Chancellor of the Exchequer Jeremy Hunt said ‘stability, growth and public services’ were the government’s priorities in his Autumn Statement which he presented to the House of Commons this morning.

In his first Autumn Statement since he was appointed Chancellor, Mr Hunt announced tax rises and spending cuts in an effort to tackle the cost of living crisis, but also emphasised the need to protect the vulnerable and be ‘compassionate’.

He said in his statement: ‘Today we deliver a plan to tackle the cost of living crisis and rebuild our economy. Our priorities are stability, growth and public services. We also protect the vulnerable because to be British is to be compassionate. We are not alone in facing these problems but today we respond to an international crisis with British values. We are honest about the challenges and we are fair in our solutions. Our plan lead to a shallower downturn, lower energy bills, higher growth and a stronger NHS and education system.’

In contrast to his predecssor, Mr Hunt has allowed the Office for Budget Responsibility to review his plans and has already issued a response to the Autumn Statement. It has declared the UK to be in recession and predicts that the economy will shrink in 2023 by 1.4%. It has also predicted that the inflation rate will be 7.4% next year and unemployment will rise from 3.6% to 4.9% in 2024.

The Key Points

- Minimum wage will rise next April from £9.50 to £10.42 an hour for anyone over the age of 23

- State pension and means-tested and disability benefits will increase by 10.% in line with inflation

- Top 45% additional rate of income tax will be paid on earnings over £125,14. It is currently only paid on earnings over £150,000

- Income tax personal allowance, National Insurance, inheritance tax and higher rate thresholds frozen for a further two years

- Tax-free allowances for dividends and capital gains tax will be cut

- Local councils in England will be able to raise council tax by up to 5% a year without a local vote

- The energy price cap will be extended for one year after April at £3,000 a year.

- Households on means-tested benefits will get £900 support package next year. Pensioners will be given £300 and those on disability benefits £150.

- Windfall tax on oil and gas profits increase from 25% to 35%

- From January, a new 45% tax on electricity-generating companies will be enforced

- Scheduled public spending will be maintained until 2025

- Spending on NHS and school will increase by billions of pounds

- Defence spending maintained at 2% of national income

- Overseas spending kept at 0.5%

- Billions of pounds to support those paying business rates

- Import taxes removed on more than 100 products

- Lifetime cap on social care costs in England delayed by two years

- Social house rent increases capped at 7% in England

- Electric vehicles to pay road tax from April 2025