Chancellor to set out ‘Budget for Long Term Growth’

TUC: Long-term growth promise “farcical”

• Chancellor expected to unveil a Spring Budget that will deliver long term growth
• Jeremy Hunt will set out a plan to build a high wage, high skill economy
• Sets out path to more investment, more jobs, more productive public services and lower taxes

The Chancellor will today deliver a Spring Budget that will deliver a long-term plan for growth in the United Kingdom.

Since the Prime Minister set out his five priorities for the government last year, inflation has more than halved from 11% to 4%, the economy has recovered more quickly from the pandemic than first thought, and debt is on track to fall.

Thanks to the stability their economic plan has brought, the country is now at a turning point but there is more work to do to bring inflation down further.

Jeremy Hunt will highlight the government’s focus on the long-term decisions needed to strengthen the British economy and give people the opportunity to build a wealthier, more secure life for themselves and their family.

The Chancellor is expected to say: “In recent times the UK economy has dealt with a financial crisis, a pandemic and an energy shock caused by a war on the European continent.

“Yet despite the most challenging economic headwinds in modern history, under Conservative governments since 2010 growth has been higher than every large European economy – unemployment has halved, absolute poverty has gone down, and there are 800 more people in jobs for every single day we’ve been in office.

“Of course, interest rates remain high as we bring down inflation. But because of the progress we’ve made because we are delivering on the Prime Minister’s economic priorities we can now help families with permanent cuts in taxation.

“We do this not just to give help where it is needed in challenging times. But because Conservatives know lower tax means higher growth. And higher growth means more opportunity and more prosperity.

“But if we want that growth to lead to higher wages and higher living standards for every family in every corner of the country, it cannot come from unlimited migration. It can only come by building a high wage, high skill economy. Not just higher GDP, but higher GDP per head.

“And that’s the difference with the Labour Party. They will destroy jobs with 70 new burdens on employers, reduce opportunities by halving new apprenticeships and risk family finances with new spending that pushes up tax.

“Instead of going back to square one, our plans mean more investment, more jobs, more productive public services and lower taxes – sticking to our plan in a Budget for Long Term Growth.”

Mr Hunt will go on to warn: “An economy based on sound money does not pass on its bills to the next generation.

“When it comes to borrowing, some believe there is a choice between responsibility and compassion. They are wrong.

“It is only because we responsibly reduced the deficit by 80% between 2010 and 2019 that we could generously provide £400 billion to help families and businesses in the pandemic.

“The Labour Party opposed our plans to reduce the deficit every step of the way. But at least they were consistent.

“The Liberal Democrats supported controlling spending in office, but now want to prop up a party after the election that will turn on the spending taps. It’s the difference between Labour with no plan and the Liberal Democrats with no principles.

“But we say something different.

“With the pandemic behind us, we must once again be responsible and increase our resilience to future shocks. That means bringing down borrowing so we can start to reduce our debt.”

Chancellor’s promise of “long-term growth” is “farcical”

Responding to the Chancellor’s promise of a “Budget for Long Term Growth” TUC General Secretary Paul Nowak said: “The Chancellor’s promises are farcical. 

“The Conservatives have been in power for 14 years. It’s a bit late for them to come up with a plan for long-term growth – especially when our economy is in recession. 

“This is desperate spin from a government that has manifestly failed on growth, living standards and public services.”