Autumn Statement unveiled amid soaring cost-of-living 

The statement comes as the UK economy is shaken by turmoil leftover from the pandemic, as well as the cost-of-living crisis and inflation. 

It was originally intended to function as an emergency fiscal package in the aftermath of the UK government crisis that took place in October, before being upgraded to a full Autumn Statement. 

Firstly, the chancellor announced that the threshold for when the highest earners start paying the top rate of tax will be brought down from £150,000 to £125,140. 

He also said the OBR expects inflation to be 9.1% this year, and 7.4% next year, before confirming that pensions - like benefits - will rise in line with September’s inflation rate of 10.1%. 

Additionally, new energy rules were oultined, with it announced that a household using a typical amount of gas and electricity will pay £3,000 annually, up from £2,500, as the Energy Price Guarantee rises. The scheme will run for 12 months from April. 

Alongside this, Hunt promised an extra £1.5bn for the Scottish government, £1.2bn for the Welsh government, and £650m for the Northern Ireland Executive, as well as further devolution within England.  

He also confirmed the energy industry will be hit with an expanded windfall tax of 35% up from 25% from 1 January until March 2028, and introduced a temporary 45% levy on electricity generators, which has caused shares energy firms such as Drax to fall sharply. Hunt said together these taxes will raise £14bn next year. 

In her response to the statement, shadow chancellor Rachel Reeves said: "In the last hour, the Conservatives have picked the pockets of purses and wallets of the entire country, as the chancellor has deployed a raft of stealth taxes taking billions of pounds from working people." 

Craig Wilson, managing director of private sector at Sopra Steria, commented: “A freeze on the tax threshold, increasing council tax payments and cuts to public spending – Jeremy Hunt’s autumn budget signals tough times ahead for the UK.  

“While it’s positive that benefits and pensions are set to increase in line with inflation, rising energy bills will be difficult to avoid, especially as temperatures are expected to become less mild than of late.   

“Energy companies, financial service providers and the government, all have a part to play in educating consumers on the types of assistance on offer and helping to destigmatise this for the growing number that would benefit from increased support. 

“This will be crucial to supporting society’s most vulnerable over the coming months.”