{"id":9534,"date":"2022-11-18T10:26:59","date_gmt":"2022-11-18T10:26:59","guid":{"rendered":"https:\/\/new.contentdeployment.co.uk\/tomd\/?p=9534"},"modified":"2022-11-18T10:27:46","modified_gmt":"2022-11-18T10:27:46","slug":"autumn-statement-2022","status":"publish","type":"post","link":"https:\/\/new.contentdeployment.co.uk\/tomd\/2022\/11\/18\/autumn-statement-2022\/","title":{"rendered":"Autumn Statement 2022"},"content":{"rendered":"
\n

\u201cWe will\nface into the storm\u201d<\/em><\/strong><\/em><\/strong><\/p>\n<\/div>\n\n

\n

O<\/strong>n 17\nNovember, Chancellor of the Exchequer Jeremy Hunt delivered <\/strong>his<\/strong> fiscal\nplan to \u201ctackle the cost-of-living crisis and rebuild our economy\u201d<\/em> <\/strong>stati<\/strong>ng that <\/strong>the government\u2019s three priorities\nare \u201cstability, growth and public services.\u201d<\/em><\/strong> <\/em><\/strong>T<\/strong>he Chancellor<\/strong> <\/strong>struck a defiant tone d<\/strong>uring <\/strong>the<\/strong> key <\/strong>fiscal event, saying he was \u201ctaking\ndifficult decisions\u201d<\/em> that would deliver a \u201cbalanced path to stability\u201d<\/em>\nbefore outlining a package of measures equating to a consolidated total of\naround \u00a355bn in spending cuts and tax rises.<\/strong><\/p>\n<\/div>\n\n

\n

E<\/strong>conomic\nforecasts<\/strong><\/p>\n<\/div>\n\n

\n

Mr\nHunt began his statement by stressing that\nthe country is facing \u201cunprecedented global headwinds\u201d<\/em> before unveiling updated economic projections from the Office for Budget Responsibility (OBR) which confirm the UK is\nnow officially in recession. The Chancellor did, however, point out that the\nindependent public finance analyst believes the downturn will be relatively\nshallow, if comparatively long. The revised GDP figures suggest the\nUK economy will grow by 4.2% this year, but then shrink by\n1.4% next year before returning to growth in 2024. <\/strong><\/p>\n<\/div>\n\n

\n

The Chancellor also announced revised\nOBR forecasts which suggest inflation will peak in the current quarter and then drop sharply over the course of next year.\nThe OBR\u2019s updated forecast though does suggest the eroding impact of inflation\nwill reduce living standards by 7% over the two financial years to 2023-24, wiping\nout the previous eight years\u2019 growth, while unemployment\nis expected to rise from 3.6% today to 4.9% by the third quarter of 2024.<\/strong><\/p>\n<\/div>\n\n

\n

Public finances<\/strong><\/strong><\/p>\n<\/div>\n\n

\n

During his speech, Mr Hunt announced he\nwas introducing two new fiscal rules and that the plan he was announcing met both of them.\nHis first rule states that underlying debt must fall as a percentage of\nGDP by the fifth year of a rolling five-year period, while the second\nstates that annual public sector borrowing, over the same time period, must be\nbelow 3% of GDP.<\/strong><\/p>\n<\/div>\n\n

\n

The Chancellor went on to reveal updated public finance forecasts, which predict government borrowing in the current fiscal year will rise to \u00a3177bn before falling back to \u00a369bn (2.4% of GDP) in 2027-28. This means the medium-term fiscal\noutlook has materially worsened since the previous OBR forecast produced in March,\nwhich had predicted borrowing of \u00a332bn by 2026-27. The OBR said this\ndeterioration in the public finances was due to a weaker economy, higher\ninterest rates and higher inflation.<\/strong><\/p>\n<\/div>\n\n

\n

Personal taxation, wages and pensions<\/strong><\/p>\n<\/div>\n\n

\n

The Chancellor went on to make a raft of key personal taxation,\nwages and pension announcements.<\/p>\n<\/div>\n\n

\n

The\ngovernment will increase the National Living Wage for individuals aged 23 and\nover by 9.7% from \u00a39.50 to \u00a310.42 an hour, effective from 1 April 2023.<\/p>\n<\/div>\n\n

\n

The commitment to the pensions Triple Lock\nremains, which will increase the State Pension in line with September\u2019s\nConsumer Prices Index (CPI) rate of 10.1%. This means that the value of the\nbasic State Pension will increase in April 2023 from \u00a3141.85 per week to\n\u00a3156.20 per week, while the full new State Pension will rise from \u00a3185.15 to\n\u00a3203.85 per week.<\/p>\n<\/div>\n\n

