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 19:15 · Jane Dalton]

One Nation Tories praise ‘compassionate’ budget

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.

[22 November 2023 19:35 · Jane Dalton]

Tax projection calculator: See how autumn statement will affect you

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:

[22 November 2023 19:55 · Jane Dalton]

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

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”:

[22 November 2023 20:10 · Jane Dalton]

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

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.”

[22 November 2023 20:15 · Jane Dalton]

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

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

[22 November 2023 20:18 · Jane Dalton]

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

[23 November 2023 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.

[23 November 2023 09:47 · Andy Gregory]

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

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:

[23 November 2023 09:51 · Andy Gregory]

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

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.”

[23 November 2023 09:54 · Andy Gregory]

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

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.”