Today Rishi Sunak boasted that the Tories are increasing public spending faster than Tony Blair. It was revealed that he has raised the most taxes since 1993.

The Chancellor claimed the Conservatives are the ‘party of public services’ as he hailed a £150billion splurge in this parliament.

He stated that the real-terms average increase was 3.8% per annum, the highest rate in over two decades.  

Although Mr Sunak admitted that the tax burden was the highest since 1950s, he insisted that he didn’t apologize for it after the pandemic.  

OBR Watchdog underlined the magnitude of the increase and pointed out that only two financial packages this fiscal year have seen the Chancellor bring in more revenue than 1993’s crisis.

The independent body reported that if you add his March and October Budgets together the Chancellor has increased taxes by more than any other year since Norman Lamont’s 1993 Budgets and Ken Clarkes 1993 Budgets in response to Black Wednesday.

Other experts agreed that the PM had won the argument over whether the government should spend more. 

The Resolution Foundation said Mr Sunak had received a £141billion boon in the OBR forecasts from reduced borrowing over the coming years, but spent half of that in a ‘Boris Budget’. 

Rishi Sunak (left with Boris Johnson) claimed the Conservatives are the 'party of public services' as he hailed a £150billion splurge in this parliament

Rishi Sunak (left with Boris Johnson) claimed the Conservatives are the ‘party of public services’ as he hailed a £150billion splurge in this parliament

Tony Blair

Norman Lamont in 1992

Today Rishi Sunak boasted today that the Tories are increasing public expenditure at a faster pace than Tony Blair (left). It was revealed that he is raising taxes the highest since 1993, when Norman Lamont served as Chancellor.

The tax burden is going to its highest level since the Second World War, despite Rishi Sunak's promise that he wants to cut it

Despite Rishi Sonak’s promise to cut it, the tax burden has reached its highest level since World War II. 

In his speech, Mr Sunak said the Budget would usher in a ‘new economy’ after the pandemic as he confirmed billions of pounds for the NHS and wage rises for millions of workers.

‘Today’s Budget increases total departmental spending over this Parliament by £150billion,’ he said.

‘This is the largest increase this century with spending growing by 3.8 percent per annum in real terms. 

“As a consequence of this Spending Review, contrary to speculation, there will actually be an increase in total spending for every department.

“And public sector net investments as a percentage of GDP will be at their highest sustained level in nearly 50 years.” If anyone still doubts this, today’s Budget proves that the Conservatives are the true party of public services.

Local government will get £4.8 billion in grant funding over three years, the largest increase for more than a decade, he said.

He also promised that the devolved administrations will be given the ‘largest block grants’ since 1998, with an increase to Scottish Government funding in each year by an average of £4.6billion, £2.5billion for the Welsh Government, and £1.6billion for the Northern Ireland Executive.

Research and development spending will be be £20billion a year by the end of the parliament, a 50 per cent increase and a greater proportion of GDP than in Germany, France and the US. 

Meanwhile, in a boon for pubs and high street retailers Mr Sunak said their business rates are being slashed by 50 per cent this year – worth £1.7billion. There are also reforms that in total will benefit them to the tune of £7billion. 

To reduce the pressure on drivers due to high fuel prices, fuel duty will be frozen. In addition, alcohol taxes will be drastically simplified. Special lower duty rates will apply to draught beverages. 

And in one of the most eye-catching moves, Mr Sunak said universal credit is being made far more generous to give families another £2billion. The taper rate, which is how much claimants lose each hour they work beyond the allowance, has been reduced from 63p to 55p. 

The minimum wage is also being hiked to £9.50 next year, and the public sector pay freeze is being axed. 

The splurges have been partially offset by the pre-announced taxes rises, such as the huge increase in national insurance for social care and the use a double lock rather than the triple lock for state pensions.

It means that overall the Budget only leaves the government £7.7billion a year worse off, according to Budget documents.  

Spending as a share of GDP is not going back to its pre-pandemic levels, according to the OBR

According to the OBR, spending as a percentage of GDP is not returning to pre-pandemic levels.