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

[22 November 2023 12:57 · Matt Mathers]

UK will continue to meet Nato committment of 2% of GDP on defence

Chancellor Jeremy Hunt said the government would continue to meet its Nato commitment to spend 2 per cent of GDP on defence

On veterans, Mr Hunt said: “I will extend national insurance relief for employers of eligible veterans for a further year and provide £10 million to support the Veterans’ Places, Pathways and People programme.”

[22 November 2023 13:00 · Matt Mathers]

£10,000 off your energy bill if you live near a new pylon

People living near planned pylons and electricity substations are set to receive up to £10,000 off their bills over 10 years, Kate Devlin reports.

The move is designed to get large infrastructure projects moving over objections by so-called “nimby” campaigners.

But fuel poverty campaigners warned Mr Hunt that the £1,000-a-year subsidy would help many wealthy Britons in the countryside, while many others struggling with their bills face a dire choice between heating or eating.

[22 November 2023 13:05 · Matt Mathers]

£50m to increases apprentices in ‘key growth sectors'

Chancellor Jeremy Hunt announced £50 million over the next two years to try to increase the number of apprentices in engineering and “key growth sectors” where there are shortages.

On planning, Mr Hunt said it takes “too long” to approve infrastructure projects and business planning applications.

He said: “Many businesses say they would be willing to pay more if they knew their application would be approved faster.

“So from next year, working with the communities secretary, I will reform the system to allow local authorities to recover the full costs of major business planning applications in return for being required to meet guaranteed faster timelines.“

“If they fail, fees will be refunded automatically with the application being processed free of charge.”

On housing, Mr Hunt said the government would invest £110 million over this year and next to deliver “high-quality nutrient mitigation schemes, unlocking 40,000 homes” and consult on a new permitted development right to allow any house to be converted into two flats provided the exterior remains unaffected.

[22 November 2023 13:07 · Matt Mathers]

Jeremy Hunt made a jibe at shadow chancellor Rachel Reeves during his autumn statement, Lucy Neeson reports.

Hunt told the Commons: “Let’s start with inflation. The shadow chancellor didn’t mention it in her conference speech. My conference speech was before hers so all she had to do was a bit of copying and pasting which I’ve heard she’s good at.”

On Ms Reeves’ Labour’s conference speech, he added: “It speaks volumes that during the worst global inflation shock for a generation, it didn’t even get a mention.”

Watch the clip here:

[22 November 2023 13:09 · Matt Mathers]

Paul Johnson: Chancellor’s budget ‘not good for growth’

The director of influential think tank the Institute for Fiscal Studies (IFS) has said Jeremy Hunt’s spending plans are “not good for growth”, Archie Mitchell and Adam Forrest report.

Just minutes after the chancellor took to his feet in the commons to set out plans to revive Britain’s flatlining economy, Paul Johnson slammed Mr Hunt’s cash freeze in public sector investment.

Mr Johnson said: “The chancellor just announced a long term cash freeze in investment spending. That’s a significant real cut of course.

“We already have public sector investment well below that in most comparable countries. That is not good for growth.”

He also said that local authorities will be able to recover the full costs of planning applications if they prompt deadlines.

He also revealed legislative plans allow house to be converted into two flats.

[22 November 2023 13:10 · Matt Mathers]

A pension pot for life

Pension savers will have the right to have “one pension pot for life”, Jeremy Hunt said.

The chancellor told MPs: “I will also consult on giving savers a legal right to require a new employer to pay pension contributions into their existing pension pot if they choose, meaning people can move to having one pension pot for life.

“These reforms could help unlock an extra £75 billion of financing for high-growth companies by 2030 and provide an extra £1,000 a year in retirement for an average earner saving from 18.”

Mr Hunt said he would also take forward “further capital market reforms, to boost the attractiveness of our markets, and the UK one of the most attractive places to start, grow and list a company”.

[22 November 2023 13:14 · Matt Mathers]

Office for Budget Responsibility confirms GDP growth downgrade

The Office for Budget Responsibility has set out Britain’s growth forecasts, confirming the major downgrade set out by Jeremy Hunt, Archie Mitchell reports.

The OBR downgraded next year’s GDP growth forecast from an expectation in March of 1.8 per cent to just 0.7 per cent.

[22 November 2023 13:16 · Matt Mathers]

Budget: What’s in and out of Jeremy Hunt’s autumn statement?

Jeremy Hunt has declared Britain’s economy “back on track” as he prepares to announce a cut to national insurance and extend a £10bn-a-year tax break for businesses.

Rishi Sunak’s chancellor is set to offer a national insurance cut for 28 million workers in a bid to keep Tory MPs happy, and boost the party’s fortunes in the polls ahead of the general election.

Mr Hunt claimed his plan for the British economy “is working”, but Labour accused the Tories of “making working people worse off”. Here’s a closer look at what’s in the autumn statement.

Adam Forrest takes a look at what made it into the statement and what did not.

[22 November 2023 13:19 · Matt Mathers]

Business rates relief extended and tax breaks on investment made permanent

Jeremy Hunt has extended a freeze on the business rates multiplier for small businesses, which determines the level of the tax firms pay, Archie Mitchell and Kate Devlin report.

And the chancellor extended a 75 per cent discount on business rates for retail, hospitality and leisure businesses which have struggled to bounce back from the pandemic.

The chancellor extended both the reliefs for an additional year, hailing the measures as a “large” tax cut costing £4.3bn. “This will save the average independent company over £12,800 next year,” Mr Hunt said.

Mr Hunt has made permanent the temporary tax break for businesses knows as “full expensing”, which allows companies to offset any investments.

The tax break, which costs £11bn a year, had been set to expire in 2026.

[22 November 2023 13:21 · Matt Mathers]

NI boost for self-employed

Chancellor Jeremy Hunt also announced changes designed to help self-employed workers, hailing them as the people who “kept our country running during the pandemic”.

Mr Hunt said: “Class 2 national insurance is a flat rate compulsory charge, currently £3.45 a week, paid by self-employed people earning more than £12,570 which gives state pension entitlement.

“Today, after careful consideration and in recognition of the contribution made by self-employed people to our country, I can announce we are abolishing class 2 national insurance altogether, saving the average self-employed person £192 a year.

“Access to entitlements and credits will be maintained in full and those who choose to pay voluntarily will still be able to do so.”

Mr Hunt also turned to class 4 national insurance paid at 9% on all earnings between £12,570 and £50,270.

Mr Hunt said: “I have decided to cut that tax by one percentage point to 8% from April. Taken together with the abolition of the compulsory class 2 charge, these reforms will save around two million self-employed people an average of £350 a year from April.”