UK stuck in 'Conservative fate loop' of emergency budgets, says Labor

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The UK economy is stuck in a 'catastrophic loop' of emergency Tory budgets, Labor says - as Jeremy Hunt prepares to make his declaration fall.

Mr Hunt is expected to pass major tax hikes and spending cuts, which he says will restore economic 'stability'.

It comes a few weeks only after Liz Truss and Kwasi Kwarteng unveiled huge unfunded tax cuts, which sent financial markets haywire and led to Ms Truss's resignation as Prime Minister.

In In a video released Thursday morning ahead of the statement, Chancellor Jeremy Hunt said he would make "difficult decisions to restore stability, reduce inflation and balance the books of the nation".

But Pat McFadden, shadow chief secretary to the Treasury, said the UK was stuck in a 'conservative catastrophic loop of emergency declarations' and that Mr Hunt should start his autumn statement today by 'taking responsibility'.

"I think he should recognize their responsi ability for what happened. I don't think he should pretend the mini-budget was just a bad dream," he said.

The Labor MP said the Chancellor should 'overcompensate' the mistakes of the Ms Truss administration and suggested he would be 'desperate to blame global factors' for the UK's poor economic outlook.

On Wednesday, the Bank of England's Andrew Bailey described the UK's economic record in recent years as "not a good story" and said its performance was considerably worse than that of the US and the eurozone.

< p>Speaking on Sky News, Labour's Mr McFadden said the party would present a green investment plan funded "partly by borrowing".

He said it was different from "borrowing for unfunded tax cuts" and for "investments that will have a return on the future of the country".

Mr Hunt should freeze tax thresholds, bringing more people into the upper brackets - and possibly lowering the level at which the top rate of 45p is paid.

But around half of the savings are expected to be expedited. come from cuts in public spending, with many public services already under severe strain thanks to the latest round of austerity.