Autumn statement – latest: Jeremy Hunt cuts national insurance but tax burden set to hit post-war high

Jeremy Hunt cut national insurance for 27 million workers as he delivered an autumn statement that he claimed would bring tens of thousands more people into work.

The Chancellor said the two-percentage-point reduction would save someone earning £35,000 more than £450.

But millions of workers will face a squeeze on their finances with the tax burden still set to reach a record high, with the Treasury raking in £200bn as starting thresholds remain unchanged.

With an election expected next year, the national insurance cut will be rushed through Parliament to boost Rishi Sunak’s chances.

The Office for Budget Responsibility also significantly downgraded its growth forecasts, with the economy now expected to grow just 0.6 per cent this year and 0.7 per cent next.

Mr Hunt raised the National Living Wage to £11.44 an hour, kept the pensions triple lock and vowed to increase in-work benefits by 6.7 per cent.

Labour said growth had hit a dead end under the Conservatives.

And campaigners accused the government of punishing people by framing disability as a lifestyle choice as he announced a crackdown on benefits for people with mobility or mental health struggles unless they work from home.

Key Points

• Jeremy Hunt announces 2% national insurance cut

• Economy to grow just 0.6% as OBR downgrades forecasts

• Chancellor vows crackdown on disability benefits

• Hunt freezes alcohol duty in autumn statement

• Budget ‘not good for growth’, top economists warn

• Inflation to stay higher for longer, OBR confirms

• Even Saatchi and Saatchi say Tories not working, say Labour

• House prices to fall 4.7% next year, say OBR

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

15:16 , Jane Dalton

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

Top Tory urges James Cleverly to apologise for Stockton North ‘s***hole’ comment

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

15:14 , Jane Dalton

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

I blame record-high immigration on one man – Boris Johnson | Sunder Katwala

Hunt denies lying about ‘record tax cuts’ claim

15:11 , Jane Dalton

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

Jeremy Hunt denies lying about ‘record tax cuts’ claim

Sunak under mounting pressure as net migration soars to record high

15:00 , Jane Dalton

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:

Rishi Sunak under mounting pressure as net migration soars to record high

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

14:40 , Jane Dalton

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

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

14:19 , Jane Dalton

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.

Cuts even more painful than austerity era on way, say economists

13:59 , Jane Dalton

Jeremy Hunt’s economic plans have put Britain on course for drastic public sector cuts even more “painful” that the austerity period of the 2010s, top economists have warned:

Hunt budget means spending cuts ‘even more painful than austerity era’

Eye patients forced to go private or go blind due to soaring NHS waits

13:46 , Jane Dalton

Patients are being forced to pay for private eye care or risk going blind as the backlog for NHS treatment soars, a survey of optometrists has found:

Eye patients forced to go private or go blind due to soaring NHS waiting lists

We’re ready for election now, says Starmer

13:32 , Jane Dalton

Sir Keir Starmer has said Labour is “ready for an election straight away”.

“The reason for that is because I don’t think that the British public, and the voters, can afford to wait any longer,” he said.

Jeremy Hunt’s tax-cutting triggered speculation about a general election next spring.

No 10 plays down fears of more harm to public services akin to austerity

13:29 , Andy Gregory

Downing Street played down concerns that public spending plans for the next parliament will cause yet more damage to public services on a scale similar to the peak of austerity.

Rishi Sunak’s official spokesperson said: “Total departmental spending will be £85bn higher in real terms over the next five years compared to the start of this parliament. Departmental spending will continue to grow.

“You’ve also heard the chancellor talk about the need to improve productivity and to reduce the size of the civil service.”

The official rejected the Resolution Foundation think tank’s assessment that cuts to public spending would be similar in scale to the peak years of austerity.

“I don’t think when departmental spending is significantly increasing that is a claim that adds up”, he said, adding that significant sums are being invested into “priority areas” such as the NHS.

Hunt’s autumn statement will help lay groundwork for next election, says Tory MP

13:12 , Andy Gregory

The measures in Jeremy Hunt’s autumn statement will help lay the groundwork for the Conservatives at the next election, Conservative MP Sir Robert Syms has suggested.

The Poole MP told the Commons: “It is going to be an interesting year. I suspect most of the speeches in this House are going to look like party political broadcasts about who is doing what and who can do things better.

“But we all know to some extent ‘it is the economy, stupid’, and at the end of the day I suspect in October, November, of next year, it will be whether or not the government continues to make progress as it is making progress and whether people accept that, and they decide to hold on to nurse for fear of something worse, or whether or not they believe the rhetoric of the honourable member [Labour’s Jonathan Reynolds] and others that they can actually do better.”

Hunt’s tax cuts ‘a surefire way to end up with rising debt’, says analyst

12:56 , Andy Gregory

The Chancellor’s decisions in the autumn statement are “a surefire way to end up with debt rising over time”, an economist has said.

Thomas Pope, deputy chief economist at the Institute for Government, criticised Jeremy Hunt’s decision to spend virtually all of the extra money he was forecast to have on Wednesday while accepting higher borrowing at the Budget in March when forecasts were more negative.

Spending all of the “good news” when forecasts could still change was not “a sensible or responsible way of making fiscal policy”, said Mr Pope, adding: “That is a surefire way to end up with debt rising over time if you spend your good news and swallow your bad news.”

Welfare spending to be kept under review, No 10 says

12:28 , Andy Gregory

The government will keep welfare spending under review, Downing Street said while defending the breach of the welfare cap.

The Office for Budget Responsibility forecast that the welfare cap will be bust by £8.6 billion in 2024-25.

Rishi Sunak’s official spokespersonn told reporters: “This is an autumn statement where we’ve made decisions to help those most in need.

“We’ve provided tax cuts through national insurance contribution and we’re helping the most vulnerable through uprating benefits. I think people understand that given there are still challenges caused by the global headwinds that it is right to do so. Obviously, we keep that under review.

“What you’ve seen through the changes introduced through the Department for Work and Pensions is an approach whereby we are getting tougher on those who aren’t taking the support that’s being made available to them and removing their benefits.”

Labour MPs ridicule Sunak’s appointment of ‘minister for common sense’

12:03 , Andy Gregory

Esther McVey has insisted she is “committed to delivering common sense decisions” as opposition politicians teased the Tory MP in the Commons over reports of her new informal title as Rishi Sunak’s minister for common sense.

Labour MP Alison McGovern questioned whether Mr Sunak’s introduction of a minister for common sense was “an admission that you yourself don’t really have any”.

To illustrate the point, shadow minister Nick Thomas-Symonds pointed to the PM’s “struggles using a contactless card at a petrol station, and indeed his impression that private helicopter is the best way to get to Southampton”.

Ms McVey said: “I also have seen the reports in the paper describing me as the minister of common sense. And I appreciate the concept is a difficult one to grasp for the members on the other side of the bench there.

“But I am committed to delivering common sense decisions, such as delaying the ban on petrol and diesel cars, delaying the ban on oil and gas boilers, scrapping HS2 Birmingham to Manchester, reducing the overseas budget, all common sense policies that those on the opposite benches have voted against.”

