Autumn Statement 2022: All The Key Points

Here is everything you need to know about the chancellor's tax rises and spending cuts.
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Chancellor of the Exchequer Jeremy Hunt delivering his autumn statement to MPs in the House of Commons, London. Picture date: Thursday November 17, 2022. (Photo by House of Commons/PA Images via Getty Images)
House of Commons - PA Images via Getty Images

Jeremy Hunt has announced £55bn in tax rises and spending cuts in an autumn statement designed to repair the damage of September’s mini-Budget.

It came as the Office for Budget Responsibility (OBR) said the UK economy was already in recession.

Here are the key announcements from the chancellor.

Energy bills

The cap on average household energy bills will increase from £2,500 to £3,000 from April.

Hunt also announced an additional cost-of-living payments for the “most vulnerable”, with £900 for those on benefits, £300 for pensioners and £150 for those on a disability benefit.

Income tax thresholds

Income tax thresholds will be frozen until April 2028. Labour said Hunt had “picked the pockets” of voters as it will cost an average earner more than £600.

45p tax rate

More people will now pay 45p top rate of tax. It will now apply to earnings over £125,140, down from £150,000. Hunt said it means those making £150,000 or more will pay just over £1200 more a year. 

Benefits

Working age and disability benefits will increase in line with inflation, with a rise of 10.1%, costing £11bn.

Pensions

State pensions will increase in line with inflation in April, which Hunt said was the “biggest ever cash increase in the state pension”.

National living wage

The national living wage will be increased by 9.7%, making the hourly rate £10.42 from April 2023.

Stamp duty

Stamp duty cuts announced in the mini-Budget will remain in place but only until March 31 2025. 

Windfall tax

The windfall tax on oil and gas giants has been increased from 25% to 35%. Hunt has also imposed a 45% levy on electricity generators to raise an estimated £14bn next year.

Schools

The chancellor said he will invest an extra £2.3 billion per year in schools over the next two years.

Health

Hunt said he will increase the NHS budget by an extra £3.3bn in each of the next two years.

Defence

The commitment to spend 3% of GDP on defence will be reviewed, until then it will stay at at least 2%.

International aid

Spending on international development aid will not return to 0.7% of GDP until “the fiscal situation allows”. It will stay at 0.5%.