Jeremy Hunt will unveil his Autumn Statement tomorrow (November 17), a financial plan that will doubtless have huge impact on millions of Brits.
The “eye-wateringly difficult” measures are being introduced to fill an estimated £60 billion hole in the public purse.
It was was caused by a combination of the pandemic, the war in Ukraine, soaring energy costs and Liz Truss’ mini budget.
Prime Minister Rishi Sunak has said the gap must be filled in order to tackle soaring inflation and the cost-of-living crisis.
But what will it mean for the British public? Read on and we’ll tell you what you can expect…
When will Jeremy Hunt deliver the Autumn Statement?
The statement will be given tomorrow by the Chancellor.
An exact time hasn’t yet been announced, but it is expected before midday.
PM Rishi Sunak said today that the measures unveiled will be “based on compassion”.
He said: “I want to tell people that the decisions that we’ll be making tomorrow will be based on fairness.
“They’ll be based on compassion.
“I am confident that when people see the set of decisions they will see that we have strived incredibly hard to deliver fairness, to deliver compassion and put the UK on a positive economic trajectory.”
What can Brits expect from the Autumn Statement?
Good news and bad news has been teased by aides working at the Treasury.
Hunt is said to be considering extending a freeze on income tax thresholds until 2028.
This is called stealth tax and will drag millions in to the higher rate of tax.
It was originally supposed to end in 2026.
By extending it, Brits who earn over £50,000 a year could end up paying £3,659 more in tax overall.
A stealth tax is form a tax collected in a way that isn’t obvious.
While the government doesn’t change the headline rate, you end up paying more money.
That’s because while salaries rise, the tax threshold stays the same – and so you get dragged into the higher tax bracket.
Thresholds would usually be tweaked to reflect the rate of inflation and a rise in earnings.
Council tax rates to rise?
The Chancellor has suggested that a council tax rise could be on the cards in the statement.
However, he has insisted that richer home owners will bear the brunt of that increase.
Higher earnings will also be targeted, it’s claimed.
The £150,000 tax threshold – where the additional rate of income tax kicks in – could be lowered.
As well as that, the rate of 45p in the pound rate could also be raised.
Pensioners to benefit from Autumn Statement?
It’s believed that the triple lock pension will remain in place.
This sees pension payments rise in line with whichever of the following is highest – the average percentage growth of earnings in Great Britain, the rising cost of living or 2.5%.
It’ll be a huge win for pensioners should the Chancellor decide to stand by the policy.
Autumn Statement to help with rising energy bills?
It’s been reported that eight million lower income households could be set for a cost-of-living payment to help with rising energy bills.
The most vulnerable could be in line for a payment of £1,100.
It’ll be a revision to the plan from last summer and could see people on benefits getting £650, poorer pensioners being handed £300 and there are reports there could be another £150 disability payment.
As well as that, Hunt is said to be planning a 10% hike to the national living wage.
This could see the rate rise from £9.50 to £10.40 per hour.
And it would mean a pay rise for more than 2.5 million Brits.
Jeremy Hunt to target energy firms in Autumn Statement?
There have also been reports that Hunt is planning on raising the rate of windfall tax by five points to 30%.
This would mean the eye-watering profits being made by energy companies would be targeted.
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