Fiscal watchdog relaxed about tax cuts because ‘borrowing is unchanged’

11:39 , Andy Gregory

Office for Budget Responsibility chair Richard Hughes was asked why the fiscal watchdog was relaxed about the chancellor’s tax cuts in regards to inflation.

The Resolution Foundation said the tax cuts announced by Jeremy Hunt were the largest since 1988.

“In essence, because borrowing is unchanged,” Mr Hughes told a post-autumn statement event by the think tank. “Higher inflation is bringing in more tax revenue. And the Chancellor decided to give that back to taxpayers.”

Asked if inflation could have come down quicker without the tax cuts, he declined to comment, adding: “I only do one forecast at a time.”

Hunt ‘missed opportunity’ to help millions struggling with energy bills

11:30 , Andy Gregory

Millions of householders are set to pay 5 per cent more for their gas and electricity bills after the energy watchdog announced its latest price cap.

Bills for a typical energy user paying by direct debit will rise from £1,834 a year to £1,928, an increase of £94, Ofgem announced on Thursday. The new rates – which come into effect from 1 January – will cause dismay among the millions of people across the UK struggling with the cost of living.

Citizens Advice warned it was already helping record numbers with energy debt and was seeing more people than ever who can’t afford to top up their prepayment meter.

“Prices going up during the coldest part of the year will make life harder for millions of people already struggling to pay their bills,” said Gillian Cooper, director of energy at Citizens Advice.

“Yesterday, the government missed the opportunity to announce extra support for households who desperately need it this winter. The lack of action means far too many households will now be forced to choose between heating and eating this winter.”

Ofgem unveils price cap rise as millions to pay more for energy bills

Hunt insists it is ‘silly’ to say he made tax cuts with an eye on looming general election

11:13 , Andy Gregory

Jeremy Hunt has insisted that it is “silly” to think about his tax cuts as a pre-election giveaway.

The chancellor told Sky News: “We haven’t chosen the most populist tax cuts. I think it’s silly to think about this in terms of the timing of the next election. We’re trying to make the right decisions for the long-term growth of the British economy.”

Mr Hunt insisted he had not discussed the timing of the general election with Rishi Sunak, but did not rule out an early spring Budget.

He told LBC that the national insurance cut will be brought forward from April to take effect in January because “I want to bring help for families as soon as possible” as energy bills continue to rise.

Asked if he could rule out February as the date for the next budget, the senior Tory said: “I can’t rule out anything because I haven’t taken any decisions. Normally it’s in March, but we will make a decision at the appropriate time.”

Hunt’s tax reductions being paid for by cuts to public spending, says IFS

11:07 , Andy Gregory

Paul Johnson, director of the Institute for Fiscal Studies, said the “substantial tax cuts” in Chancellor Jeremy Hunt’s autumn statement are being “paid for by planned real cuts in public service spending”.

In a post-statement briefing on Thursday, Mr Johnson said the chancellor is “by the narrowest of tiny margins still on course to meet his – poorly designed – fiscal rule that debt as a fraction of national income should be falling in the last year of the forecast period”.

He continued: “That is on the basis of a series of questionable, if not plain implausible, assumptions. It assumes that many aspects of day-to-day public service spending will be cut. It assumes a substantial real cut in public investment spending.

“It assumes that rates of fuel duties will rise year on year with inflation - which they have not done in more than a decade and they surely will not do next April.

“It assumes that the constant roll-over of ‘temporary’ business rates cuts will stop. It assumes, of course, that the economy doesn’t suffer any negative shocks.”

Exclusive: Labour MP invites James Cleverly to Stockton after claims home secretary called it a ‘s***hole’

11:03 , Andy Gregory

James Cleverly has been invited to visit the north east constituency he allegedly called a “s***hole” to see it for himself.

Alex Cunningham, the Labour MP for Stockton North, claimed the home secretary made the offensive remark in the Commons on Wednesday.

Mr Cleverly has denied calling Stockton a “s***hole” – but Mr Cunningham continues to demand an apology, and wants the cabinet minister to see the vibrancy of the area in person.

“I invite him to come to Stockton and I will show him our conservation areas, our ambition for Stockton, Billingham and elsewhere and have him visit our cultural quarter and our huge industrial base,” the frontbencher told The Independent.

Mr Cunningham added: “But I will also show him the communities where 34 per cent of children live in poverty – the damage done by his government’s policies and finish at North Tees hospital which needed replacing over a decade ago.”

Our political correspondent Adam Forrest has the full exclusive report here:

Labour MP invites James Cleverly to Stockton after claims he called it a ‘s***hole’

OBR working with ‘four years of just four numbers'

10:47 , Andy Gregory

OBR chairman Richard Hughes said that his fiscal watchdog was working with “four years of just four numbers” on the latter part of government spending plans, following the autumn statement.

He told a Resolution Foundation event: “There are political choices involved there. What we don’t know is what those political choices are, because their spending framework doesn’t require when to make them.

“In any other country in the world, if you look at their fiscal forecasts, they have got a detailed spending plan going out five years, telling you how much they are spending on health, education, transport.

“In our framework, these things kind of run out until the Government makes a political decision to run a spending review.”

Full report: Jeremy Hunt denies lying about ‘record tax cuts’ claim

10:41 , Andy Gregory

Jeremy Hunt has denied being “fundamentally dishonest” by claiming his new tax cuts are “the biggest in history”, reports our political correspondent Archie Mitchell.

The chancellor came under fire after independent experts said overall taxes are still going up despite the announcement of a two per cent cut in national insurance in Wednesday’s autumn statement.

The Conservative Party sparked fresh controversy by publishing an official advert this morning stating that the tax cuts, including a business tax reduction, are “the biggest ever”. The poster was slapped with a clarifying “community note” on social media platform X, which clarified the tax burden is on course to reach a post-war high.

Official spending watchdog the Office for Budget Responsibility (OBR) also stressed that taxes are on course to reach the highest level since the Second World War, despite Mr Hunt’s giveaways.

Jeremy Hunt denies lying about ‘record tax cuts’ claim

Newspaper front pages highlight contradiction in tax cut claims

10:38 , Andy Gregory

The front pages of today’s newspapers highlight the contradictory nature of claims surrounding the tax cuts announced in yesterday’s autumn statement:

As the Resolution Foundation notes, the £10bn of personal tax cuts announced by Jeremy Hunt are still dwarfed by the £45bn of already announced national insurance and income tax rises.

“As a result, households will on average be £1,200 worse off overall thanks to the changes announced in this parliament. Only those earning around £11,000 to £13,000, and £42,000 to £52,000, will be better off,” the think-tank said.

‘What’s the plan here?’: Hunt’s tax cuts risk ‘completely implausible’ public spending cuts, experts warn

10:24 , Andy Gregory

There is a “material risk” that Jeremy Hunt’s tax cuts will not be sustainable, and the cuts to public spending forecast as a result are “completely implausible”, experts have warned.

