The New York TimesThe New York Times

Facing recession, U.K. outlines billions in tax increases and spending cuts

By Mark Landler

17 Nov 2022 · 5 min read

Editor's Note

The U.K. is in recession, and it’s probably about to get worse as the country’s leaders just passed one of the most austere budgets in recent British history. They had little choice. The NYT explains.

LONDON — Seeking to restore Britain’s fiscal credibility after a calamitous foray into trickle-down economics, the British government Thursday announced tens of billions of pounds of tax increases and spending cuts that officials promised would plug a gaping hole in the nation’s public finances.

The chancellor of the Exchequer, Jeremy Hunt, detailed a raft of higher taxes, worth 25 billion pounds, or about $29.7 billion, and cuts to government programs of about 30 billion pounds, though the cost reductions will not take effect for two years. It amounted to one of the most austere budgets ever imposed on Britain, a country that is already in a recession.

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