British Chancellor of the Exchequer Rishi Sunak's autumn budget puts the UK on track for a "new high-tax economy" that will leave living standards squeezed as the country eases out of the pandemic, analysts said on Thursday.
There were also criticisms over Mr Sunak’s decision to hold or cut taxes on fuel and flying just days before the UK will host 197 countries for key climate change talks at the Cop26 environment summit in Glasgow.
The budget will leave the overall tax burden at its highest level in 70 years, according to the Office for Budget Responsibility, while The Resolution Foundation said this will amount to a £3,000 increase per household since Boris Johnson became prime minister, with the poorest households hit the hardest.
The think tank said this burden combined with higher growth, inflation and public spending than previously expected could see Britain "set for a flat recovery for household living standards".
“The chancellor set the stage for a new high tax economy – rather than the high wage economy pledged by the prime minister, or the low tax one favoured by many Conservative MPs,” the Resolution Foundation said.
Meanwhile, Mr Sunak was heavily criticised for wanting to encourage more people to take short-haul flights within the UK by reducing air passenger duty for those journeys to £6.50 in a boost to nine million domestic passengers.
The policies angered environmental campaigners pushing the UK to accelerate its transition to net-zero emissions, and threaten to undermine the UK's efforts to show leadership on tackling climate change before the Cop26 summit.
“Cutting air passenger duty on domestic flights is an astonishing move that completely flies in the face of the climate emergency. The chancellor should be making it cheaper for people to travel around the country by train, not carbon-guzzling planes,” said Mike Childs, head of policy at the non-profit Friends of the Earth.
Shadow Chancellor Rachel Reeves said announcements to cut air passenger duty are “astonishing”.
“We wouldn’t have gone ahead with that cut,” she told BBC Radio 4’s Today programme.
“I find it astonishing that, the week before Cop26, where we are supposed to be showing global leadership, we have cut air passenger duty on domestic flights.
“We should be encouraging people to use our train network for those journeys.”
To offset any increased carbon emissions, the Treasury also said it would increase fuel duty for long-haul flights. Those flying up to 2,000 miles (3,200 kilometres) in economy class will pay £13 per flight, rising to £87 for those traveling 2,000 to 5,000 miles.
Above 5,000 miles, the duty will be £91. A Treasury official said the effect of the changes to the tax would be carbon neutral when the cut to levies for domestic flights is balanced against the rise in ones for long-haul journeys.
The chancellor also confirmed he would freeze road fuel duty for the 12th year in a row, because fuel prices are at their highest level in eight years.
The policies come shortly after the Treasury was criticised by its advisers, the UK Climate Change Committee, for failing to have a clear plan on how it would use taxes to pay for the transition. In particular, it said it was unclear how the Treasury would fill a revenue hole left by a switch to electric vehicles.
With the UK economy on a stronger footing than expected with 6.5 per cent of growth expected this year rather than 4 per cent, the chancellor set out £150 billion of departmental spending as well as help for people on low incomes to tackle the rising cost of living.
In an attempt to reassure nervous Conservatives, Mr Sunak told the Commons that by the next election “I want taxes to be going down not up".
This budget was perhaps more notable for what the chancellor didn’t do rather than what he did,” said Neil Shearing, group chief economist at Capital Economics.
“The OBR handed Rishi Sunak a significant upgrade to its forecasts for the public finances but, while the Chancellor spent some of the windfall a substantial amount was saved – allowing the Chancellor to start building a war chest that could be deployed ahead of the next election.”
Mr Sunak was also criticised for his decision to reinstate a commitment to spend 0.7 per cent of national income on overseas aid by 2024/25, in line with other Group of Seven countries.
He had cut it to 0.5 per cent last year, during the first stages of the pandemic. That led to criticism from poor nations and his own party that the UK was failing to show international leadership on helping the world cut emissions.
Nick Dearden, director of the non-profit Global Justice Now, said the budget would undermine trust with developing countries because it “locked in” another three years of overseas aids cuts.
“If the Chancellor’s failure to give the climate more than a passing mention in today’s inward-looking Budget is anything to go by, there will be little trust or faith in the UK's ability to deliver on its pledges at COP26,” he said.
Meanwhile, analysts feared the temporary business rates discount of 50 per cent for shops, restaurants and gyms, which were all badly hit by the pandemic, could actually cost some independent retailers more.
While the British Independent Retailers Association said it was initially 'pleased' the chancellor had addressed business rates and some of the other burdens faced by indie retailers in his Autumn Statement, Andrew Goodacre, Bira chief executive, said: "The devil is in the detail."
"The rates bill for this year was reduced to 25 per cent (of normal levels) in response to Covid," he said. "Therefore reducing rates by 50 per cent next year is in fact a 100 per cent increase on what businesses are actually paying. On top of everything else, this will be a challenge."
Helen Dickinson, chief executive of the British Retail Consortium, said the budget did not do enough to reduce the burden of costs bearing down on shops, high streets and communities.
“This budget is a missed opportunity for retail and the three million people who work in the industry, and it prevents retail from maximising its contribution to the government’s levelling up agenda," Ms Dickinson said.
“While the Government’s 50 per cent bridging relief for 2022/23 may prove to be beneficial for the smallest businesses, it will do little to support the businesses that pay two-thirds of retail business rates and employ 1.5 million people.
"With no reduction in the burden, this will lead to the unnecessary loss of shops and jobs and fails to incentivise investment in all parts of the country. This is bad news for every member of the public who wants a vibrant high street in their local community, with retail at its heart.”
