Image source, Reuters
Chancellor Jeremy Hunt is unveiling the contents of his Autumn Statement in the House of Commons.
He is revealing tax rises and spending cuts worth billions of pounds aimed at mending the nation’s finances.
Here is a summary of the main measures announced so far.
Taxation and wages
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Top 45% additional rate of income tax will be paid on earnings over £125,140, instead of £150,000Income tax personal allowance and higher rate thresholds frozen for further two years, until April 2028Main National Insurance and inheritance tax thresholds also frozen for further two years, until April 2028Tax-free allowances for dividend and capital gains tax also due to be cut next year and in 2024
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Windfall tax on profits of oil and gas firms increased from 25% to 35% and extended until March 2028New “temporary” 45% tax on companies that generate electricity, to apply from January
The economy and public finances
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The Office for Budget Responsibility judges UK to be in recession, meaning the economy has slowed for two quarters in a rowIt predicts growth for this year overall of 4.2%, but size of the economy will shrink by 1.4% in 2023Growth of 1.3%, 2.6%, and 2.7% in 2024, 2025 and 2026UK’s inflation rate predicted to be 9.1% this year and 7.4% next yearUnemployment expected to rise from 3.6% to 4.9% in 2024Government will give itself five years to hit debt and spending targets, instead of three years currently