Fall statement: Jeremy Hunt unveils tax hikes for millions

Mr Hunt insisted his autumn statement was not a return to austerity, but said ‘tough decisions’ were needed to tackle inflation, now at its highest level since 41 years.

Chancellor Jeremy Hunt told the Commons: “In the face of unprecedented global headwinds, families, pensioners, businesses, teachers, nurses and many more are worried about the future.

“So today we are proposing a plan to tackle the cost of living crisis and rebuild our economy.

“Our priorities are stability, growth and public services.

“We are also protecting the vulnerable because to be British is to be compassionate and that is a compassionate Conservative government.”

The Chancellor warned that “high inflation is the enemy of stability” as it sends food and fuel bills skyrocketing, businesses failing and unemployment rising.

“It erodes savings, causes industrial unrest and reduces funding for public services. It hurts the poorest the most and eats away at the trust on which a strong society is built,” he said.

“Families across Britain are making sacrifices every day to live within their means, and governments must do the same because the UK will always pay its share.”

Leigh's Diary:

What did Jeremy Hunt announce in his fall statement today?

Mr Hunt outlined a package of £30billion in spending cuts and £24billion in tax hikes over the next five years.

His package stands in stark contrast to his predecessor Kwasi Kwarteng’s ill-fated plan for £45billion in tax cuts less than two months ago which spooked markets, drove up the cost of borrowing and contributed to the fall Liz Truss’ shorts. -experienced administration.

Among the policies announced by the Chancellor was a 25% to 35% increase in the energy windfall tax on profits made by oil and gas companies.

Meanwhile, some of the highest earners in the country will pay more tax as the top tax threshold is lowered from £150,000 to £125,140 meaning those earning over £150,000 will pay 1 £200 extra per year.

Mr Hunt also announced that the personal income tax abatement threshold would be frozen until 2028, meaning millions of people will end up paying more tax.

Freezing the threshold means that tax brackets will remain the same, even if wages increase. The threshold was initially frozen until 2026.

Taxes as a percentage of GDP will only rise by 1% over the next five years, Mr Hunt said.

He said he would also reform unearned income allowances, noting: “The dividend allowance will be reduced from £2,000 to £1,000 next year and then to £500 from April 2024.

“The annual amount exempt from capital gains tax will increase from £12,300 to £6,000 next year and then to £3,000 from April 2024. These changes still leave us with more generous allowances in together than countries such as Germany, Ireland, France and Canada. .”

Jeremy Hunt said he would continue to keep the defense budget at “at least 2% of GDP”.

On education, the Chancellor revealed that schools budgets would increase by £2.3billion a year.

The NHS England budget will also be increased by £3.3bn over the next two years, while there would be an additional £4.7bn for social care.

Barnett’s fallout means an extra £1.5bn for the Scottish government, £1.2bn for the Welsh government and £650m for the Northern Ireland executive.

Mr Hunt also announced that the government would proceed with a new nuclear power station at Sizewell C in the south-east of England, creating 10,000 skilled jobs and providing electricity to the equivalent of six million out of 50 homes year.

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