RESULT
Los Angeles Galaxy 2 Manchester United 5
Galaxy: Dos Santos (79', 88')
United: Rashford (2', 20'), Fellaini (26'), Mkhitaryan (67'), Martial (72')
Defending champions
World Series: South Africa
Women’s World Series: Australia
Gulf Men’s League: Dubai Exiles
Gulf Men’s Social: Mediclinic Barrelhouse Warriors
Gulf Vets: Jebel Ali Dragons Veterans
Gulf Women: Dubai Sports City Eagles
Gulf Under 19: British School Al Khubairat
Gulf Under 19 Girls: Dubai Exiles
UAE National Schools: Al Safa School
International Invitational: Speranza 22
International Vets: Joining Jack
The years Ramadan fell in May
MATCH INFO
UAE Division 1
Abu Dhabi Harlequins 12-24 Abu Dhabi Saracens
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David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
UAE currency: the story behind the money in your pockets
Mubadala World Tennis Championship 2018 schedule
Thursday December 27
Men's quarter-finals
Kevin Anderson v Hyeon Chung 4pm
Dominic Thiem v Karen Khachanov 6pm
Women's exhibition
Serena Williams v Venus Williams 8pm
Friday December 28
5th place play-off 3pm
Men's semi-finals
Rafael Nadal v Anderson/Chung 5pm
Novak Djokovic v Thiem/Khachanov 7pm
Saturday December 29
3rd place play-off 5pm
Men's final 7pm
Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
UAE currency: the story behind the money in your pockets
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WOMAN AND CHILD
Director: Saeed Roustaee
Starring: Parinaz Izadyar, Payman Maadi
Rating: 4/5
Results
4pm: Al Bastakiya – Listed (TB) $150,000 (Dirt) 1,900m; Winner: Panadol, Mickael Barzalona (jockey), Salem bin Ghadayer (trainer)
4.35pm: Dubai City Of Gold – Group 2 (TB) $228,000 (Turf) 2,410m; Winner: Walton Street, William Buick, Charlie Appleby
5.10pm: Mahab Al Shimaal – Group 3 (TB) $228,000 (D) 1,200m; Winner: Canvassed, Pat Dobbs, Doug Watson
5.45pm: Burj Nahaar – Group 3 (TB) $228,000 (D) 1,600m; Winner: Midnight Sands, Pat Dobbs, Doug Watson
6.20pm: Jebel Hatta – Group 1 (TB) $260,000 (T) 1,800m; Winner: Lord Glitters, Daniel Tudhope, David O’Meara
6.55pm: Al Maktoum Challenge Round-1 – Group 1 (TB) $390,000 (D) 2,000m; Winner: Salute The Soldier, Adrie de Vries, Fawzi Nass
7.30pm: Nad Al Sheba – Group 3 (TB) $228,000 (T) 1,200m; Winner: Final Song, Frankie Dettori, Saeed bin Suroor
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Killing of Qassem Suleimani
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
SPECS
%3Cp%3E%3Cstrong%3EEngine%3C%2Fstrong%3E%3A%202-litre%20direct%20injection%20turbo%20%0D%3Cbr%3E%3Cstrong%3ETransmission%3C%2Fstrong%3E%3A%207-speed%20automatic%20%0D%3Cbr%3E%3Cstrong%3EPower%3C%2Fstrong%3E%3A%20261hp%20%0D%3Cbr%3E%3Cstrong%3ETorque%3C%2Fstrong%3E%3A%20400Nm%20%0D%3Cbr%3E%3Cstrong%3EPrice%3C%2Fstrong%3E%3A%20From%20Dh134%2C999%26nbsp%3B%3C%2Fp%3E%0A
Other key dates
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Finals draw: December 2
-
Finals (including semi-finals and third-placed game): June 5–9, 2019
-
Euro 2020 play-off draw: November 22, 2019
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Euro 2020 play-offs: March 26–31, 2020
Top New Zealand cop on policing the virtual world
New Zealand police began closer scrutiny of social media and online communities after the attacks on two mosques in March, the country's top officer said.
The killing of 51 people in Christchurch and wounding of more than 40 others shocked the world. Brenton Tarrant, a suspected white supremacist, was accused of the killings. His trial is ongoing and he denies the charges.
Mike Bush, commissioner of New Zealand Police, said officers looked closely at how they monitored social media in the wake of the tragedy to see if lessons could be learned.
“We decided that it was fit for purpose but we need to deepen it in terms of community relationships, extending them not only with the traditional community but the virtual one as well," he told The National.
"We want to get ahead of attacks like we suffered in New Zealand so we have to challenge ourselves to be better."
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Nick's journey in numbers
Countries so far: 85
Flights: 149
Steps: 3.78 million
Calories: 220,000
Floors climbed: 2,000
Donations: GPB37,300
Prostate checks: 5
Blisters: 15
Bumps on the head: 2
Dog bites: 1
Profile of RentSher
Started: October 2015 in India, November 2016 in UAE
Founders: Harsh Dhand; Vaibhav and Purvashi Doshi
Based: Bangalore, India and Dubai, UAE
Sector: Online rental marketplace
Size: 40 employees
Investment: $2 million
The rules of the road keeping cyclists safe
Cyclists must wear a helmet, arm and knee pads
Have a white front-light and a back red-light on their bike
They must place a number plate with reflective light to the back of the bike to alert road-users
Avoid carrying weights that could cause the bike to lose balance
They must cycle on designated lanes and areas and ride safe on pavements to avoid bumping into pedestrians
25%20Days%20to%20Aden
%3Cp%3EAuthor%3A%20Michael%20Knights%3C%2Fp%3E%0A%3Cp%3EPages%3A%20256%3C%2Fp%3E%0A%3Cp%3EAvailable%3A%20January%2026%3C%2Fp%3E%0A
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
Killing of Qassem Suleimani
