Here are some of the main announcements from Chancellor Jeremy Hunt’s autumn statement to MPs:
This will be updated as more information comes in…
The Office for Budget Responsibility (OBR) predicts an average inflation rate of 2.8% by the end of next year and 2% by 2025.
The OBR sees “overall” UK growth in 2023 of 0.6%. Growth of 0.7% is expected in 2024, doubling to 1.4% in 2025.
Benefits will increase by 6.7%, the September rate of inflation, as is customary, with the increase coming into effect in April.
The chancellor announced he will increase the local housing allowance rate to the 30th percentile of local market rents, which he says will give 1.6 million households an average of £800 support next year.
For the self-employed, the chancellor said he is making reforms to the way national insurance is paid to save around 2 million people an average of £350 per year.
He said he is abolishing Class 2 national insurance – which he says saves £192 a year – for the self-employed.
Meanwhile, Class 4 national insurance will be cut from 9% to 8% on earnings between £12,570 and £50,270.
State pension payments are to rise by 8.5% to £221.20 a week, worth almost an extra £900 a year. The triple lock will be “honoured in full”.
A further £500m will be invested over the next two years to fund further “innovation centres to help make us an AI powerhouse”, Mr Hunt said.
Moreover, a “new, simplified” tax relief for research and development will combine the existing R&D Expenditure Credit and SME schemes.
Through that merged scheme, Mr Hunt said he will also cut the rate at which loss-making companies are taxed from 25% to 19%.
The full expensing scheme – currently due to expire in 2026 – will be made permanent.
This allows firms to write off the entire cost of spending on new machinery and equipment, while also saving 25p from every pound spent on other types of investment.
All alcohol duty will be frozen until August. That means no increase in duty on beer, cider, wine or spirits.
Mr Hunt pledged to provide £7m to tackle antisemitism in schools and universities. To be repeated is a £3m uplift to Jewish organisation Community Security Trust.
The government will meet their NATO commitment of spending 2% of gross domestic product (GDP), the measure of everything produced in the economy, on defence.
The chancellor also said he will also extend national insurance relief for employers of eligible veterans for another year. This will provide £10m to support the Veterans’ Places, Pathways and People programme, he added.
