UK finance minister announces tax hikes and spending cuts, says country is in recession

Finance Minister Jeremy Hunt, in his hotly anticipated inaugural Autumn Statement, unveiled a sweeping £55 billion ($66 billion) fiscal plan.

The U.K. government unveiled a plan to plug a gaping hole in the public finances and restore Britain's economic credibility as it teeters on recession.

Spending cuts and tax hikes were outlined in the Autumn Statement by the finance minister.

The measures included a six-year freeze on income tax thresholds and a lowering of the top rate of income tax.

Hunt said that unfunded tax cuts are as risky as unfunded spending.

The measures will assure markets that the government and the Bank of England are working in lockstep.

Fiscal and monetary policy needs to work together. The government and the bank are working together. Giving the world confidence in our ability to pay our debts is what it means.

Millions of Britons will face increased financial hardship as a result of the measures.

The plan was needed to limit inflation and recover the U.K.'s reputation, according to Hunt.

Hunt said that they need to continue a relentless fight to bring inflation down.

A 10% increase in the state pension, benefits and tax credits was one of the measures announced.

The annual exception for capital gains tax will be slashed over the next two years.

The energy industry will face an expanded windfall tax.

Thursday's statement was accompanied by a set of projections from the U.K.'s independent Office for Budget Responsibility.

According to the projections, the U.K. is in a recession, but that the government's plan will ensure the downturn is less severe.

The U.K. has a new strategy that sets the tone for the Prime Minister as he presides over an era of fiscal austerity.

Hunt was installed last month to recover the U.K.'s credibility after the mini-budget of unfunded tax cuts unleashed market chaos and emergency intervention.

After months of political turmoil, Hunt was kept on by Sunak in order to make sure there was stability.

The new plans will leave the U.K. worse off than it was earlier this year, according to the Shadow Finance Minister.

Three prime ministers, four chancellors and four budgets are on the horizon. Where do we go? We started the year in a better place.

The U.K. is the only G7 country that hasn't returned to its pre-pandemic size.

The Bank of England has warned that the country is in a recession.

The official data shows that the economy shrank in the third quarter. The U.K. is currently in a technical recession.