Energy bills will rise again in a blow to millions, as analysts warned that the tax cuts unveiled in chancellor Jeremy Hunt’s autumn statement would be “dwarfed” by other tax rises already in motion.
Experts lamented that ministers had “missed the opportunity” to announce extra support for households in desperate need this winter, as Ofgem announced its energy price cap would rise by 5 per cent in January, adding £94 to a typical gas and electricity bill.
Mr Hunt defended tax cuts that will leave public services – already buckling after years of austerity – facing what economists called an “implausible” spending squeeze.
The Institute for Fiscal Studies warned Britain was on course for drastic public-sector cuts even more “painful” than the austerity of the 2010s.
The Resolution Foundation said the national insurance cuts were “dwarfed by tax rises already under way”, set to make households an average of £1,400 poorer. The think-tank also criticised the chancellor’s public spending freeze, asking: “What's the plan here? Abolish the criminal justice system and public transport maybe?”
