Labour's Rachel Reeves accused the Tories of "picking the pockets of purses and wallets of the entire country" after Jeremy Hunt delivered his Autumn Statement.
The Shadow Chancellor responded to the Chancellor of Exchequer's speech on Thursday (November 17), which outlined the Rishi Sunak government's economic approach. Mr Hunt said he would “tackle the cost-of-living crisis” and rebuild the country's economy as he explained his plans.
Ms Reeves tore into the Tories' record in government over the past 12 years, which she said has culminated in failing to tackle the cost of living crisis. She described Mr Hunt's plans as being made up of "excuses and unfair choices".
READ MORE: Millions to pay more tax after Jeremy Hunt Autumn Statement
The Chancellor announced a £30billion package of spending cuts and £24billion in tax rises over the next five years. It marked a significant departure from plans set out by then-Chancellor Kwasi Kwarteng's mini budget in September.
Mr Kwarteng's plans of tax cuts terrified the markets and were swiftly scrapped, though that didn't stop them leading to the resignation of Liz Truss. Mr Sunak's government will do things differently.
A major challenge stands in the shape of the The Office for Budget Responsibility's analysis which showed rising prices would erode real wages and reduce living standards by 7% in total over the two financial years to 2023-24, wiping out the previous eight years’ growth, despite over £100 billion of additional Government support.
One of Mr Hunt's headline plans to tackle the bleak financial situation was a freeze in the threshold for income tax and national insurance until April 2028. This, however, will act as a stealth tax for millions as wages increase.
Labour took aim at this as Ms Reeves provided the opposition's response to the statement.
Ms Reeves told the Commons: "In the last hour, the Conservatives have picked the pockets of purses and wallets of the entire country as the Chancellor has deployed a raft of stealth taxes taking billions of pounds from ordinary working people. A Conservative double whammy that sees frozen tax thresholds and double-digit inflation erode the real value of people’s wages.
“Just one of those freezes, in the personal allowance, will cost an average earner more than £600.”
Ms Reeves continued her assault on the plans, saying the Tories had "crushed" the UK's economy. She said they have: "Crushed our economy, given up on growth and sent inflation through the roof and as usual, it is ordinary working people who are paying the price."
The Shadow Chancellor said the British public will feel a sting from the plans. She turned to The Police's 1983 hit 'Every Breath You Take' as she criticised Mr Hunt's statement.
Ms Reeves said: “It is a familiar tune, every mortgage they raise, every cut they make, every tax they hike, the Conservatives are costing you.
“And what have we heard today? Yet more excuses and unfair choices.
"They have failed to tackle the cost of living crisis, they have failed to show how they will fix our public services, they have failed to show how they will deliver growth and they have no plan for the future of our country.
“And everything we have heard today and after 12 long years of Tory failure, the conclusion that we must come to is that Britain can no longer afford a Conservative Government.”
The Chancellor's other announcements included reducing the threshold at which the top rate of income tax is paid from £150,000 to £125,140. He said those earning £150,000 or more will pay just over £1,200 more a year.
Mr Hunt increased the windfall tax on oil and gas giants from 25% to 35% and imposed a 45% levy on electricity generators to raise an estimated £14 billion next year. He also increased the energy price cap from £2,500 for the average household to £3,000 for 12 months from April, while electric vehicles will not be exempt from road tax from 2025.
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