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.
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.
Working age and disability benefits will increase in line with inflation, with a rise of 10.1%, costing £11bn.
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 cuts announced in the mini-Budget will remain in place but only until March 31 2025.
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.
The chancellor said he will invest an extra £2.3 billion per year in schools over the next two years.
Hunt said he will increase the NHS budget by an extra £3.3bn in each of the next two years.
The commitment to spend 3% of GDP on defence will be reviewed, until then it will stay at at least 2%.
Spending on international development aid will not return to 0.7% of GDP until “the fiscal situation allows”. It will stay at 0.5%.