Autumn Statement 2023 live: Chancellor Jeremy Hunt cuts National Insurance and announces overhaul of benefits
Jeremy Hunt has delivered his Autumn Statement, where he has cut tax for business, abolished national insurance for the self-employed, and reformed benefits so claimants face sanctions if they choose not to work.
The Chancellor also unveiled downgraded forecasts for growth.
Jeremy Hunt will deliver his Autumn Statement today, and does so under huge pressure from Tory MPs to announce tax cuts. The Chancellor is expected to cut National Insurance for 28 million people, as well as reform benefits so claimants face sanctions if they choose not to work.
Cold, hard, facts
There will be lots of talk from Tory MPs about tax cuts, backing business and cheaper alcohol, but in the OBR forecasts, there is very little to celebrate.
They say disposable income will be 3.5 per cent lower in 2024/25 than before the pandemic. People's lives getting harder.
Con you believe it
The SNP has said the Tory government's autumn budget is "far too little, too late for the squeezed majority of households" with household bills outpacing the help on offer.
SNP Economy spokesperson Drew Hendry MP said: "With UK energy bills, mortgages, rents and food prices soaring, the very limited measures in the Chancellor's statement won't touch the sides for most households who have seen their monthly costs go through the roof - and will still be hundreds of pounds worse off. "This is yet another con trick from a Tory government that trashed the UK economy, failed to match the SNP government's council tax freeze and Scottish Child Payment - and has refused to devolve powers to the Scottish Parliament so the SNP can act where they won't".
Fib Dems
Liberal Democrat Treasury spokesperson Sarah Olney MP labels the Autumn Statement a "deception".
She said: "Conservative chaos has sent mortgages and tax bills soaring, today’s announcements won’t even touch the sides.
“Worse still was the deafening silence on health. These dismal forecasts show the economy is on life support and reducing NHS waiting lists is the shot in the arm needed.
“It is a no-brainer that we need people off waiting lists and back to work, yet this Conservative government simply doesn’t care.
“Today has been more stale nonsense from a Conservative government out of touch and out of ideas.”
Fiscal wriggle
All of the Chancellor’s headroom against his debt targets can be attributed to real terms cuts in Government spending, the Office for Budget Responsibility has said.
The OBR said higher inflation had boosted tax receipts, but spending limits for Government departments had not changed meaning they were lower in real terms.
It added that maintaining the level of spending expected in March this year would require an additional £20.5 billion by 2028-29 – against headroom of £13 billion.
The OBR forecast said: “In this sense, all of the headroom against the fiscal mandate at this event can be attributed to the erosion in the real value of departmental spending.”
Jack it in
The Scotland Secretary Alister Jack has claimed the Autumn Statement is "great news for Scotland".
He said: "The National Insurance cut and increase in the National Living Wage will mean a pay boost for millions of workers right across Scotland. We have honoured the pensions triple lock, meaning pensioners will get a £900 a year increase.
“Vital new support for Scottish businesses will ensure we get growth back into our economy.
"The Chancellor confirmed more than £200 million of new, direct UK Government investment in exciting projects across Scotland, which will create jobs, boost growth and transform communities.
“Plus, there will be an additional £545 million in Barnett Consequentials for the Scottish Government, on top of their record block grant.
"There is a lot to cheer about, not least the duty freeze on spirits to support Scotland’s biggest export industry.”
Briefing backlash
Following the reports that inheritance tax would be cut, shadow chancellor Rachel Reeves asked Jeremy Hunt if not doing was a “decision delayed or a decision abandoned”.
She added Commons: “This autumn statement for growth is now the 11th Conservative economic growth plan from the fifth prime minister, the seventh chancellor and the ninth business secretary.
“And what do those numbers add up to? According to the most recent GDP data, a big fat zero. That’s zero growth in the most recent data in the third quarter of this year.”
The lesson here is, don't tell friendly newspapers you're going to something if you aren't going to do it.
Drag act
As ever, the devil is in the detail. In March 2021, Rishi Sunak announced that tax thresholds would be frozen for four years, something now extended until 2027-28.
Office for Budget Responsibility figures show the tax threshold freezes mean nearly four million additional taxpayers will now be expected to pay income tax, while three million more will be pushed into the higher rate. An additional 400,000 will pay the top 45 per cent rate.
The proceeds of fiscal drag - also known as a stealth tax, will be £44.6billion by the end of the OBR’s forecast in 2028-29, up £13.6billion from the OBR’s last forecast in March this year.
Sneaky.
Picture perfect
One of the more silly elements of days like this is the Chancellor gets little photoshoots outside his office, like someone who's just bought a flat (with parental help).
Anyway, here's Jeremy Hunt holding a folder that could have just been an email.
That's all hoax!
Fiscal drag fast becoming the story here, with the Lib Dems accusing the Tories of a "hoax".
Liberal Democrat Leader Ed Davey MP said: “This Autumn Statement was a Hunt hoax. Buried in the small print is a massive stealth tax raid that will drag millions into paying a higher rate in the coming years.
“The British people will rightly be furious at this deception, as they are forced to pay the price for Conservative chaos through years of unfair tax hikes.
“It is high time that this Conservative government came clean about just how much money they are taking out of hard-working families' pockets".
Had enough of experts
New update from Labour, who say this will be the biggest tax-raising parliament on record, and the biggest hit to living standards on record.
They argue the tax burden is set to increase by £4,300 per household, according to the OBR, and incomes will be 3.5 per cent lower next year.
Not a happy home life.
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