than expected” tax cuts will be paid for by a “fresh squeeze on public spending.”
The paper sees the rise in state benefits and pensions as a sign the government is trying to win votes. The paper’s leader article says “this Tory pro-rich tax giveaway is paid for by bankrupting the state”.
The i newspaper points out the tax burden is still forecast to grow to the highest level seen since WW2. The paper says the freezing of income tax thresholds means millions more people will pay higher rates as salaries rise with inflation.