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
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Your support makes all the difference.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?”
What does the Autumn Budget mean for my money and the Tory party? Ask Sean O’Grady anything
Why now is the time for Jeremy Hunt to rescue the high street
What tax cuts can we expect, and will they make it harder for Labour?
Budget: What’s in and out of Jeremy Hunt’s autumn statement?
Hunt promises 110 measures for growth as he seeks to boost Tory election hopes
Sunak decision 'may delay switch to electric vehicles’
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.
Hunt missed chance to drive nature renewal, says RSPB
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.”
Watch: Rachel Reeves quotes The Independent during Budget clash with Jeremy Hunt
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
Shadow Chancellor Rachel Reeves attacked Jeremy Hunt’s announcements, stating Britain is worse off now than when the Conservatives won power in 2010. Ms Reeves highlighted The Independent’s disclosure that Richard Huntington, strategy chief of Saatchi and Saatchi, the advertising firm that helped Margaret Thatcher become Prime Minister, had attacked the “cruel” Conservatives and forecast a Labour election victory. Ms Reeves said: “The ravens are leaving the Tower when even Saatchi and Saatchi are saying the Tories are not working.” Her comment was a reference to Saatchi and Saatchi’s famous 1979 election poster attacking unemployment under the then Labour Government which featured a picture of a long dole queue with the slogan ‘Labour Isn’t Working.’
Big spending cuts on the way, warns IFS
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.”
Failure to tackle social care crisis shameful, say unpaid carers
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."
National insurance cut will not help low or high earners
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”.
Marie Curie: People who are dying are to unwell to work
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.”
Reminder: Ask Sean O’Grady anything about the autumn statement
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.
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Don’t worry if you can’t see your question – they may be hidden until Sean joins the conversation to answer them. Then join us live on this page at 5pm as Sean tackles as many questions as he can:
Ask Sean O’Grady anything about the Autumn Budget
The Independent’s associate editor Sean O’Grady is on hand to explain how planned tax cuts and benefits reforms could affect your wallet and confidence in the Tory party
Has Hunt set ‘ticking time bomb’ of austerity for Labour government?
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.
James Cleverly denies claims he called Stockton North a s***hole
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
Stockton North MP Alex Cunningham demanded apology in the Commons from home secretary
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