Chancellor Jeremy Hunt MP has presented his plan to stabilise the UK economy to Parliament. The Autumn Statement comes as the UK enters what is expected to be its longest recession since records began, and as inflation reaches its highest level in over forty years. Announcing the statement to the House of Commons, the Chancellor said his priorities are “stability, growth and protecting public services”.
Here’s our rundown of today’s key announcements:
Confirmation of £30 billion in spending cuts and £24 billion in tax increases.
The OBR has forecast that the UK economy will shrink by 1.4% in 2023. The Chancellor said that the OBR forecast gross domestic product to grow by 1.3% in 2024.
The Treasury will freeze thresholds for Income Tax and National Insurance until 2028 and will lower tax free allowances on Dividends and Capital Gains tax from April 2023.
The National Living Wage has increased from £9.50 an hour to £10.42 an hour.
From April 2023, the point at which the highest earners start paying the top rate of tax (45%) will be lowered to £125,000 from £150,000.
Jeremy Hunt MP has also announced a 10% rise in the state pension, benefits and tax credits in line with inflation.
Stamp Duty cuts announced in the Growth Plan will now be time-limited, ending on 31 March 2025.
Having insisted that his Autumn Statement would be “compassionate”, the Chancellor announced that the energy price guarantee will remain in place beyond April, but the cap will rise to £3,000 with further targeted cost of living payments to be made.
Mr Hunt announced that government spending will continue to increase in real terms every year for the next five years, but at a slower rate.
The Barnett Consequential for Northern Ireland under the Chancellor’s plan will be £650 million.
The Treasury also committed £2 million for the Department for International Trade to host a Northern Ireland Trade and Investment Event in 2023 to showcase the region as an attractive and vibrant place to do business, and to help drive new mobile investment to the economy.