THE MAIN POINTS FROM CHANCELLOR JEREMY HUNT’S AUTUMN STATEMENT

Growth and recession

■ The OBR has said that the UK is “now in recession”, Mr Hunt said, but he added “overall this year, the economy is still forecast to grow by 4.2%”.

Pay and support with the cost of living

■ The energy price guarantee scheme will increase from £2,500 for the average household to £3,000 for 12 months from April, Mr Hunt confirmed.

■ The Government will introduce additional cost-of-living payments for the “most vulnerable”, with £900 for those on benefits, £300 for pensioners and £150 for those on a disability benefit.

■ Mr Hunt has accepted a recommendation to increase the national living wage by 9.7%, making the hourly rate £10.42 from April 2023.

Inflation

■ The OBR forecasts the UK’s inflation rate to be 9.1% this year and 7.4% next year.

■ The Chancellor confirmed the Bank of England’s remit will not be changed and it has his “wholehearted support in its mission to defeat inflation”.

Tax

■ Mr Hunt reduced the threshold at which the top rate of income tax is paid from £150,000 to £125,140, but said he was not raising headline rates of taxation.

■ Electric vehicles will no longer be exempt from Vehicle Excise Duty from April 2025 to make the motoring tax system “fairer”.

■ Mr Hunt increased the windfall tax on oil and gas giants from 25% to 35% and imposed a 45% levy on electricity generators to raise an estimated £14 billion next year.

■ On business rates, Mr Hunt said the Government will proceed with the revaluation of business properties from April 2023.

■ The stamp duty cuts announced in the mini-budget will remain in place but only until March 31 2025.

■ The Chancellor rejected calls to put VAT on independent school fees.

Spending and benefits

■ Mr Hunt said “with just under half of the £55 billion consolidation coming from tax, and just over half from spending, this is a balanced plan for stability”.

■ The Chancellor said he would not cut “a penny” from Government capital budgets over the next two years, and would then maintain them at that level for the next three years.

■ Working age and disability benefits will increase in line with inflation, with a rise of 10.1%, costing £11 billion.

■ State pensions will increase in line with inflation in April, as Mr Hunt announced the “biggest ever cash increase in the state pension”.