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10 months ago
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The papers are dominated by reaction to the government's Autumn Statement. The 2p cut to National Insurance is one of the headline policies announced by Chancellor Jeremy Hunt on Wednesday - but as the i newspaper points out, the tax burden is still forecast to grow to the highest level seen since the Second World War. In its preview of the story on its front page, the i says the freezing of income tax thresholds means millions more people will pay higher rates as salaries rise with inflation.
Mr Hunt is pictured on the vast majority of Thursday's front pages, including the Financial Times, which has a similar take to the i. The paper says the budget watchdog - the Office for Budget Responsibility - has "shed a harsh light on the chancellor's fiscal plan", with the tax burden rising for each of the next five years.
The Times is more sympathetic with its headline. Alongside a smiling Mr Hunt outside No 11 Downing Street, the paper says the chancellor is easing the tax burden, though it too notes the OBR forecast in its story.
The Daily Mail is hoping for further tax cuts. The paper says the total burden is still vast but has heralded some of the measures announced by the chancellor, including the £11bn tax break for business, which it describes as the "largest boost in modern history". "Let's hope it's just the start" is the headline on its front page, below a photo of Mr Hunt being congratulated by Prime Minister Rishi Sunak and Work and Pensions Secretary Mel Stride in the House of Commons.
National Insurance is the focus in Metro, which says it will be a "Happy N.I. Year" when the "surprise" cuts are implemented in January. The paper says the chancellor has fired the "election starting gun".
The Sun is similarly euphoric in its assessment of the cuts to National Insurance. "New Year's Wahey!" is the paper's headline - though in parenthesis it notes taxes are still at their highest since the Second World War.
The Daily Telegraph says these are the biggest tax cuts implemented in the UK since the 1980s, but that the measures announced have been dwarfed by the impact of "past stealth tax raids".
It's the same main story in the Guardian, which also includes a photo of a besieged Gaza ahead of the start of a highly-anticipated four-day truce between Israel and Hamas.
The Daily Mirror is scathing in its assessment of Mr Hunt's statement. "Do they take us all for fools?" the paper asks, writing that millions of people will be worse off despite the new measures.
And the Daily Express says the Autumn Statement showed the government had listened to the paper's campaign on protecting the pension triple lock - a safeguard that applies to ensure state pension rises each year by either average earnings, inflation, or 2.5%, whichever figure is the highest. The Express says both the PM and chancellor acknowledged the paper's campaign.
The Daily Mail and the Daily Telegraph both hail what they call "the biggest tax cuts since the 1980s".
The Mail's headline adds: "Let's hope it's just the start". It says the chancellor "defied gloomy predictions" by cutting 2p off National Insurance which it believes is "setting the scene for a tax and spend battle with Labour at the next election".
The Telegraph says the reaction of Conservative MPs was to "cheer the good start" and to call for more before the next election. Its associate editor, Camilla Tominey, says cutting National Insurance was the rabbit pulled from the hat - as Mr Hunt he tried to "cast a new spell over the electorate". Politically, she says, "this mini-budget was an impressive feat of prestidigitation (or conjuring!) in taking the fight to Labour".
The Times front page declares "Hunt eases tax burden" - in contrast to the Financial Times which says "Tax burden surges despite Hunt cuts". The FT explains that personal and business taxes have been reduced but overall taxation is still rising to a post-Second World War high. It says the budget watchdog - the Office for Budget Responsibility - "shed a harsh light" on the chancellor's plans, saying it would be a "modest boost to growth" and see the tax burden rise for the next five years.
Image source, Jessica Taylor/UK Parliament
The Economist calls it a "pre-election giveaway" by the chancellor - offering tax cuts and what it calls "an ugly future for public services". It questions Mr Hunt's assertion that lower inflation has given him the space to cut taxes, arguing that space has actually come from higher inflation.
The Guardian also sees the statement's measures as moving the Tories onto an election footing, fuelling speculation about a snap general election in the spring. It agrees with the Economist that the "bigger than expected" tax cuts will be paid for by a "fresh squeeze on public spending". It sees the rise in state benefits and pensions as a clear sign the government is trying to win votes. The paper's leader article says "this Tory pro-rich tax giveaway is paid for by bankrupting the state".
A champagne cork is pictured popping on the front of the Sun. The January date the National Insurance cut kicks in for 27 million workers, and a freeze on alcohol duty inspires its headline - "New Year's Wahey". For the Daily Mirror, the Autumn Statement is less about fizz and more about "swizz". It says millions of people will be worse off despite paying less National Insurance. It points to economic growth forecasts that have been halved and predictions that inflation will fall more slowly than previously expected. Its headline asks: "Do they take us all for fools?"
