Jeremy Hunt is preparing to deliver his Autumn Statement, with Westminster awash with rumours over what it may contain.

Speaking after Prime Minister’s Questions on Wednesday afternoon, the Chancellor will announce any tax or spending changes by the UK Government.

Shadow chancellor Rachel Reeves will respond first in the Commons, followed by an SNP representative, and then other MPs who will ask questions.

After the speech, the independent Office for Budget Responsibility (OBR) will publish a report on how the economy is doing and its forecasts.

Ministers have constantly insisted they are focusing on helping with the cost of living and boosting growth, with many policies briefed already. However, with nothing certain until the Chancellor stands up, here is what to expect in Wednesday’s Autumn Statement.

Benefits

Recently publishing a revamp of the benefits system, the Prime Minister plans to force more claimants to look for jobs. Under the plans, hundreds of thousands of people with mobility and mental health problems will be told to look for work they can do from home, or facing their benefits reduced by £4,680 a year.

Applying to all new claimants from 2025, it forms parts of something Treasury sources are describing as a “carrot and stick” approach.

Mr Hunt has also hinted at a squeeze on the amount of benefits paid out, with the increase normally based on the September figure for inflation – so a 6.7 per cent hike. However, the Chancellor has not ruled out using October's figure instead, which would mean a 4.6 per cent rise, or a cut in real terms.

Tax cuts

Mr Hunt is under huge pressure to deliver tax cuts, with Tory MPs demanding them after the OBR said “fiscal headroom” had grown to between £13 billion and £15bn.

One cut we know is being considered are changes to inheritance tax that would reduce the rate from 40 per cent to 20 per cent on estates above £325,000. Other suggestions include a less radical cut, but still slashing it slightly. While this would be a dramatic cut, it is worth noting it would only impact Britain’s richest families, with around 4 per cent of estates paying inheritance tax in 2021.

Housing

The Government could also cancel a planned increase on stamp duty, with the UK property market unaffordable for new buyers due to high interest rates and a general refusal to sell from those who already own. Plans to offer more support to new buyers had been rumoured, but are now expected to be delayed.

Fuel

The Chancellor is also expected to cancel the planned 5p increase in fuel duty from April, with fuel duty frozen at almost every budget.

Individual Savings Account

Mr Hunt is understood to be looking at reforming the Individual Savings Account (ISA) system to encourage providers to help consumers make more in tax-free interest. These reforms could include new stocks and shares for UK-listed companies, and an additional £5,000 for those show invest using the new tax-free product.

The house price limit on a Lifetime Isa is also being assessed, and could be raised to keep up with house prices, while there is also rumours of a new Isa for first-time buyers.

Autumn Statement: When is it, what's been announced, and what is expected from the Chancellor Jeremy Hunt

Comments