Paul Johnson, director of the IFS said: “These tax cuts have been ‘paid for’, in effect, by a bigger squeeze on the real-terms value of public service budgets and an even bigger squeeze on public investment, which is frozen in cash terms.

“There’s a material risk that those plans prove undeliverable and today’s tax cuts will not prove to be sustainable.”

Ian Mulheirn, an economist at the Resolution Foundation, was even blunter in his assessment.

He wrote on Twitter/X: “OBR draws out completely implausible implications - real terms cuts of 2.3-4.1%/yr after 2025 for unprotected departments.

“What’s the plan here? Abolish the criminal justice system and public transport maybe? This should be the debate, not ‘have they really cut taxes?”’

Households to be £1,200 worse off despite tax cuts in autumn statement, analysts say

10:17 , Andy Gregory

The Resolution Foundation said the £10bn of personal tax cuts in Jeremy Hunt’s autumn statement are far lower than the £45bn of national insurance and income tax rises already announced in this parliament.

Households will on average be £1,200 worse off overall because of the changes announced in this parliament, the think-tank said.

Chief executive Torsten Bell said: “The truth is, taxes are up not down. Today’s cuts are dwarfed by tax rises already underway. By the end of this decade, taxes are set to be up by the equivalent of £4,300 per household compared to 2019.”

Mr Bell said: “Worse, the giveaways announced today are funded by handing whoever wins the next election implausibly large spending cuts. Tax cuts to boost business investment are welcome, but undermined by plans to cut public investment by over a third - it’s hard to think of a more anti-growth policy.”

Hunt’s autumn statement ‘seemingly full of puzzles and paradoxes’, says OBR chief

10:05 , Andy Gregory

Jeremy Hunt’s autumn statement was “seemingly full of puzzles and paradoxes”, partly due to the impact of high inflation, Office for Budget Responsibility chief Richard Hughes has said – noting that the chancellor effectively allowed spending on public services to fall by £20bn.

“It seems to be an autumn statement where taxes are being cut but the tax burden is going up; where the autumn statement is boosting growth, but the economy is growing more slowly; the economy seems to be performing worse, but it’s generating more revenue for the chancellor,” he said.

Speaking at a Resolution Foundation event, Mr Hughes said: “We are not used to having unexpectedly high levels of inflation in the UK, it has been a long time since we’ve seen inflation in double digits.”

The chancellor benefited from the impact of higher wages on tax receipts, with the frozen thresholds resulting in millions more people dragged into the tax system or into higher bands.

While Mr Hunt pumped £5bn extra into public spending, “he would have had to add £25 billion” if he wanted to keep them the same in real terms, Mr Hughes said.

“So, what effectively he did is allow the real spending power on public services to fall by £20bn and instead he took the extra £30bn he got from what we call fiscal drag and basically gave it back to taxpayers in the form of a rate cut on NICs, and he gave it back to businesses in the form of full expensing in the corporate tax system.”

Hunt under fire over Tories ‘record tax cut' claim

09:59 , Andy Gregory

Jeremy Hunt has denied that it is fundamentally dishonest of the Tories to claim it is the largest tax cut ever for workers when the tax take is rising.

Asked the question, the Chancellor told BBC Radio 4’s Today programme: “I fundamentally disagree with that.”

He said “of course” taxes were going up “so we can pay down our Covid debt”.

Mr Hunt added: “But yesterday I did make a start in bringing down the tax burden. I’ve never said that we were going to get there all in one go.”

Yesterday, the Conservatives posted the claim on social media:

Hunt insists public spending freeze will not result in worse public services

09:54 , Andy Gregory

Jeremy Hunt has denied his decision not to increase public spending in line with inflation will result in worse public services.

Asked the question, the chancellor told Times Radio: “No, and the reason is very straightforward. If we want to have money to invest in the NHS, in schools, in our armed forces over the longer term, you have to grow the economy.

“That is the only way in the longer run that you can fund the cost of an ageing population and that’s why I took those decisions for the long term.

“In the short run, I am showing discipline with public spending. I think that is the right thing to do. We need a more productive state, not a bigger state.”

Hunt says tax cuts were ‘single biggest thing I could do for long-term growth'

09:51 , Andy Gregory

Jeremy Hunt has been doing the media rounds this morning in defence of his autumn statement.

Speaking to Times Radio, the chancellor insisted that the tax cuts he announced were “the single biggest thing I could do for long-term growth”.

Speaking from the Airbus factory in north Wales, Mr Hunt said he opted for national insurance and business tax cuts because they “will make the biggest difference to our long-term competitiveness”.

He said: “It’s a fundamental Conservative principle that we think you need to grow the cake before you have discussions about how you cut it up. I can make a start – and that’s what I did yesterday – in reducing the tax burden, but I’ve chosen to do it in a way that’s going to grow the economy.”

Jeremy Hunt hails biggest tax cuts since Thatcher but plans condemned as ‘not good for growth’

09:47 , Andy Gregory

Jeremy Hunt has fired the starting gun on the Conservatives’ general election campaign with what he hailed as the biggest package of tax cuts since the Thatcher era, including a boost for 27 million workers.

The chancellor announced a higher-than-expected 2 per cent reduction in national insurance contributions, which he said would save the average worker £450 a year.

But even as he was on his feet unveiling the plans, the Office for Budget Responsibility (OBR) sharply downgraded its economic forecasts, predicting lower growth and warning that inflation will stay higher for longer.

It also said Britain is still on course for the highest overall tax burden since the Second World War, despite Mr Hunt’s giveaways.

The chancellor declared his autumn statement would help “turbo-charge” the economy, but the Institute for Fiscal Studies (IFS) cautioned that his plans were bad for growth.

It came as:

• Mr Hunt made a £11bn-a-year tax break for firms permanent and cut taxes for the self-employed

• The chancellor maintained the triple lock, meaning state pensions will rise by 8.5 per cent

• He confirmed benefits would rise in line with September’s 6.7 per cent inflation figure

• He also extended a freeze on alcohol duty and boosted the living wage to £11.44 an hour

• But he unveiled a benefits crackdown campaigners warned will “punish” the disabled

• Rachel Reeves used The Independent’s Saatchi & Saatchi scoop to attack the Tories

For a quick recap of yesterday’s news, our lobby team has this comprehensive report:

Hunt hails biggest tax cuts since 1980s but plans condemned as ‘not good for growth’

09:44 , Andy Gregory

Good morning, and thanks for joining us on our politics liveblog this morning, which we’ll be using to bring you live updates with all the reaction to Jeremy Hunt’s autumn statement.

Wednesday 22 November 2023 20:18 , Jane Dalton

We are now putting our live coverage of the autumn statement on hold for this evening.

Comment: Sorry, Mr Hunt, I can’t raise a glass (of relatively cheap beer) to tax cuts

Wednesday 22 November 2023 20:15 , Jane Dalton

Sean O’Grady fears the bad times aren’t over:

Sorry, Mr Hunt, I can’t raise a glass (of relatively cheap) beer to your tax cuts

Pension pot for life idea 'would raise burden for employers’

Wednesday 22 November 2023 20:10 , Jane Dalton

Pension savers could have a “pot for life” under plans to tackle the problem of people building up lots of smaller pots when they move from job to job.

