Millions of Britons braced for Hunt’s ‘horrible decisions’

Jeremy Hunt warned he will have to make ‘horrible’ decisions when he unveils his crunch Autumn statement on Thursday. Branding himself as ‘Scrooge’ trying to save family Christmases, the Chancellor confessed ‘everyone will be paying more tax’.Mr Hunt vowed this week’s fiscal showpiece is ‘not just going to be bad news’, stressing he is keen to show the British people ‘the way through’ the ‘difficult’ circumstances at hand.But he is expected to reveal a raft of unpopular measures that will hit families across the UK – including spending cuts of about £35 billion and plans to raise £20 billion in tax.It comes as the UK faces major economic challenges, with soaring living costs and a warning from the Bank of England that the country is facing its longest recession since records began.It also follows the mini-budget of former Prime Minister Liz Truss and her then chancellor, Kwasi Kwarteng, which led to market turmoil and a jump in government borrowing costs. Many of those policies have since been reversed by Mr Hunt.Independent forecasts are understood to have identified a gap of around £55 billion in the public finances – although some economists have questioned the size of the ‘black hole’.One measure expected to be announced by the Chancellor is the freezing of income tax thresholds until 2028, a move some have claimed is a ‘stealth tax’ because wage inflation will drag many more people into higher rate bands.Speaking on Sky News’ Ridge on Sunday Mr Hunt said he “will be asking everyone for sacrifices” but recognises there is “only so much we can ask” from people on the lowest incomes.’We are all going to be paying a bit more tax, I’m afraid but it’s not just going to be bad news. Mr Hunt vowed this week’s fiscal showpiece is ‘not just going to be bad news’ (Image: Getty)’I think what people recognise is that if you want to give people confidence about the future, you have to be honest about the present. And you have to have a plan.’This will be a plan to help bring down inflation, help control high energy prices and also get our way back to growing healthily, which is what we need so much.’Asked if there would be a return to austerity he said there are going to be ‘very difficult decisions’.But he also hinted that NHS funding could be safe from cross-government cuts.He said the under-pressure health service was ‘part of the solution’ to getting the economy back to growth by reducing the number of people off on long-term sick leave.He also hinted that the triple Lock on pensions could be reinstated as pointed out ‘there is a lot of pensioner poverty.’This would mark massive success for the Daily Express which has campaigned relentlessly for the manifesto pledge to be guaranteed.Some Conservatives MPs have warned against increasing taxes, with former party leader Iain Duncan Smith telling Sky News it could lead to a “deeper” recession.Addressing the concerns of his colleagues, Mr Hunt said the previous leadership had tried that approach, “in other words a plan that doesn’t show how, in the long run, we can afford it”.”We have tried that, we saw it didn’t work.”Simon Clarke, the former levelling up secretary under Liz Truss, told Sophy Ridge on Sunday he would rather see public spending cuts than tax rises in the fiscal statement.He said: “I would strongly urge that the great balance of this statement should come from spending reductions because I really do think that there is an issue with our raising the burden of taxation on Britain at this time.”The Chancellor also made clear that the support people were receiving for energy bills would come to an end for many.The energy price guarantee had been due to last for two years, but after taking over from Mr Kwarteng, Mr Hunt announced it would expire in April.Speaking to the BBC, he said he would set out what further support would be given to those struggling on Thursday.However, he emphasised that future help had to be “done on a sustainable basis” and there would have to be “some constraints”.Asked if he was ditching the energy plan set out by former prime minister Boris Johnson, the chancellor said he admired Mr Johnson’s “big visions” but added there were elements of “cakeism” – a reference to the phrase: “Have your cake and eat it.”He said he wanted to “deliver the exciting things he outlined” but that actions had to be credible and affordable.The Chancellor also insisted he does not accept the premise that ‘Brexit will make us poorer’.He said he believes the UK can make a success of leaving the EU.Mr Hunt told the BBC’s Sunday with Laura Kuenssberg: ‘I believe we can make a tremendous success of it, but it’s not going to happen automatically.’What you’ll hear on Thursday is some of the ways that I think we can make a success of it.’Asked if he denies Brexit has slowed economic growth at home, Mr Hunt said: ‘What I don’t accept is the premise that Brexit will make us poorer.’I don’t deny there are costs to a decision like Brexit, but there are also opportunities, and you have to see it in the round.’Literally within months of formally leaving the EU we had a once-in-a-century pandemic, which has meant the process of outlining what the opportunities are has taken longer, but I think we need to do that now.’He said he does not think Brexit is the ‘biggest issue’ with the UK’s economic performance, adding: ‘I think it’s much more to do with other factors in the labour market.’Labour’s shadow chancellor Rachel Reeves said the chancellor could still make “fair choices” in the autumn statement that do not place the burden on the public by closing tax loopholes and backdating the windfall tax on energy companies’ profits to January and extending it by two years.She said the windfall tax extension could raise an additional £50billion.