\n

The Income Tax additional rate threshold (ART) at which 45p\nbecomes payable will be lowered from \u00a3150,000 to \u00a3125,140 from 6 April\n2023. The ART for non-savings and non-dividend income will apply to taxpayers\nin England, Wales and Northern Ireland. The ART for savings and dividend income\nwill apply UK-wide.<\/p>\n<\/div>\n\n

\n

The Dividend Allowance will be reduced from \u00a32,000 to \u00a31,000 from\nApril 2023, and to \u00a3500 from April 2024.<\/p>\n<\/div>\n\n

\n

The annual Capital Gains Tax exemption will be reduced from\n\u00a312,300 to \u00a36,000 from April 2023 and then to \u00a33,000 from April 2024.<\/p>\n<\/div>\n\n

\n

The\nchange to Stamp Duty Land Tax threshold for England and Northern Ireland, which\nwas announced on 23 September 2022, remains in place until 31 March 2025. The\nnil rate threshold is \u00a3250,000 for all purchasers and \u00a3425,000 for first-time\nbuyers. <\/p>\n<\/div>\n\n

\n

In addition:<\/p>\n<\/div>\n\n

\n
  • The Income Tax Personal Allowance and higher\nrate threshold are to remain at current levels \u2013 \u00a312,570 and \u00a350,270\nrespectively \u2013 until April 2028 (rates and thresholds may differ for taxpayers\nin parts of the UK where Income Tax is devolved)<\/li>
  • Inheritance Tax nil-rate bands remain at\n\u00a3325,000 nil-rate band, \u00a3175,000 residence nil-rate band, with taper starting\nat \u00a32m \u2013 fixed at these levels for a further two years until April 2028<\/li>
  • National Insurance contributions (NICs) Upper\nEarnings Limit (UEL) and Upper Profits Limit (UPL) frozen for a further two\nyears until April 2028<\/li>
  • The 2022-23 tax year ISA (Individual Savings\nAccount) allowance remains at \u00a320,000 and the JISA (Junior Individual Savings\nAccount) allowance and Child Trust Fund annual subscription limits remain at\n\u00a39,000<\/li>
  • The Lifetime Allowance for pensions remains at\nits current level of \u00a31,073,100 until April 2026.<\/li><\/ul>\n<\/div>\n\n
    \n

    Business measures<\/strong><\/p>\n<\/div>\n\n

    \n
    • The National Insurance Secondary Threshold is\nfrozen at \u00a39,100 until April 2028<\/li>
    • The VAT registration threshold is fixed at\n\u00a385,000 for two years from April 2024 <\/li>
    • R&D tax credits to be reformed to ensure\npublic money is spent effectively and best supports innovation<\/li>
    • Businesses making extraordinary profits due to external\nfactors are required to contribute more, including those in the oil and gas\nsector \u2013 the Energy Profits Levy is now extended to the end of March 2028, and\nthe rate is increased by 10 percentage points to 35% from 1 January 2023<\/li>
    • A new temporary\n45% levy will be introduced for electricity generators from 1 January 2023<\/li>
    • A package of targeted support to help with\nbusiness rates costs worth \u00a313.6bn over the next five years<\/li>
    • The Annual Investment Allowance (AIA) is to be\nset at its highest ever permanent level of \u00a31m from 1 April 2023.<\/li><\/ul>\n<\/div>\n\n
      \n

      Cost-of-living support<\/strong><\/p>\n<\/div>\n\n

      \n

      The Energy Price Guarantee (EPG) per unit will be maintained through the\nwinter, in effect limiting typical energy bills to \u00a32,500 per year. From April\n2023 the EPG will rise to \u00a33,000 per year, ending March 2024. The government\nwill double to \u00a3200 the level of support for households that use alternative\nfuels, such as heating oil, liquefied petroleum gas, coal or biomass.<\/strong><\/p>\n<\/div>\n\n

      \n

      The Chancellor announced\nthat there will be targeted cost-of-living support measures for those on low\nincomes, disability benefits and pensions. In 2023-24 an additional Cost of Living Payment of\n\u00a3900 will be provided to households on means-tested benefits, \u00a3300 to pensioner\nhouseholds and \u00a3150 to individuals on disability benefits. Rent increases\nin the social housing sector will be capped at 7% in the next financial year. <\/p>\n<\/div>\n\n

      \n

      Education, health and social care<\/strong><\/p>\n<\/div>\n\n

      \n

      To promote education and boost the UK\u2019s health and social\ncare system, Mr Hunt announced: <\/p>\n<\/div>\n\n

