The Chancellor, Jeremy Hunt makes his 2022 Autumn Statement, this is the third fiscal event or budget, in the UK's parliament in as many months. Our live highlights of the speech as below.

Follow this link for: our Autumn Statement: At a glance summary

With inflation running at over 10% tax revenue is increased freezing most tax thresholds with the exception of higher rate taxpayers who see the higher rate threshold drop down to £125,140. There are reductions in allowances for dividend tax and CGT too.

The Chancellor listed out his three priorities: stability, growth and public services.

  • OBR confirms that 'global factors' are the primary cause of inflation, COVID-19 measures have to be paid for; the war in Ukraine has increased energy costs by eight times.
  • IMF expects a third of world economies to be in recession next year.
  • Fiscal and Bank of England's monetary policy must work together.
  • Must continue a relentless fight against inflation.
  • The UK is in recession.
  • Unemployment is forecast to increase.
  • Public sector borrowing reduction must meet new targets
  • We do not leave our debts for the next generation.
  • Tackling inflation and supporting the economy on a path to growth.

On tax, trying to be fair: decisions will lead to substantial tax increases.

Personal taxes

  • Reduce the £150,000 higher rate Income Tax threshold to £125,140.
  • Freeze the Personal allowance and other thresholds, including the main National Insurance and Inheritance Tax thresholds for two years until April 2028.
  • Dividend allowance reduced to £1,000, then £500 from April 2024.
  • CGT annual exemption was reduced from £12,300 to £6,000, then to £3,000, the following year.

SDLT: rate increases made in September will continue in place. 

Business taxes

  • Employment allowance is retained.
  • VAT threshold unchanged.
  • OECD's global Corporation Tax reforms will be followed up.
  • Reduction in R&D relief rate, changes to the credit relief.
  • Business rates revaluation to continue.

Motor vehicles

  • Electric vehicles will cease to be exempt from VED.

Windfall taxes

  • The existing 'energy profits levy' on oil and gas companies to increase from 25% to 35%.
  • From Jan 1 45% levy on electricity generators.

Department of Work & Pensions

  • Review into the causes of the increase in inactive non-working adults.
  • People on universal credit to meet with 'Work coaches' to see how to get them back into work 

 Defence & overseas

  • We will continue to keep defence budget at 2% of GDP.
  • Overseas aid, will continue to keep the commitment of 0.5%

Climate change

  • We remain fully committed to the Glasgow pack and the 68% reduction in emissions.

Education

  • Investment of £2.2bn into schools.
  • Review of opportunities for school leavers.

Social care & health

  • Some £2.8billion of extra funding next year.
  • NHS budget increased by £3.3bn for each of the next three years.

Devolution

  • £1.5bn funding for the Scottish government.
  • £1.2bn for the Welsh government.
  • £650m for the Northern Ireland executive.

Energy and infrastructure

  • The annual cost of the current energy crisis is some £150bn.
  • New energy independence and efficiency taskforce to be introduced.
  • Support for renewable energy production, including nuclear:
    •  State backing for the new Sizewell C.
  • No cuts to capital budgets for infrastructure.
  • Northern Powerhouse rail, the HS2 and the East-West Rail to continue.

Metro mayors & devolution

  • New devolution deals to bring mayors to Suffolk, Cornwall 

Making the UK into the next Silicon Valley

  • New steps in supply side regulation post Brexit.
  • Digital, life sciences to be supported.
  • New powers to challenge monopolies.
  • Removing import tariffs on essential items for manufacturing.
  • Protect the research budget.
  • Solvency 2: unlocking investment (capital reserves) in insurance and banking.

Cost of living crisis

  • Energy price guarantee to continue.
  • Extra payments to pensioners and disabled persons.
  • Doubling support to oil and LPG customers.
  • Cap increase in social rents to a max of 7%.
  • Increase in rate of National Living Wage from £9.50 to £10.42 per hour.
  • 10.1% increase in universal credit for working families and pension credit.
  • Pensions triple lock continues.


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