Here are the main points outlined by Jeremy Hunt as part of his £55bn package of tax rises and spending cuts to put the UK “on a balanced path to stability”.
• Energy bill aid for households extended beyond April for a further year through energy price guarantee, but average annual bill will be £3,000 from current £2,500. Amounts to around £500 support for households.
• Additional cost of living payments next year of £900 to households on means-tested benefits; £300 to pensioner households and £150 for individuals on disability benefit.
• An additional £1bn of funding to enable a further twelve month extension to the household support fund.
• Government will proceed with the Sizewell C new nuclear plant with £700m investment by taxpayer to bolster energy security and diversify further from harmful carbon.
• New funding, from 2025, of a further £6bn in energy efficiency.
• Working age and disability benefits uprated by inflation with an increase of 10.1% at cost of £11bn.
• Over 600,000 more people on Universal Credit to be forced to meet with a work coach in a bid to get more into the workforce and better-paid jobs.
• Increase in social rents to be capped at a maximum of 7% in 2023/24.
• National Living Wage to rise by 9.7% from April to an hourly rate of £10.42, an annual pay rise worth over £1600 to a full time worker.
• Pension credit to rise by 10.1%, worth up to £1470 for a couple and £960 for a single pensioner. This delivers on promise under the so-called triple-lock.
• Reduces the threshold at which the 45p rate becomes payable from £150,000 to £125,140.
• Maintains freeze on the income tax personal allowance, higher rate threshold, main national insurance thresholds and the inheritance tax thresholds for a further two years – to April 2028.
• Dividend allowance will be cut from £2,000 to £1,000 next year and then to £500 from April 2024.
• The annual exempt amount for capital gains tax will be cut from £12,300 to £6,000 next year and then to £3,000 from April 2024.
• From April 2025, electric vehicles will no longer be exempt from vehicle excise duty.
• Stamp duty cuts announced in the mini-budget will remain in place, but only until 31 March 2025.
• While the employer’s National Insurance contributions threshold is frozen until April 2028, the employment allowance will be retained at its new, higher level of £5,000 until March 2026.
• R&D tax relief for SMEs deduction rate cut to 86% and the credit rate to 10% but increase the rate of the separate R&D expenditure credit from 13% to 20%.
• Windfall tax on major oil and gas producers raised to 35% from 25%. A 45% energy profits levy rate to be imposed on electricity generators to raise a combined £14bn next year.
• Nearly two thirds of properties will not pay a penny more in business rates next year, thousands of pubs, restaurants, and small high street shops will benefit to the tune of £14bn over five years.
• By the end of next year, changes to EU regulations in five growth industries: digital technology, life sciences, green industries, financial services and advanced manufacturing will have been decided.
• Plan to help make Britain the “new Silicon Valley” will also see public funding for R&D (research and development) increased to £20bn by 2024/5.
• “We will deliver the core Northern Powerhouse Rail”. Promises existing funding for HS2 to Manchester, East West Rail, new hospitals programme and gigabit broadband rollout.
• Adult social care secures additional grant funding of £1bn next year and £1.7bn the year after, this means an increase in funding available for the social care sector of up to £2.8bn and £4.7bn respectively.
• Increases the NHS budget, in each of the next two years, by an extra £3.3bn.
• To invest an extra £2.3bn per year in our schools.
• An extra £1.5bn for the Scottish government, £1.2bn for the Welsh government and £650m for the Northern Ireland Executive.
• Office for Budget Responsibility (OBR) forecasts borrowing in this financial year of £177bn, £140bn in 2023/4.
• OBR sees “overall” UK growth in 2022 of 4.2% but economy now in recession. Contraction of 1.4% expected in 2023.
• OBR sees a rise in unemployment from 3.6% today to 4.9% in 2024.
• OBR sees an average inflation rate this year of 9.1% and 7.4% next year.
• Two new fiscal rules: Underlying debt must fall as a percentage of gross domestic product by the fifth year of a rolling five-year period, and that public sector borrowing must be below 3% of GDP over the same period.