There was a big emphasis on growing the economy. However, with the economy in recession, the Office for Budget Responsibility (OBR) predicted an overall growth of 4.2% in 2022.
There was a big emphasis on growing the economy
As expected, the cost-of-living crisis and the energy crisis played a big role in this statement. Hunt promised that the energy price cap will increase to £3,000 from £2,500 for the average household from April. As well as this, to support those most vulnerable, the government will introduce extra cost of living payments. This will include £900 for those receiving benefits and £300 for pensioners.
To support those most vulnerable, the government will introduce extra cost of living payments.
With regards to inflation, he placed global factors as the main reason for inflation but claimed that the Autumn Statement would cause it to fall next year.
Furthermore, with the government's rising debt, Hunt announced that the 45p tax threshold would decrease to £125,140. Hunt will also be continuing Rishi Sunak's freezing of personal tax allowances for another two years, which will ultimately lead to more people paying more tax as their wages increase. Also, the windfall tax on oil and gas businesses to 35% from 25%.
Health and education also placed an important role in the budget, with the Chancellor increasing the NHS budget by £3.3 billion per year for the next two years. Social care would also receive £1 billion in grant funding next year. Moreover, Hunt emphasised the importance of future generations, guaranteeing that the Treasury would increase school's budget by an extra £2.3 billion a year.
Overall, a clear emphasis was placed on growing and rebuilding the economy, whilst tackling the cost-of-living crisis. The new Chancellor's budget, which includes tax rises, is in stark contrast to the former Chancellor, Kwasi Kwarteng's statement. In fact, Sky News claimed that it had all the "hallmarks of a Labour budget", rather than the perceived small state, low tax budgets that are normally associated with the Conservative Party.