The Government wants to hear evidence on a lifetime provider model, which would allow people to have contributions paid into their existing pension scheme when they change employer, providing greater control over their pension.

Rachel Vahey, head of policy development at AJ Bell, said: “The biggest sticking point to these proposals is the burden on employers. Currently, UK firms of all sizes – from corner shops to multinationals – are required to set up a workplace pension scheme for their staff.

“This is already a significant administrative undertaking. But forcing both large and small businesses to connect to any pension scheme an employee chooses could significantly increase that burden.”

Watch: Hunt says Budget means biggest UK tax cuts since 1980s

Wednesday 22 November 2023 19:55 , Jane Dalton

Mr Hunt said the Budget meant the biggest tax cuts since the 1980s, but Paul Johnson, of the Institute for Fiscal Studies (IFS), said it was a “tiny bit cheeky”:

Tax projection calculator: See how autumn statement will affect you

Wednesday 22 November 2023 19:35 , Jane Dalton

The Independent’s Budget calculator, created by tax advisory firm Blick Rothenberg, below will help you to determine whether you are better or worse off following the autumn statement:

Tax projection calculator: See how Jeremy Hunt’s Budget will affect you

One Nation Tories praise ‘compassionate’ budget

Wednesday 22 November 2023 19:15 , Jane Dalton

Tory moderates in the One Nation group praised Mr Hunt. Deputy leader Stephen Hammond said the chancellor’s moves were both “fiscally responsible” and “compassionate” – pointing to the boost for living wage and benefits being uprated with a higher inflation figure.

“Today’s statement reflects the importance of controlling inflation but at the same time brings welcome relief to families and businesses,” he said.

House prices forecast to fall by thousands of pounds next year

Wednesday 22 November 2023 19:00 , Jane Dalton

House prices are set to fall by thousands of pounds next year as interest rates remain high, forecasters have said:

What Jeremy Hunt’s Autumn Statement means for house prices explained

IFS: Tax cuts ‘not recipe for good public finances management’

Wednesday 22 November 2023 18:44 , Jane Dalton

Jeremy Hunt’s tax cuts amid uncertain times are “not a recipe for good management of the public finances”, one of the UK’s top think tanks has warned.

The influential Institute for Fiscal Studies (IFS) said “the prudent thing to do” would have been to use the financial headroom to “build a larger buffer into his plans”. Instead Mr Hunt relied on the government’s “poorly designed and loose fiscal target” to pay for tax cuts that will hamstring whoever is chancellor after the next election, it said.

“That might make for good politics. It does not make for good policymaking,” IFS director Paul Johnson added.

In a scathing verdict on Mr Hunt’s autumn statement, Mr Johnson said: “There’s a material risk that those plans prove undeliverable and today’s tax cuts will not prove to be sustainable.”

And he noted that despite the significant cut to national insurance, “these tax cuts won’t be enough to prevent this from being the biggest tax-raising parliament in modern times”.

Hunt leaves ‘ticking time bomb of austerity' for next government

Wednesday 22 November 2023 18:42 , Jane Dalton

Stephanie Flanders, head of economics at Bloomberg, said the predicted spending cuts in future years would leave a “ticking time bomb” for whoever is in charge in the next parliament.

The Office for Budgetary Responsibility (OBR) said Jeremy Hunt had spent “virtually all” of the £27bn-worth of “fiscal headroom” – mainly on the £21bn cost of tax cuts, plus some more on the cost of welfare reforms.

It also warned that the windfall spent on tax cuts was “mainly a reflection of a £19.1bn erosion in the real value of departmental spending”.

The OBR said “a 2.3 per cent-a-year real-terms fall in day-to-day spending” would “present challenges” – polite speak for painful spending cuts.

Ian Mulheirn, an economist at the Resolution Foundation think tank, said it showed the “completely implausible implications” of the tax cuts.

Watch: Rachel Reeves quotes The Independent in clash with Hunt

Wednesday 22 November 2023 18:10 , Jane Dalton

Budget winners and losers

Wednesday 22 November 2023 17:50 , Jane Dalton

Winners and losers from Jeremy Hunt’s Autumn Budget 2023

Money-saving expert Martin Lewis’s snap verdict

Wednesday 22 November 2023 17:31 , Jane Dalton

Money-saving expert Martin Lewis said the cut to National Insurance goes some way to cover the cost of freezing tax thresholds but lamented the absence of Lifetime ISA reform:

Martin Lewis reveals snap verdict on budget as chancellor reveals ‘rabbit from hat’

Rishi Sunak’s £200bn stealth tax bombshell revealed

Wednesday 22 November 2023 17:17 , Jane Dalton

While Jeremy Hunt boasted about giving out the biggest tax cut since the 1980s, the official spending watchdog revealed Rishi Sunak would take in £200bn in a stealth tax bombshell.

The prime minister’s decision to freeze the threshold at which people pay national insurance and other taxes will cost £200bn in the next six years, the Office for Budget Responsibility said.

In a budget which many said would give with one hand while taking with the other, the cost of “personal tax threshold measures” was laid bare.

Freezing tax thresholds drags more people into paying tax, and means those that do are pulled into higher tax bands as their pay rises with inflation.

This financial year the decision to freeze tax thresholds will cost £12.4bn, with that figure climbing to £44.6bn by 2028-29.

What autumn statement means for benefits

Wednesday 22 November 2023 17:00 , Jane Dalton

From universal credit to pensions and a fresh crackdown on benefit claimants who do not find work within 18 months, here are the effects on state benefits:

What does Jeremy Hunt’s autumn statement mean for your benefits?

IFS: Hunt tax cuts are ‘not a recipe for good management of the public finances’

Wednesday 22 November 2023 16:45 , Matt Mathers

Jeremy Hunt’s tax cuts amid uncertain times are “not a recipe for good management of the public finances”, one of the UK’s top think tanks has warned, Archie Mitchell reports.

The influential Institute for Fiscal Studies (IFS) said “the prudent thing to do” would have been to use the financial headroom to “build a larger buffer into his plans”. Instead Mr Hunt relied on the government’s “poorly designed and loose fiscal target” to pay for tax cuts which will hamstring whoever is chancellor after the next election, it said.

“That might make for good politics. It does not make for good policymaking,” IFS director Paul Johnson added.

In a scathing verdict on Mr Hunt’s autumn statement, Mr Johnson said: “There’s a material risk that those plans prove undeliverable and today’s tax cuts will not prove to be sustainable.”

And he noted that despite the significant cut to national insurance, “these tax cuts won’t be enough to prevent this from being the biggest tax raising parliament in modern times”.

How Hunt - one of UK’s richest politicians - made his money

Wednesday 22 November 2023 16:29 , Jane Dalton

Prior to his career in parliament, Mr Hunt attended Charterhouse School in Godalming and received a first-class degree in philosophy, politics and economics at Oxford before working as an English teacher in Japan.

