Page 3 - Budget Newsletter November 2022

OBR’s latest forecasts are inflation of 11% and 7.4% and, rather than growth in 2023,
a 1.4% contraction.

• Two months after the OBR’s Spring Statement calculations, the government

announced an energy support package with an estimated cost of £15bn.

• In September Liz Truss announced a further utility price support package, including
the £2,500 Energy Price Guarantee, initially set to run until October 2024. Its cost, for
just the second half of 2022/23, was estimated at £60bn.

• The cost of servicing government debt has been ramped up by increasing interest
rates and rapidly rising inflation – of which Wednesday’s figures (11.1% CPI and
14.2% RPI to October 2022) were the latest example. The total interest bill for the
current financial year will now exceed £120bn according to the OBR – more than
twice the size of the black hole. The combination of quantitative easing (QE) and
heavy reliance on index-linked debt that had helped lower the outlay on debt

servicing in earlier years is now having a dramatically opposite effect.

In this Newsletter we look at the impact of the tax and spending proposals announced by
Mr Hunt and offer a refresher of what remains from Mr Kwarteng’s ill-fated ‘fiscal event’ and
other relevant announcements made by his predecessors.

If you need further information on how you will be affected personally, you are strongly
recommended to consult your financial adviser.

Raymond James Budget Newsletter November 2022 2