The impact of Covid and Putin's war in Ukraine meant that yesterday's Autumn Statement from the Chancellor was always going to be a difficult balancing act. The Government has made the difficult decisions necessary to guide our country and economy through these challenges whilst doing everything possible to protect the most vulnerable in our society.
Key announcements include:
✅More money for the NHS, Schools and Social Care, an increase of £11bn in funding over the next 2 years. Improving skills and education in Blyth Valley will help people to take new and better jobs.
✅Benefits increasing in line with inflation, by 10.1%.
✅Pension triple lock confirmed meaning pensions will rise more than ever before.
✅Energy Price Guarantee extended from April 2023 to April 2024.
✅£12bn extra to support most vulnerable, including £900 for households on means tested benefits, £300 for pensioners, and £150 for those with disabilities.
✅Increasing National Living wage by 9% to £10.42, raising annual incomes for lower earners by £1,600. That is the largest ever increase.
✅Social Housing rent increases frozen below inflation.
These increases in public spending will be funded through:
📌An increase in the energy levy on oil and gas companies, from 25% to 35%.
📌A new 45% temporary levy placed on electricity generators.
📌Reducing the threshold for the 45p tax rate from £150,000 to £125,140.
📌Freezing the tax-free allowance for income tax for the next two years.
📌Cutting the thresholds for capital gains tax, inheritance tax, and dividend tax.
