The Autumn Statement 2022 has been released as Jeremy Hunt delivered his first budget as Chancellor.
“To be British is to be compassionate,” he explained ahead of the statement.
Hunt then went on to online the government‘s three key priorities for the budget which he hopes will help with the cost-of-living crisis.
He explained they are: “Stability, growth and public services.”
So what are the key points in the Autumn Statement 2022? Read on and we’ll tell you.
Autumn Statement 2022: Stability
Hunt explained: “High inflation is the energy of stability,” continuing: “It hurts the poorest the most.”
He added: “British families make sacrifices every day to live within their means and so too must the government.”
Hunt then outlined his plans to improve stability and cut borrowing so as not to “leave our debts to the next generation”.
“But it means taking difficult decisions,” he said. “Anyone who says there are easy answers is not being straight with the British people.”
Tax
“I have tried to be fair,” he explained, asking those with more to give more.
The threshold for the 45p rate of tax is falling to £125,140 from £150,000.
Tax-free allowances, income tax personal allowance, inheritance tax threshold and national insurance thresholds will remain the same for two years.
Dividend allowances are also being cut. The annual exempt amount of capital gains tax are also being cut.
Come 2025, electric vehicles will no longer be exempt from vehicle excise duty.
Stamp duty cuts outlined in the mini budget will remain in place until March 2025.
A number of tax avoidance schemes of multi-national companies have also been outlined.
Hunt also revealed he’s softening the blow on businesses with a tax cut over the next five years.
He explained smaller high street shops are among those who stand to benefit from this.
Autumn Statement 2022: Protecting public services
People on Universal Credit will be asked to meet with a work coach to help them increase their hours or earnings.
He’s also planing a crackdown on benefit fraud and will announce the government’s review of the state pension age in early 2023.
Hunt then moved onto schooling.
“Being pro-eduction is being pro-growth,” he said.
Hunt announced they are increasing school budgets, investing an extra £2.3 billion in schools.
He then turned to the NHS, announcing plans to combat staff shortages over the next five, 10 and 15 years time.
The Chancellor also addressed the social care sector amid “massive pressure on their services”.
He’s delaying the implementation of the Dilnot reforms for two years, allocating the funding to local authorities to allow more care packages.
Hunt is also giving adult social care additional funding – £4.7bn – to help get people home from hospital and free up beds.
It’s claimed this will help the NHS deliver an addition 200,000 care packages over the next two years.
The NHS is being asked to tackle waste and inefficiency. Its budget is being increased in each of the next two years by £3.3bn.
Autumn Statement 2022: Economic growth
Hunt then turned to his final point – ensuring economic growth.
“You cannot borrow your way to growth,” he said, aiming a jibe at the Labour Party.
Addressing the energy crisis, he said in the long-term he’s striving for energy independence.
As a result, the government is planning a new nuclear power plant.
He said this will create 10,000 highly-skilled jobs and create power for six million homes for 50 years.
Energy efficiency is just as important, with Hunt explaining they want to reduce energy consumption in the building industry by 15%.
They are also doubling their investment in energy efficiency.
Infrastructure
A number of new roads and rail initiative were also confirmed, with HS2 to Manchester among the things getting the sign off for funding.
He also wants to level up economic opportunity across the country, and is proceeding with round two of the levelling up fund, at least matching the value given in round one.
Hunt also announced devolution deals to enable decision to be made at a local level more easily.
In a nod to Brexit, import tariffs on certain goods are also being removed in a bid to help businesses.
Hunt also confirmed they won’t cut the research and development budget. In fact, the plan is to increase the budget to make Britain a “science super power”.
Autumn Statement 2022: Protecting the most vulnerable
Hunt is planning to help the most vulnerable citizens in the cost-of-living crisis.
This winter, the government will help with energy bills. From April, the energy price guarantee will continue for another 12 months with a cap of £3,000 for the year.
With prices forecast to remain elevated, this will mean a saving of £500 for most households.
For the most vulnerable an additional cost-of-living payment of £900 will be given to households on means tested benefits.
Pensioner households will get £300. And £150 will go to those on disability benefit.
For those who use alternative fuels, there will be a doubling of support to £200 to be delivered this winter.
Hunt said he wanted to “go further” to support those “most exposed” to inflation rises.
He announced the increase of social rents will be capped at 7%. This means a saving of £200 for the average tenant next year.
The living wage rate was also increased to £10.42 per hour, a pay rise worth £1,600 to a full-time worker.
Pension credit is also being increased by 10.1%.
The pensions triple lock will also be protected, Jeremy Hunt said.
State pension will also increase in April in line with inflation.
“The British people are tough, inventive and resourceful,” he explained.
“There may be a recession made in Russia but there is a recovery made in Britain.”
Read more: Vote for your National Treasure in our Entertainment Daily Awards 2022!
Head to our Facebook page @EntertainmentDailyFix and share your thoughts.