In 1991, aged 25, he co-founded a business with a childhood friend:

How did chancellor Jeremy Hunt make his money?

James Cleverly denies claims he called Stockton North a s***hole

Wednesday 22 November 2023 16:13 , Matt Mathers

Home secretary James Cleverly has denied claims that he called a Labour MP’s constituency a “shithole”.

Alex Cunningham, MP for Stockton North, alleged the comment was made during Prime Minister’s Questions.

Speaking in the Commons later, the Labour MP for Stockton North called out the Home Secretary and demanded an apology.

Mr Cleverly’s spokesman said: “He did not say that, and would not. He’s disappointed people would accuse him of doing so.”

Ben Hatton reports:

James Cleverly denies claims he called Stockton North a s***hole

Has Hunt set ‘ticking time bomb’ of austerity for Labour government?

Wednesday 22 November 2023 16:03 , Matt Mathers

The Office for Budget Responsibility (OBR) said the chancellor Jeremy Hunt has spent “virtually all” of the £27bn-worth of “fiscal headroom” – mainly on the £21bn cost of tax cuts, plus some more on the cost of welfare reforms, writes Adam Forrest.

But the OBR also warned that the windfall spent on tax cuts “is mainly a reflection of a £19.1bn erosion in the real value of departmental spending.”

The OBR said “a 2.3 per cent a year real terms fall in day-to-day spending” would “present challenges” – polite speak for painful spending cuts.

So does it mean austerity ahead? Ian Mulheirn, an economist at the Resolution Foundation think tank said it showed the “completely implausible implications” of the tax cuts.

Stephanie Flanders, head of economics at Bloomberg, said it left a “ticking time bomb” for whoever is in charge in the next parliament.

Reminder: Ask Sean O’Grady anything about the autumn statement

Wednesday 22 November 2023 15:41 , Matt Mathers

The Independent’s associate editor Sean O’Grady is on hand to explain how tax cuts and benefits reforms could affect your wallet and confidence in the Tory party.

Register to submit your question in the comments box under this article. If you’re not already a member, click “sign up” in the comments section to leave your question. For a full guide on how to comment click here.

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Ask Sean O’Grady anything about the Autumn Budget

Marie Curie: People who are dying are to unwell to work

Wednesday 22 November 2023 15:34 , Matt Mathers

People who are dying are too unwell to work, cancer charity Marie Curie has said as it criticised a lack of targeted support for the terminally ill.

The charity welcomed Jeremy Hunt’s decision to raise benefits in line with inflation but said canncer patients needed more help with their energy bills.

Dr Sam Royston, Marie Curie executive director of policy and sesearch, said: The chancellor said that the best way to tackle poverty is through work.

“Simply put, many people who are dying are too unwell to work and will die before they are old enough to claim their State Pension. They needed more targeted support today. Particularly with energy bills.

“Any suggestion that people with a terminal illness would be forced back to work would be inhumane.

The government must confirm that, regardless of what reforms are introduced to Work Capability Assessments, all terminally ill people will be exempt from having to look for work.”

National insurance cut will not help low or high earners

Wednesday 22 November 2023 15:22 , Matt Mathers

The IFS said Mr Hunt’s national insurance cut was largely or entirely offset by the impact of his and Mr Sunak’s tax threshold freezes, Matt Mathers and Archie Mitchell report.

The influential think tank said full-time minimum wage employees, earning £20,800 per year, will only gain £165 per year from the cut, while being hit by £413 in so-called stealth taxes.

It said a full-time worker earning the average salary of £35,000 per year will gain £449 from the cut, which will be almost wiped out by £413 in extra tax due to frozen thresholds.

And a high earner on £60,000 per year will pay more than twice as much additional tax as what they save on national insurance contributions.

IFS director Paul Johnson said average earners will benefit “slightly” from the change while “low earners and high earners will still be worse off”.

Failure to tackle social care crisis shameful, say unpaid carers

Wednesday 22 November 2023 15:16 , Matt Mathers

It’s "shameful" Mr Hunt’s statement did not tackle the crisis in social care, according to a charity for unpaid carers, Jane Dalton reports.

Kirsty McHugh, head of the Carers Trust, said: "More than 100 measures were announced in the Autumn Statement and it is shameful that not one of them gets anywhere near easing a social care crisis that is causing so much suffering for so many. The system remains starved of investment and still has no long-term funding plan.

“For a chancellor who claims the best way to tackle poverty is through work, it’s scandalous that there is next to nothing in his Autumn Statement to help make that a reality for unpaid family carers. There are around seven million of them in the UK and many are being driven into poverty by having to give up paid work so they can look after loved ones."

Big spending cuts on the way, warns IFS

Wednesday 22 November 2023 15:15 , Jane Dalton

Paul Johnson of the Institute for Fiscal Studies (IFS) has pointed out that Jeremy Hunt announced a “long-term cash freeze in investment spending”, saying it was a “significant real cut” and “not good for growth”.

The IFS economist also said the 1 per cent per year increase in resource spending was “incredibly tight” and would mean “a lot of public services will see cuts”.

Mr Johnson said the autumn statement meant another year of very tight spending and left the long-term tax burden at the same record level.

He added: “Cut in tax rates today [will be] paid for by uncertain spending restraint tomorrow.”

Watch: Rachel Reeves quotes The Independent during Budget clash with Jeremy Hunt

Wednesday 22 November 2023 14:58 , Matt Mathers

Rachel Reeves has called time on Rishi Sunak’s government, declaring that “the ravens are leaving the tower” as she highlighted The Independent’s revelation that Saatchi & Saatchi was no longer backing the party

The shadow chancellor used The Independent’s disclosure that Richard Huntington, strategy chief of the advertising firm that helped Margaret Thatcher become prime minister, to attack the “cruel” Conservatives and forecast a Labour election victory in response to Jeremy Hunt’s autumn statement.

Watch the clip here:

Rachel Reeves quotes The Independent during Budget clash with Jeremy Hunt

Hunt missed chance to drive nature renewal, says RSPB

Wednesday 22 November 2023 14:53 , Jane Dalton

The RSPB has accused Jeremy Hunt of missing an opportunity.

Jeff Knott, director of policy and advocacy at the bird and wildlife charity, said: “Nature is in crisis, yet the UK government is silent. With barely a word in the Autumn Statement about actions to tackle the nature and climate emergency, it is hard to see how we can get nature’s recovery on track in time for 2030.

“The natural world underpins everything in our lives, including the economy, and there is strong evidence to show that investing in nature improves our long-term economic performance.

“This was a chance for Chancellor Jeremy Hunt to prove that the UK government is committed to promises made to protect and restore 30% of our land and sea by 2030.

“There was rightly a push for better infrastructure and housing, but there was nothing about how these can help drive nature’s renewal.”

Sunak decision 'may delay switch to electric vehicles’

Wednesday 22 November 2023 14:50 , Jane Dalton

Buried in the OBR forecasts is a warning that Rishi Sunak’s decision to delay a ban on new petrol and diesel car sales “may result in some consumers delaying a switch to EVs”.

