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Budget |
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Sunak delivers spring statement |
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Chancellor Rishi Sunak delivered a spring statement to the Commons on Wednesday, amid warnings that living standards are “set for a historic fall” amid rising inflation and uncertainty about the impact of Russia’s invasion of Ukraine (The Guardian). Sunak said the Health and Social Care Levy announced last September would go ahead because “the money is needed now”; but then announced a 1p cut in income tax in two-years’ time. Economic experts said this would shift the cost of paying for health and care towards people in employment and away from those with unearned income; which the Institute of Fiscal Studies described as “less equitable and less efficient.”
Sunak told MPs that the Office for Budget responsibility expects inflation to reach 7.2% this year. In a pre-spring statement briefing, the IFS said rising inflation will be bad news for the NHS, because it will erode the value of the spending settlement in the October budget, which was made in cash terms. It will also put pressure on wages, at a time when the health service has 110,000 vacancies. Meanwhile, public health experts noted that Sunak’s decision to leave benefits untouched and to do little to avert the “cost of living crisis” is likely to push more people into poverty and undermine prevention efforts. |
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