Having met his pledge to halve inflation by the end of the year — albeit thanks to the Bank of England — Rishi Sunak has confirmed that tax cuts will be in tomorrow’s Autumn Statement. Much of the focus is likely to fall on business taxation in the face of a flatlining economy and stalling productivity growth.
This is to be funded by higher-than-expected “fiscal headroom”. But this is not all as it seems. The Institute for Fiscal Studies has called this money an “illusion”, as it includes higher tax receipts in cash terms but funding for public services has not been increased to take into account high inflation. This at a time when the NHS waiting list approaches eight million, school buildings are crumbling and the criminal justice system is on its knees.
Tax cuts will certainly be a welcome relief in what is set to be the most tax-raising parliament in history. But they must be targeted to drive growth, investment and jobs in our economy, rather than cause inflation to tick up. Another tightrope for Jeremy Hunt to walk.
Hostage deal vital
The latest eruption of violence in the Middle East began on October 7, when Hamas gunmen stormed into Israel, killing 1,200 people and taking nearly 250 hostage. Israeli forensic teams continue to document women being sexually assaulted and raped.
For days, reports in the region have suggested that a hostage deal may be imminent. This would see Hamas releasing a number held in captivity, in exchange for Palestinians in Israeli jails and a pause in the fighting.
Such an agreement would reunite hostages with their desperate families while allowing far greater aid to flow into Gaza, where a humanitarian crisis is unfolding and the Hamas-run health ministry says more than 13,000 people have been killed. What calls for an immediate ceasefire often overlook is that such a truce must be adhered to not only by Israel but also Hamas. A deal would represent a vital breakthrough.
Viva... the Sphere?
That a planning development in Britain has been refused permission is hardly “man bites dog”. Still, fans of the Las Vegas Sphere will be disappointed to learn that plans for a London version on the edge of the Olympic Park have been rejected by Sadiq Khan.
The Mayor blocked the giant dome due to concerns about light pollution, its lack of green credentials and the impact on heritage sites in the area. The application now passes to Communities Secretary Michael Gove for a final ruling. Perhaps it is an example of “right idea, wrong place”’. In which case, it is more suited to Old Oak Common.
