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Families face “real challenges”, Jeremy Hunt has warned, as government forecasters predict the biggest drop in living standards since records began. <\/b><\/p>\n<\/div>\n<\/div>\n\n
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The Office for Budget Responsibility says household income will fall by 7% over the next 18 months.<\/p>\n<\/div>\n<\/div>\n
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The chancellor said tax rises and a spending squeeze in his Autumn Statement would help tame inflation which he said had caused the drop.<\/p>\n<\/div>\n<\/div>\n
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But Labour said he had picked the nation’s pockets with “stealth taxes”. <\/p>\n<\/div>\n<\/div>\n
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Shadow chancellor Rachel Reeves described the emergency budget measures as “an invoice for the economic carnage” created by Prime Minister Liz Truss’s mini-budget.<\/p>\n<\/div>\n<\/div>\n
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\n- UK in recession and set to shrink further – Hunt<\/li>\n
- Analysis: Hunt seeks stability but voters will feel poorer<\/li>\n
- Autumn Statement 2022: Key points at-a-glance<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n
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In a sombre statement lasting just under an hour, Mr Hunt undid much of the tax-cutting mini-budget unveiled by his predecessor as chancellor, Kwasi Kwarteng, only 55 days ago. <\/p>\n<\/div>\n<\/div>\n
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It was deliberately stripped of surprises and political theatre, with many of the announcements having been trailed in the media beforehand.<\/p>\n<\/div>\n<\/div>\n
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Under key measures announced:<\/p>\n<\/div>\n<\/div>\n
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\n- Tax thresholds will be frozen until April 2028, meaning more people will pay tax <\/li>\n
- Spending on public services in England will rise more slowly than planned – with some departments facing cuts after the next election<\/li>\n
- The state pensions triple lock will be kept, meaning pensioners will get a record \u00a3780 increase<\/li>\n
- The household energy price cap has been extended for one year beyond April but made less generous, with typical bills capped at \u00a33,000 a year instead of \u00a32,500<\/li>\n
- There will be additional cost-of-living payments for the “most vulnerable”, with \u00a3900 for those on benefits, and \u00a3300 for pensioners<\/li>\n
- The top 45% additional rate of income tax will be paid on earnings over \u00a3125,140, instead of \u00a3150,000<\/li>\n
- UK minimum wage for people over 23 to increase from \u00a39.50 to \u00a310.42 an hour<\/li>\n
- The windfall tax on oil and gas firms will increase from 25% to 35%, raising \u00a355bn from this year until 2028<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n
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Speaking afterwards, Mr Hunt told the BBC’s political editor Chris Mason his plan would bring down inflation, while protecting public services. <\/p>\n<\/div>\n<\/div>\n
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“These are real challenges for families up and down the country,” he said adding: “I’m not pretending these aren’t going to be difficult times, but there’s a plan, there’s hope – and if we follow this plan, if we stick with it, we can get through to the other side.<\/p>\n<\/div>\n<\/div>\n
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“We need to be sensible about the way we do this. We don’t want to make the recession worse.”<\/p>\n<\/div>\n<\/div>\n
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The chancellor announced extra money for schools, the NHS and social care in England for the next two years. <\/p>\n<\/div>\n<\/div>\n
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Mr Hunt denied that he had been forced to raise taxes and reduce spending because of the turmoil caused by Ms Truss’s mini-Budget.<\/p>\n<\/div>\n<\/div>\n
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He said there had been mistakes, but insisted the government had “corrected those within weeks”.<\/p>\n<\/div>\n<\/div>\n
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He argued that other countries, such as Germany, France and America were all facing similar problems as a result of the conflict in Ukraine and rising energy prices. <\/p>\n<\/div>\n<\/div>\n
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And he denied he’d postponed difficult decisions, with the squeeze on government departments to come. <\/p>\n<\/div>\n<\/div>\n