U.K. Finance Minister Jeremy Hunt delivered his Autumn Statement on Thursday, announcing a slew of tax rises and spending cuts as he attempts to plug a substantial hole in the country's public finances.
He unveiled a sweeping £55 billion ($66 billion) fiscal plan as he sought to restore the country's credibility under new Prime Minister Rishi Sunak's government, after the chaos unleashed by former leader Liz Truss' disastrous "mini-budget" in late September.
Hunt's announcements on Thursday will mean millions more people paying higher rates of income tax and higher energy bills. He also confirmed a substantial increase to windfall taxes on the profits of oil and gas companies and additional investment in schools and the National Health Service.
The independent Office for Budget Responsibility (OBR) now estimates that the U.K. economy is in recession and that GDP will contract by 1.4% in 2023, while inflation is predicted to hit 9.1% this year and 7.4% next year.