The spending watchdog said another law, the Zero Emission Vehicle (ZEV) mandate, is now the main driver of people transitioning to electric cars.The mandate sets a minimum share of cars and vans sold by each manufacturer to be zero emission.

As a result of the changes, and slower than expected take-up of electric vehicles so far, the OBR has significantly lowered its forecast for the speed of the transition away from petrol and diesel cars.

Taxes still set to hit post-war high – OBR

Wednesday 22 November 2023 14:44 , Jane Dalton

The tax burden is still on course to hit a post-war high, the Office for Budget Responsibility has confirmed.

Despite Jeremy Hunt’s claiming to have delivered the biggest tax cut since the 1980s, the official forecaster said the tax burden would rise every year to a post-war high by 2028-29.

The OBR said: “Tax changes in this autumn statement reduce the tax burden by 0.7 per cent of GDP but it still rises every year to a post-war high of 37.7 per cent of GDP by 2028-29.

The news will enrage right-wing Tory MPs, who have piled pressure on Mr Hunt over rising taxes.

‘Cynical attack’ on disability benefits will be devastating, say charities

Wednesday 22 November 2023 14:31 , Jane Dalton

A coalition of disability charities says the government is attacking those on disability benefits by introducing harsh measures designed to encourage them back to work.

Anastasia Berry, of the consortium and MS Society, said the plans would “deprive people with severe health problems of £390 a month and push more disabled people into poverty in the middle of a cost-of-living crisis”.

She added: “The government claims a radical shift towards home-working since the pandemic can justify removing support for those with mobility issues. But only one in ten jobs advertised this year have offered this option.”

Hunt cheeky to claim biggest business tax cut, says IFS

Wednesday 22 November 2023 14:23 , Jane Dalton

Paul Johnson, the director of the Institute for Fiscal Studies (IFS), said it was a “tiny bit cheeky” of Jeremy Hunt to claim he had delivered “the biggest business tax cuts in modern British history”.

The respected economist pointed out that today’s measures were “in part designed explicitly to offset a much bigger (in long term) corporation tax increase”.

Reeves: Has inheritance tax cut been delayed or abandoned?

Wednesday 22 November 2023 14:21 , Jane Dalton

Rachel Reeves has urged Jeremy Hunt to confirm whether a widely briefed inheritance tax cut has been delayed or abandoned.

The shadow chancellor said Mr Hunt had spent two weeks “marching Tory MPs up a hill only to march them down again on inheritance tax”.

It was reported that the chancellor was considering halving the rate but that an announcement has now been delayed until the spring Budget.

“So can the chancellor tell the house today: is cutting inheritance tax a decision delayed or a decision abandoned?” Ms Reeves asked.

Mr Hunt did not speak for a second time after delivering his Budget.

House prices to fall 4.7% next year, say OBR experts

Wednesday 22 November 2023 14:19 , Jane Dalton

House prices are expected to grow marginally by 0.9% this year, but then drop by 4.7% next year, according to the Office for Budget Responsibility.

Hunt claims he has delivered biggest tax cut since 1980s

Wednesday 22 November 2023 14:11 , Jane Dalton

Jeremy Hunt claimed to have delivered the biggest tax cut since the 1980s, as he boasted that the British economy had “turned a corned” under his watch.

Mr Hunt told the Commons – as Rishi Sunak grinned behind him – “I’ve today delivered the biggest business tax cuts in modern British history.”

He finished his autumn statement by saying: “We are delivering the biggest business tax cut in modern British history, the largest ever cut to employee and self-employed National Insurance and the biggest package of tax cuts to be implemented since the 1980s.”

Tory mismanagement has left working families exposed, claim Labour

Wednesday 22 November 2023 14:07 , Jane Dalton

Working families have been “skating on thin ice for too long”, Labour said.

Shadow chancellor Rachel Reeves said: “The Chancellor and the Prime Minister say that the cost of living crisis is dealt with. Now everything might look a little bit better 10,000ft up in your helicopter, but down here on planet Earth people are approaching Christmas and the year ahead with worry and trepidation.

“The cost-of-living crisis has hit us harder because Tory mismanagement has left us so exposed, 11 million UK households don’t have enough savings to cover three weeks of living expenses if they needed it.

“Working families have been skating on thin ice for too long and as their resilience has been eroded, so has our national economy’s.”

Reeves: ‘Even Saatchi and Saatchi are saying the Tories are not working'

Wednesday 22 November 2023 13:57 , Matt Mathers

Rachel Reeves has said the “ravens are leaving the tower” when Saatchi and Saatchi “are saying the Tories are not working.”

The shadow chancellor said “Britain can not afford another five years of Conservatives” as she attacked the government’s record on the economy.

“Mr Speaker, the ravens are leaving the tower when even Saatchi and Saatchi are saying the Tories are not working,” she told MPs.

Earlier this month The Independent reported that Saatchi and Saatchi, the ad agency behind Margaret Thatcher’s “Labour isn’t working” attack, was predicting a win at the next election for Keir Starmer’s party.

Read more here:

Boss of ad agency that helped Thatcher win attacks ‘cruel’ Tories

'Taxes will be higher at next election than last one’

Wednesday 22 November 2023 13:48 , Jane Dalton

Taxes will be higher at the next election than they were at the last, shadow chancellor Rachel Reeves has said.

She told the Commons that she has “long argued that taxes on working people are too high”.

She said: “From their failure to uprate income tax or national insurance bands, to forcing councils to raise council tax, the Conservatives have pushed the costs of their failure onto others.

“But the British people won’t be taken for fools. They know that what has been announced today owes more to the cynicism of a party desperate to cling onto power than the real priorities of this high-tax, low-growth Conservative Government.

“So I think we can forgive taxpayers for not celebrating when they see the truth behind today’s announcements. Going into this statement the Government had already put in place tax increases worth the equivalent of a 10p increase in national insurance.

“So today’s 2p cut will not remotely compensate for the tax (increases) already put in place by this Conservative Government. The fact is that taxes will be higher at the next election than they were at the last.”

UK inflation to stay higher for longer, OBR confirms

Wednesday 22 November 2023 13:47 , Matt Mathers

The Office for Budget Responsibility has revised up its forecasts for inflation in the UK, Archie Mitchell reports.

After predicting in March that the rate of price rises would fall rapidly from a peak last year toward the Bank of England’s 2 per cent target by early 2024, it has now said it will stay higher for longer.

The OBR said it will take until the second quarter of 2025 to return to the 2 per cent target, more than a year later than it forecast in March.

Working people worse off under Tories - Reeves

Wednesday 22 November 2023 13:42 , Matt Mathers

Working people are “worse off” despite the government’s promises, shadow chancellor Rachel Reeves told the Commons.

After describing the “damage” caused by the Conservatives, she said: “Nothing that has been announced today will remotely compensate.

“Mortgages rising, taxing eating into wages. Inflation high, with prices still going up in the shops. Public services on their knees. And too many families struggling to make ends meet.

