Staffs leader focused on economy as Hunt saves billions
THE leader of Staffordshire County Council has said the authority remains focused on growing the county’s economy as he reacted to yesterday’s Autumn Statement by Chancellor Jeremy Hunt
Mr Hunt announced plans to save billions of pounds to help balance the country’s books and said public services would grow more slowly.
Staffordshire leader Councillor Alan White said: “We remain a stable, well-run authority with a focus on growing Staffordshire’s economy through investment in education and training and creating the physical and digital infrastructure which allows businesses to prosper.
“We will have to study the detail of today’s announcement carefully to understand how it affects us and our budget planning for 2023/24 and beyond.
“The effects of inflation and the rise in energy prices are also adding to our daily costs and still, each year, we spend approximately two-thirds of our budget on caring for vulnerable children and the needs of increasing numbers of elderly people.
“Following today’s announcement on social care and its interim funding for two years, the biggest single issue facing this authority – and many others across the country – remains the need for a sustainable long-term national solution for funding adult social care.”
JEREMY Hunt promised to “tackle the costof-living crisis” and “rebuild our economy” as he set out plans for tax rises and spending cuts.
The Chancellor 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”, as he delivered his autumn statement.
Mr Hunt said.“the OBR forecast the UK’S inflation rate to be 9.1% this year and 7.4% next year,” he said.
“They confirm that our actions today help inflation to fall sharply from the middle of next year.
“They also judge that the UK, like other countries, is now in recession. Overall this year, the economy is still forecast to grow by 4.2%.”
Mr Hunt was 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.”
Mr Hunt said repairing the nation’s finances involved “taking difficult decisions”.
He told MPS: “Anyone who says there are easy answers is not being straight with the British people.
“Some argue for spending cuts, but that would not be compatible with high-quality public services.
“Others say savings should be found by increasing taxes, but Conservatives know that high tax economies damage enterprise and erode freedom.
“We want low taxes and sound money. “But sound money has to come first because inflation eats away at the pound in people’s pockets even more insidiously than taxes.
“So, with just under half of the £55 billion consolidation coming from tax, and just over half from spending, this is a balanced plan for stability.”