Jeremy Hunt Autumn statement: Tax increases & spending cuts as chancellor aims to fill 'fiscal black hole'
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Jeremy Hunt will today reveal the autumn statement for 2022. Ahead of an uncertain economic period in the UK, it is expected to contain a myriad of tax increases and cuts to public spending to help fill the “fiscal black hole” left behind by Liz Truss’ government.
An official time for the announcement has not yet been given, however, it is expected that the Chancellor will address the public around noon.
Many have been anticipating a return to austerity, similar to George Osbourne’s budgets back in the 2010s, although it is now expected Mr Hunt will refute this in his speech.
The fiscal plan is likely to undo the majority of Kwasi Kwarteng’s budget, which sent shock waves through the financial markets back in September.
Support for people covering the cost of escalating energy bills is set to be reined back - while the program will continue, it is believed it will become less generous.
As of right now, a household using an average amount of energy would pay around £2500 a year, however, after the budget, this is expected to rise to £3,000.
It is understood the budget will be 55% spending cuts and 45% tax rises, according to the BBC. Cumulatively, the budget is expected to save the UK government a total estimate of £54 billion.
As well as this, the threshold that dictates the amount of tax you pay based on your earnings is set to be lowered. Originally, people earning £150,000 per year were in the top tax band - now, this is set to be moved down to £125,000 per year.
Inflation in the UK is currently at its highest level in 41 years, sitting at 11.1%. Hunt’s budget will aim to combat this as a priority.
Hunt will be aiming to “balance the books” with the autumn budget, in his own words. He is expected to say: "We are taking difficult decisions to deliver strong public finances and help keep mortgage rates low, but our plan also protects our long-term economic growth. At the same time, we protect the vulnerable, because to be British is to be compassionate."
The budget was initially due to be announced on Halloween, however, for undisclosed reasons, it was delayed until today.