“As the sun begins to set on this divided, out-of-touch, weak Government, the only conclusion that the British people will reach is this: after 13 years of Conservatives the economy is simply not working, and despite all the promises today, working people are still worse off.”

Reeves: Growth has hit a dead end under the Conservatives

Wednesday 22 November 2023 13:40 , Matt Mathers

Speaking in the Commons following the autumn statement, shadow chancellor Rachel Reeves said: “Today the chancellor has lifted the lid on 13 years of economic failure.

“The chancellor claims that the economy has turned a corner, yet the truth is under the Conservatives growth has hit a dead end.

“What has been laid bare today is the full scale of the damage that this government has done to our economy over 13 years.”

Chancellor’s budget ‘not good for growth’

Wednesday 22 November 2023 13:39 , Archie Mitchell

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

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.”

Homelessness charity Crisis say ‘no room for complacency’ after housing benefit uplift

Wednesday 22 November 2023 13:39 , Matt Mathers

Crisis have welcomed the chancellor’s decision to uprate housing benefit for the first time in three years, saying it is "in the short term, the single biggest step the chancellor could take to prevent and end homelessness for tens of thousands of households”, Holly Bancroft reports.

“The three-year freeze on housing benefit has had devastating and far-reaching consequences, with people on the lowest incomes being completely priced out of renting," chief executive Matt Downie said.

However he warned: “While the chancellor’s decision to tackle homelessness in the short-term is a positive step, there is no room for complacency. The next UK government must sustain this investment, otherwise we will see homelessness rise again.”

Disability charity: Autumn statement ‘gives with one hand and takes with another’

Wednesday 22 November 2023 13:37 , Matt Mathers

Disability charity Sense has criticised Jeremy Hunt for "heaping pressure onto disabled people to find work", Holly Bancroft reports.

They said the autumn statement had "given with one hand and taken away with the other".

Although they praised the uprating of benefits with inflation, chief executive Richard Kramer said it "doesn’t address the fact that payments are currently too low for many disabled people to live healthy, dignified lives".

Rachel Reeves: Nothing that has been announced today will compensate for years of Tory ‘failure'

Wednesday 22 November 2023 13:34 , Matt Mathers

Rachel Reeves, the shadow chancellor, is responding to the autumn statement.

She says nothing that has been announced today will compensate for years of Tory “failure”.

Rachel Reeves has lashed out at Jeremy Hunt’s autumn statement, saying “nothing that has been announced today will compensate” for years of Tory failure.

“The centrepiece of today’s autumn statement is a cut in the headline rate of national insurance,” the shadow chancellor said.

She added: “I’m old enough to remember when the Prime Minister wanted to put up national insurance as recently as January last year.”

“It was a tax on working people, and we opposed it for that very reason,” Ms Reeves said.

Homelessness sector pleased with Local Housing Allowance uplift

Wednesday 22 November 2023 13:31 , Matt Mathers

Rich Henderson, CEO at Homeless Link, the membership body for homeless services in England said, he was "pleased" that Jeremy Hunt had uplifted the Local Housing Allowance, Holly Bancroft reports.

"It’s no secret that homelessness and rough sleeping are spiralling while local authority and charity services are buckling under the pressure. Raising LHA will at least mean people on low incomes have more breathing space, allowing them to access more affordable housing options while helping prevent homelessness caused by rent arrears," he said.

He criticised increased benefit sanctions, saying they are "not effective in helping people into work".

Boost for millions as national insurance is cut by 2 percentage points

Wednesday 22 November 2023 13:28 , Matt Mathers

Jeremy Hunt has announced a cut to national insurance in a boost to around 28 million people, Archie Mitchell reports.

Despite saying only two months ago that slashing tax rates was “virtually impossible”, Mr Hunt has reduced the rate of the levy by two percentage points.

For those who earn less than £12,570 a year, it will make no difference because the lowest-paid don’t pay into National Insurance.

Workers earning up to £50,200 currently pay 12 per cent in national insurance, while the self-employed pay 9 per cent.

But it means somebody on the average salary of £35,000 will save more than £450 a year

Wine and spirits industry welcomes alcohol duty freeze

Wednesday 22 November 2023 13:24 , Matt Mathers

The wine and spirits industry has welcomed the freeze to alcohol duty, saying it comes as “a huge relief” to a sector that has “taken a battering”.

Wine and Spirit Trade Association chief executive Miles Beale said: “The alcohol duty freeze comes as a huge relief to wine and spirit businesses and the hospitality sector who have taken a battering over the last few years.

“Following the introduction of an entirely new alcohol tax regime and huge hike in August, the latest data shows a worrying decline in sales, which concerns businesses of all sizes and which would result in less revenue for the Exchequer.

“A second duty rise would have been disastrous.

“We are pleased that the frustrations of consumers, who are fed up with never ending price rises, and of businesses struggling with the cost and complexities of the new system have been heeded.

“These are ongoing concerns about the impact of the new regime, which need to be kept under review. We implore the chancellor and his team to lock in the freeze until at least the end of this parliament. This will keep people in jobs and mean consumers will still be able to enjoy a drink at a price they can afford.”

Jeremy Hunt and Mel Stride confirm new benefits crackdown

Wednesday 22 November 2023 13:23 , Matt Mathers

Jeremy Hunt and work and pensions secretary Mel Stride have launched a new crackdown on benefit claimants who do not find work within 18 months, Archie Mitchell reports.

The chancellor and Mr Stride will cut payments by thousands of pounds to those who do not comply with new rules.

But ministers have been criticised for trying to “punish” disabled people and those with mental health issues back into work by encouraging them to work from home.

The government has also been slammed for threatening to cut off free prescriptions and dental treatment, help from energy suppliers and cheaper mobile phone packages for those on universal credit.

Mr Hunt said the measures will halve the number of people who are signed off work with no requirement to look for work.

Those who do not find a job after 18 months will then be given six months before their payments are cut off.

NI boost for self-employed

Wednesday 22 November 2023 13:21 , Matt Mathers

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.”

Business rates relief extended and tax breaks on investment made permanent

Wednesday 22 November 2023 13:19 , Matt Mathers

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.

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

Wednesday 22 November 2023 13:16 , Matt Mathers

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.

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

Office for Budget Responsibility confirms GDP growth downgrade

Wednesday 22 November 2023 13:14 , Matt Mathers

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.

A pension pot for life

Wednesday 22 November 2023 13:10 , Matt Mathers

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”.

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

Wednesday 22 November 2023 13:09 , Matt Mathers

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.

Wednesday 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:

Jeremy Hunt takes ‘copy and paste’ swipe at Rachel Reeves during autumn statement

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

Wednesday 22 November 2023 13:05 , Matt Mathers

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.

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

Wednesday 22 November 2023 13:00 , Matt Mathers

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.

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

Wednesday 22 November 2023 12:57 , Matt Mathers

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.”

UK on target to get debt falling, Hunt says

Wednesday 22 November 2023 12:52 , Matt Mathers

The chancellor said the UK would meet its goal of having debt falling as a percentage of GDP.

