Jeremy Hunt’s autumn statement is an institutionally fatal confrontation between economic libertarianism and reality. Under his self-imposed rules, the government’s programme of the biggest tax cuts since 1988 is to be paid for by future state shrinking so dramatic that it threatens to “bankrupt” essential public services. The speech was dressed up in true-blue clothing, with talk of cutting benefits of the workshy and a big share sell-off. But underneath the garb was an ossifying ruling party desperate to forestall public disillusionment with policies that have become a recipe for disaster.
Voters face lower living standards than before the pandemic, and will pay record levels of tax, while performance in eight out of nine major public services has declined since 2010. Such a reality won’t escape their minds with an election likely next year. The record of administrative failure, extreme inequalities and stuttering growth should have prompted reflection about the direction of travel. Instead, Mr Hunt doubled down, targeting Tory voters with big giveaways. The IPPR thinktank calculated that the richest 20% of households gained almost half the tax cuts – with those in south-east England the biggest winners.
