Autumn Statement: Energy price cap increase dampens Hunt’s ‘tax cuts’ as he denies pre-election handout – live

Chancellor insists public spending freeze in autumn statement will not result in worse public services

Autumn budget 2023: Key announcements from Jeremy Hunt's statement

Energy bills will rise again in a blow to millions, as analysts warned that the tax cuts unveiled in chancellor Jeremy Hunt’s autumn statement would be “dwarfed” by other tax rises already in motion.

Experts lamented that ministers had “missed the opportunity” to announce extra support for households in desperate need this winter, as Ofgem announced its energy price cap would rise by 5 per cent in January, adding £94 to a typical gas and electricity bill.

Mr Hunt defended tax cuts that will leave public services – already buckling after years of austerity – facing what economists called an “implausible” spending squeeze.

The Institute for Fiscal Studies warned Britain was on course for drastic public-sector cuts even more “painful” than the austerity of the 2010s.

The Resolution Foundation said the national insurance cuts were “dwarfed by tax rises already under way”, set to make households an average of £1,400 poorer. The think-tank also criticised the chancellor’s public spending freeze, asking: “What's the plan here? Abolish the criminal justice system and public transport maybe?”

Key Points

• Jeremy Hunt ‘missed opportunity’ to ease energy bill increases
• Cuts even more painful than austerity era on way, say economists
• Households ‘will be £1,200 worse off' despite cuts in autumn statement
• ‘What’s the plan here?’: Hunt’s tax plans ‘risk completely implausible’ public spending cuts
• Economy to grow just 0.6% as OBR downgrades forecasts
• Recap: Taxes cut, pensions triple locked and benefits at threat in autumn statement

[23 November 2023 14:19 · Jane Dalton]

Hunt giving back only 25p for every £1 of higher taxes

The Institute for Fiscal Studies says for every £1 the Treasury has taken from taxpayers, less than 25p is coming back in tax cuts.

Its analysis shows that Mr Hunt’s tax cuts give back to taxpayers less than £1 for every extra £4 being paid in tax rises since 2021.

The freezing of tax thresholds “gradually brings more and more people into higher tax brackets, and especially so at a time of high inflation”.

The institute also says real household disposable income will still be 3% lower next year than in 2021 because of inflation.

[23 November 2023 14:40 · Jane Dalton]

Sunak must investigate Cameron’s Greensill tax affairs, says Labour

[23 November 2023 15:00 · Jane Dalton]

Sunak under mounting pressure as net migration soars to record high

Rishi Sunak is facing a major backlash from right-wing Tory MPs as figures showed net migration to the UK soared to a record high:

[23 November 2023 15:11 · Jane Dalton]

Hunt denies lying about ‘record tax cuts’ claim

Jeremy Hunt has denied being “fundamentally dishonest” by claiming his new tax cuts are “the biggest in history”:

[23 November 2023 15:14 · Jane Dalton]

Opinion: ‘I blame record-high immigration on Boris Johnson’s ‘cakeism’’

In 2019, the then PM reportedly told colleagues to ignore a promise on immigration, writes Sunder Katwala:

[23 November 2023 15:16 · Jane Dalton]

Top Tory urges home secretary to apologise for ‘s***hole’ comment

A source close to James Cleverly said the home secretary instead said that Labour MP Alex Cunningham was a ‘s*** MP’:

[23 November 2023 15:18 · Jane Dalton]

We are now putting our live coverage of reaction to the autumn statement on hold.