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Shocking £8.5billion Giveaway to Big Business

Wednesday, November 23, 2016

Government’s post-Brexit plan will see wage and household income projections fall, with inflation and the unemployment rate rising, union uncover.

Chancellor Philip Hammond announced an £8.5billion handout to big business while working people were clobbered in today’s statement, analysis reveals
. [1]

GMB, Britain’s general union, today has revealed that the Chancellor’s forecast will see working people paying the price for the Government’s failing policies.

Comparing the Chancellor’s projections today with his predecessor George Osborne’s predictions reveals the Government's rhetoric does not match the reality.

Compared to the OBR's Budget 2016 forecasts, big cuts to wage growth and higher inflation rates are now predicted.

Forecast real household income is set to fall by 1.7% next year, while business investment is set to be cut - when 6% growth was predicted. [2]

Tim Roache, GMB General Secretary, said:

"The new Prime Minister and Chancellor have handed big businesses an £8.5 billion tax giveaway with money that should have been used to rescue and repair public services.

“Philip Hammond's small print shows that in the next three years unemployment will rise while wages will fall short of expectations.

“This is not a positive plan for working people but proof the Tory government is making the wrong choices for the wrong reasons.”


ENDS

Notes to editors

Contact: GMB press office on 07958 156846 or at press.office@gmb.org.uk

Spokespeople available for interview

[1] The Government announced in the 2015 Summer Budget that the Corporation Tax rate would be cut to 19% from 2017/18, and 18% and in 2020/21. The 2020/21 change was later revised down to 17%. The Government ‘recommitted’ to the policy in the Autumn Statement.
According to the Treasury’s revenue change estimates, the culminate loss in tax revenues will be £8,465,000,000 by the end of the 2020/21 financial year.
Source – 2016 Budget Red Book decisions impact tables, pages 84 and 87https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/443300/50325_HMT_Red_Book_Complete.pdf

[2] Figures taken from Tables 3.7 (detailed summary of forecast) and 3.8 (detailed summary of changes to the forecast) of the OBR's Autumn Statement Economic and fiscal outlook, pages 93 and 94 - http://cdn.budgetresponsibility.org.uk/Nov2016EFO.pdf

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