Post by account_disabled on Feb 26, 2024 23:24:54 GMT -5
UK ministers are exploring the possibility of cutting benefits to working-age people in real terms ahead of a general election due next year, in an effort to create room for tax cuts and lay a political trap for Labor, according to senior conservatives. Chancellor Jeremy Hunt will deliver his Autumn Statement on November 22 and is under pressure from Conservative MPs to start cutting taxes amid a tight fiscal backdrop. Although officials briefed on the discussions told the Financial Times that talks were at an early stage, one option ministers are considering is breaking the link between inflation and improved profits. “This would put Labor in a bind because they would have to say whether they were going to do the same,” said one government insider. Conservatives would argue that cutting welfare was necessary to fund tax cuts, the person added.
Rachel Reeves refused to be drawn into what the Labor Party has already identified as a potential trap. «All this is very speculative; “We are not going to comment,” said a spokesman for the shadow chancellor. The idea of cutting Jordan Mobile Number List benefits in real terms would be controversial, even among some Conservative MPs, and would risk being seen as an attack on vulnerable people already struggling with the cost of living crisis. The Treasury declined to comment on a Bloomberg News report that said options ministers were considering included raising benefits by at least 1 percentage point below inflation or raising them in line with the lowest inflation figures projected for next year. Government experts said discussions over next year's Autumn Statement and benefit improvements were at a preliminary stage and confirmed such a move would be seen as highly political.
The Department for Work and Pensions said: “To protect the most vulnerable from the impact of high inflation, the government has increased benefits by more than 10 per cent this year. “As is the usual process, the Secretary of State will carry out the statutory annual review of state benefits and pensions in the autumn, using the most recent data available.” Allies of Liz Truss, the former prime minister, said she had proposed below-inflation benefit increases during her short tenure by linking the rises to wages rather than price increases. Truss' team claims their idea was rejected by cabinet members but would have saved almost £5bn a year. “This is another pale imitation of the Truss playbook,” said one ally. The government froze benefits for working-age people for four years starting in April 2016, so there is precedent for such a move, but that was at a time of much lower inflation.
Rachel Reeves refused to be drawn into what the Labor Party has already identified as a potential trap. «All this is very speculative; “We are not going to comment,” said a spokesman for the shadow chancellor. The idea of cutting Jordan Mobile Number List benefits in real terms would be controversial, even among some Conservative MPs, and would risk being seen as an attack on vulnerable people already struggling with the cost of living crisis. The Treasury declined to comment on a Bloomberg News report that said options ministers were considering included raising benefits by at least 1 percentage point below inflation or raising them in line with the lowest inflation figures projected for next year. Government experts said discussions over next year's Autumn Statement and benefit improvements were at a preliminary stage and confirmed such a move would be seen as highly political.
The Department for Work and Pensions said: “To protect the most vulnerable from the impact of high inflation, the government has increased benefits by more than 10 per cent this year. “As is the usual process, the Secretary of State will carry out the statutory annual review of state benefits and pensions in the autumn, using the most recent data available.” Allies of Liz Truss, the former prime minister, said she had proposed below-inflation benefit increases during her short tenure by linking the rises to wages rather than price increases. Truss' team claims their idea was rejected by cabinet members but would have saved almost £5bn a year. “This is another pale imitation of the Truss playbook,” said one ally. The government froze benefits for working-age people for four years starting in April 2016, so there is precedent for such a move, but that was at a time of much lower inflation.