Jeremy Hunt told the Commons that the economy had “outperformed expectations” since last year’s autumn statement, adding: “We therefore meet our fiscal rule to have underlying debt falling as a percentage of GDP in the final year of the forecast, with double the headroom compared to the OBR’s March forecast.

“And we continue to have the second lowest government debt in the G7 – lower than the United States, Canada, France, Italy or Japan.”

Jeremy Hunt freezes alcohol duty

Wednesday 22 November 2023 12:48 , Matt Mathers

The chancellor has announced a freeze on alcohol duty, Archie Mitchell reports.

The duty on many spirits and wines rose in August in the first increase since 2020 – but the chancellor has now frozen the rate under pressure from the hospitality industry.

It will remain frozen until next August and Jeremy Hunt also reaffirmed the government’s so-called Brexit pubs guarantee, meaning pints in pubs are taxed less than those bought from shops.

Triple lock saved

Wednesday 22 November 2023 12:46 , Matt Mathers

The chancellor announced that the state pension will rise by 8.5 per cent from April, in line with the so-called ‘triple-lock’, Kate Devlin reports.

The pledge was brought in by David Cameron when he was prime minister.  It means the rate is increased by average earnings, inflation or 2.5 per cent – whichever is highest.

The chancellor had considered “tweaking” the formula, to strip out bonuses, a move that would have allowed him to increase pensions by 7.8 per cent.

But that prompted negative headlines and an internal row within the Conservative party.

In-work benefits rise with inflation at 6.7 per cent

Wednesday 22 November 2023 12:45 , Matt Mathers

Jeremy Hunt also confirmed in-work benefits will rise in line with September’s inflation figure of 6.7 per cent, Archie Mitchell reports.

The chancellor had considered using the lower 4.6 per cent inflation figure from October to uplift inflation, in a bid to save £3bn.

But on Wednesday Mr Hunt confirmed those claiming the benefits would see their rate increased in line with September’s higher figure as usual.

Mr Hunt said it would represent an increase of £470 for 5.5 million households next year, describing it as "vital support to those on the very lowest incomes".

Hunt expresses horror at attack on Israeli citizens

Wednesday 22 November 2023 12:44 , Matt Mathers

Chancellor Jeremy Hunt expressed his “horror” at the attack on Israeli citizens on October and the subsequent loss of life on both sides.

He said: “I am deeply concerned about the rise of antisemitism in our country, so I am announcing up to £7 million over the next three years for organisations like the Holocaust Educational Trust to tackle antisemitism in schools and universities.

“I will also repeat the £3 million uplift to the Community Security Trust.

“When it comes to antisemitism and all forms of racism, we must never allow the clock to be turned back.”

Hunt: We’ll reduce debt, cut taxes and reward work

Wednesday 22 November 2023 12:43 , Matt Mathers

The government will “reduce debt, cut taxes and reward work”, the Chancellor said.

Jeremy Hunt told the Commons: “In today’s autumn statement for growth our choice is not big government, high spending and high tax because we know that leads to less growth, not more.

“Instead we reduce debt, cut taxes and reward work.

“We deliver world class education. We build domestic sustainable energy.

“And we back British business with 110 growth measures – don’t worry, I’m not going to go through them all – which remove planning red tape, speed up access to the national grid, support entrepreneurs raising capital, get behind our fastest growing industries, unlock foreign direct investment, boost productivity, reform welfare, level up opportunity to every corner of the country, and cut business taxes.”

Our plan is working, claims Hunt – who starts with joke about his wife

Wednesday 22 November 2023 12:40 , Matt Mathers

Jeremy Hunt started his autumn statement by claiming: “Our plan for the British economy is working, but the work is not done”, Adam Forrest reports.

“We have supported families with rising bills, cut borrowing and halved inflation. The economy has grown. Real incomes have risen,” said the chancellor.

He said the Conservatives “reduce debt, cut taxes and reward work” and said his party “know that a dynamic economy depends less on the decisions and diktats of ministers than on the energy and enterprise of the British people”.

Mr Hunt also started his speech with a joke. “It’s my wife’s birthday. Unlike me, she’s looking younger every year.”

Hunt begins autumn statement

Wednesday 22 November 2023 12:38 , Matt Mathers

Chancellor Jeremy Hunt said the government’s plan for the British economy is “working” but added that the “work is not done”, as he began his autumn statement.

‘He’s through the looking glass this one'

Wednesday 22 November 2023 12:37 , Matt Mathers

Starmer says increased waiting lists are not evidence of the government “getting things done”, as Sunak claimed at the end of his last answer.

“He’s through the looking glass this one,” he adds.

The Labour leader then reminds MPs that Sunak did not answer how many people were on mental health waiting lists.

He says Sunak knows the answer but doesn’t want to give it - “1.2 million, 200,000 are children”.

Starmer adds some of those children have been waiting two years.

Starmer hits out at claim statement will ‘turbo charge’ economy

Wednesday 22 November 2023 12:31 , Matt Mathers

Keir Starmer has hit out at Jeremy Hunt’s claim his autumn statement will “turbo charge” economic growth, Kate Devlin reports.

The Labour leader slammed high NHS waiting lists, which he said were holding the country back.

AT PMQs he asked Rishi Sunak how if a worker has “to wait a year for an operation … are they supposed to grow the economy?”

He also condemned the high numbers waiting for mental health care.

This includes 200,000 children with some waiting nearly two years to be seen.

Sunak attacks NHS in Wales

Wednesday 22 November 2023 12:29 , Matt Mathers

Sunak dodges the question, saying record sums have been invested in mental health services.

The PM then says the “union action he fails to condemn” has had an effect on the health services - several hundred thousand appointments being cancelled.

He adds that in Wales, over 70,000 people are waiting over 18 months for treatment.

Sunak says these sorts of waits have been eliminated in England.

‘He really needs to take some responsibility'

Wednesday 22 November 2023 12:22 , Matt Mathers

Starmer fires back, saying more than double the entire population of Wales is on a waiting list in England.

“He really needs to take some responsibility”, he adds.

The Labour leader then asks Sunak how many people are on mental health waiting lists.

Sunak: We’re doing an ‘enormous' amount on NHS waiting lists

Wednesday 22 November 2023 12:20 , Matt Mathers

Sunak says the government has done an “enormous amount” to tackle NHS waiting lists.

He says the government has broadened patient choice and introduced new diagnostic centres and put new doctors and nurses on wards.

PM goes on the attack over the NHS in Wales, where Labour is in charge.

He says that, after 25 years in power, the NHS there is missing “every one one of his targets”.

Starmer: half a million more on waiting lists

Wednesday 22 November 2023 12:15 , Matt Mathers

Starmer hits back saying the reason Sunak left out the NHS is because 7.8 million people are currently on waiting lists.

He says that’s “half a million more” than when the PM first pledged to reduce them nearly a year ago.

The Labour leader then asks how a labourer or a carer is able to help grow the economy if they are having to wait a year for an operation on the health service.

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