The Autumn Statement at a glance

Taxation: Mr Hunt said he would be “asking more from those who have more” but said it would mean difficult decisions.

The plans he announced will see:

More people paying the top rate, 45%, of income tax.

People who earn more than £125,140 will start paying the higher rate instead of only those on £150,000.

The 40% tax threshold will be frozen until 2028, meaning that in the coming years as wages rise more people will pay the higher rate of tax. The 20% threshold will also be frozen.

Huge increase in windfall taxes on oil and gas companies and the profits of renewable and nuclear power generators. It is forecast to raise £14bn next year.

Wages: The UK minimum wage for people over 23 will increase from £9.50 to £10.42 an hour from April 2023.

Benefits and pensions: Benefits will also rise by 10.1% from April. On average a family on Universal Credit will benefit by around £600.

The pensions triple lock will also be retained meaning pensions will rise in line with inflation at 10.1%.

The Chancellor said this was the “biggest ever cash increase in the state pension”.

Energy: Energy bill support will be extended after April but it will be less generous than this winter.

More than eight million households on means-tested benefits will receive a cost-of-living payment of £900 in instalments, with £300 to pensioners and £150 for people on disability benefits.

The Energy Price Guarantee, which is protecting households throughout this winter by capping typical energy bills at £2,500, will continue to provide support from April 2023 with the cap rising to £3,000.

With prices forecast to remain elevated throughout next year, this equates to an average of £500 support for households in 2023-24.

The Chancellor announced a package of targeted support which the Treasury says is worth £26bn.

Tax on energy companies: The Chancellor said he will increase the Energy Profits Levy from 25% to 35%. Mr Hunt told the Commons: “I have no objection to windfall taxes if they are genuinely about windfall profits caused by unexpected increases in energy prices. This would only be temporary.

“But any such tax should be temporary, not deter investment and recognise the cyclical nature of many energy businesses. Taking account of this, I have decided that from January 1 until March 2028 we will increase the Energy Profits

Levy from 25% to 35%.”

On a windfall tax on electricity generators, he said: “The structure of our energy market also creates windfall profits for low-carbon electricity generation so, from January 1, we have also decided to introduce a new, temporary 45% levy on electricity generators. Together these taxes raise £14bn next year.”

The economy and public finances: The Chancellor said the Office for Budget Responsibility believed the UK was already in recession.

It predicts growth for this year overall of 4.2%, but the size of the economy will shrink by 1.4% in 2023.

The UK’s inflation rate is predicted to be 9.1% this year and 7.4% next year. Unemployment is expected to rise from 3.6% to 4.9% in 2024.

The NHS and education: There will be extra funding for the NHS and for education in England, which will mean an extra £1.2bn for the Welsh Government next year as health is devolved and will be absorbed in this allocation.

Government spending: Defence spending to be maintained at 2% of national income – a Nato target.

Overseas aid spending kept at 0.5% for the next five years, below the official 0.7% target.