      \n
      • An additional \u00a33.3bn per year for the NHS in the\n2023-24 and 2024-25 tax years <\/li>
      • Up to \u00a32.8bn in 2023-24 and \u00a34.7bn in 2024-25\nfor the social care sector<\/li>
      • An additional \u00a32.3bn per year for England\u2019s core\nschools budget in 2023-24 and 2024-25 <\/li>
      • An extra \u00a31.5bn, \u00a31.2bn and \u00a3650m have been\npledged for hospitals and schools in Scotland, Wales and Northern Ireland,\nrespectively. <\/li><\/ul>\n<\/div>\n\n
        \n

        Priorities for growth<\/strong><\/p>\n<\/div>\n\n

        \n

        Next, the Chancellor moved on to\noutline his three priorities for economic growth: energy, infrastructure and\ninnovation. Key announcements included: <\/p>\n<\/div>\n\n

        \n
        • A new Sizewell C nuclear power plant in Suffolk<\/li>
        • New funding of \u00a36bn from 2025 to meet the\ngovernment\u2019s objective to reduce energy consumption from buildings and industry\nby 15% by 2030<\/li>
        • Northern Powerhouse\nRail and HS2 to go ahead as planned<\/li>
        • A commitment to proceed with round two of the\nlevelling up fund, at least matching the \u00a31.7bn value of round one<\/li>
        • The removal of import tariffs on over 100 goods\nused by UK businesses<\/li>
        • An increase in public funding for R&D to\n\u00a320bn by 2024-25. <\/li><\/ul>\n<\/div>\n\n
          \n

          Other key points<\/strong><\/p>\n<\/div>\n\n

          \n
          • Vehicle Excise Duty chargeable on electric cars,\nvans and motorcycles from April 2025<\/li>
          • Local authorities in England given additional Council\nTax flexibility by modifying the referendum limit for increases <\/li>
          • Review of the Energy Bill Relief Scheme,\nfindings to be published by 31 December 2022<\/li>
          • The Secretary of State for Work and Pensions\nwill publish the government\u2019s Review of the State Pension Age in early 2023<\/li>
          • Defence\nspending to be at least 2% of national income<\/li>
          • Overseas\naid spending to be kept at 0.5% for next five years.<\/li><\/ul>\n<\/div>\n\n
            \n

            Closing comments<\/strong><\/p>\n<\/div>\n\n

            \n

            Jeremy Hunt signed off his announcement\nsaying,\u201cThere is a global energy crisis, a global inflation crisis and\na global economic crisis, but the British people are tough, inventive and\nresourceful. We have risen to bigger challenges before. We aren\u2019t immune to\nthese headwinds but with this plan for stability, growth and public services,\nwe will face into the storm\u2026 I commend this statement to the House.\u201d<\/em><\/em><\/p>\n<\/div>\n\n

            \n

            It is important to take professional advice before making\nany decision relating to your personal finances. Information within this\ndocument is based on our current understanding of taxation and can be subject\nto change in future. It does not provide individual tailored investment advice\nand is for guidance only. Some rules may vary in different parts of the UK;\nplease ask for details. We cannot assume legal liability for any errors or\nomissions it might contain. Levels and bases of, and reliefs from taxation are\nthose currently applying or proposed and are subject to change; their value\ndepends on the individual circumstances of the investor.<\/strong><\/p>\n<\/div>\n\n

            \n

            All details are believed to be correct at the time of\nwriting (17 November 2022)<\/strong><\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"

            \u201cWe will face into the storm\u201d On 17 November, Chancellor of the Exchequer Jeremy Hunt delivered his fiscal plan to \u201ctackle the cost-of-living crisis and rebuild our economy\u201d stating that the government\u2019s three priorities are \u201cstability, growth and public services.\u201d The Chancellor struck a defiant tone during the key fiscal event, saying he was \u201ctaking […]<\/p>\n","protected":false},"author":12,"featured_media":9535,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[32,39],"tags":[],"hd_content_source":[],"_links":{"self":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/9534"}],"collection":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/comments?post=9534"}],"version-history":[{"count":4,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/9534\/revisions"}],"predecessor-version":[{"id":9540,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/posts\/9534\/revisions\/9540"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media\/9535"}],"wp:attachment":[{"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/media?parent=9534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/categories?post=9534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/tags?post=9534"},{"taxonomy":"hd_content_source","embeddable":true,"href":"https:\/\/new.contentdeployment.co.uk\/tomd\/wp-json\/wp\/v2\/hd_content_source?post=9534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}