More people are expected to not be in work (Picture:EPA)
Unemployment is expected to rise by 1.3% to nearly 5%, Jeremy Hunt has revealed.
The rate of people not in work will likely jump from 3.6% to 4.9% in 2024, before falling back to 4.1%.
The Chancellor promised to ‘tackle the cost-of-living crisis’ and ‘rebuild our economy’ as he set out plans for tax rises and spending cuts in the Commons.
He said there would be a ‘shallower downturn’ as a result of his measures but the Office for Budget Responsibility (OBR) believed the economy was ‘now in recession’.
He told MPs his three priorities were ‘stability, growth and public services’.
‘The OBR says higher energy prices explain the majority of the downward revision in cumulative growth since March,’ he said.
‘They also expect a rise in unemployment from 3.6% today to 4.9% in 2024 before falling to 4.1%.’
Mr Hunt is setting out a package of £30 billion of spending cuts and £24 billion in tax rises over the next five years.
His package is in stark contrast to his predecessor Kwasi Kwarteng’s ill-fated plan for £45 billion of tax cuts, less than two months ago, which spooked the markets, pushed up the cost of borrowing and contributed to the downfall of Liz Truss’ short-lived administration.
Mr Hunt said: ‘I understand the motivation of my predecessor’s mini-budget and he was correct to identify growth as a priority. But unfunded tax cuts are as risky as unfunded spending.’
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The rate of people not in work will likely jump from 3.6% to 4.9% in 2024.
