Autumn statement - latest: Jeremy Hunt will ‘slash national insurance for 28 million’ in tax cut budget

Jeremy Hunt is set to cut national insurance for 28 million people as he unveils a crackdown on benefits claimants in tomorrow’s Autumn statement.

In the statement, the chancellor is expected to reduce the headline rates of national insurance for employees and the self-employed.

A one per cent cut would be worth £380 a year to someone earning more than £50,000 but could cost the government somewhere in the region of £5billion, according to The Times.

It comes as Rishi Sunak will threaten to cut benefit payments to hundreds of thousands of people with mobility and mental-health problems unless they find work they can do from home.

The prime minister will tell them to find jobs or face a benefits cut of £4,680 a year if they do not in a bid to get more people back to work.

But leading disability charity Sense warned the plans risked punishing disabled people as they would be put under “more pressure to find work” without the necessary support required to do so.

Key Points

• Hunt to unveil benefits crackdown in budget

• Sunak and Hunt can only make ‘tiny tax cuts’, expert warns

• PM: Now is the time for tax cuts

• Call me Lord: David Cameron officially becomes peer

• Labour would be as dangerous as Truss - Sunak

James Cleverly denies claims he called Stockton North a s***hole

16:13 , Matt Mathers

Home secretary James Cleverly has denied claims that he called a Labour MP’s constituency a “shithole”.

Alex Cunningham, MP for Stockton North, alleged the comment was made during Prime Minister’s Questions.

Speaking in the Commons later, the Labour MP for Stockton North called out the Home Secretary and demanded an apology.

Mr Cleverly’s spokesman said: “He did not say that, and would not. He’s disappointed people would accuse him of doing so.”

Ben Hatton reports:

James Cleverly denies claims he called Stockton North a s***hole

Has Hunt set ‘ticking time bomb’ of austerity for Labour government?

16:03 , Matt Mathers

The Office for Budget Responsibility (OBR) said the chancellor Jeremy Hunt has spent “virtually all” of the £27bn-worth of “fiscal headroom” – mainly on the £21bn cost of tax cuts, plus some more on the cost of welfare reforms, writes Adam Forrest.

But the OBR also warned that the windfall spent on tax cuts “is mainly a reflection of a £19.1bn erosion in the real value of departmental spending.”

The OBR said “a 2.3 per cent a year real terms fall in day-to-day spending” would “present challenges” – polite speak for painful spending cuts.

So does it mean austerity ahead? Ian Mulheirn, an economist at the Resolution Foundation think tank said it showed the “completely implausible implications” of the tax cuts.

Stephanie Flanders, head of economics at Bloomberg, said it left a “ticking time bomb” for whoever is in charge in the next parliament.

Reminder: Ask Sean O’Grady anything about the autumn statement

15:41 , Matt Mathers

The Independent’s associate editor Sean O’Grady is on hand to explain how tax cuts and benefits reforms could affect your wallet and confidence in the Tory party.

Register to submit your question in the comments box under this article. If you’re not already a member, click “sign up” in the comments section to leave your question. For a full guide on how to comment click here.

Don’t worry if you can’t see your question – they may be hidden until Sean joins the conversation to answer them. Then join us live on this page at 5pm as Sean tackles as many questions as he can:

Ask Sean O’Grady anything about the Autumn Budget

Marie Curie: People who are dying are to unwell to work

15:34 , Matt Mathers

People who are dying are too unwell to work, cancer charity Marie Curie has said as it criticised a lack of targeted support for the terminally ill.

The charity welcomed Jeremy Hunt’s decision to raise benefits in line with inflation but said canncer patients needed more help with their energy bills.

Dr Sam Royston, Marie Curie executive director of policy and sesearch, said: The chancellor said that the best way to tackle poverty is through work.

“Simply put, many people who are dying are too unwell to work and will die before they are old enough to claim their State Pension. They needed more targeted support today. Particularly with energy bills.

“Any suggestion that people with a terminal illness would be forced back to work would be inhumane.

The government must confirm that, regardless of what reforms are introduced to Work Capability Assessments, all terminally ill people will be exempt from having to look for work.”

National insurance cut will not help low or high earners

15:22 , Matt Mathers

The IFS said Mr Hunt’s national insurance cut was largely or entirely offset by the impact of his and Mr Sunak’s tax threshold freezes, Matt Mathers and Archie Mitchell report.

The influential think tank said full-time minimum wage employees, earning £20,800 per year, will only gain £165 per year from the cut, while being hit by £413 in so-called stealth taxes.

It said a full-time worker earning the average salary of £35,000 per year will gain £449 from the cut, which will be almost wiped out by £413 in extra tax due to frozen thresholds.

And a high earner on £60,000 per year will pay more than twice as much additional tax as what they save on national insurance contributions.

IFS director Paul Johnson said average earners will benefit “slightly” from the change while “low earners and high earners will still be worse off”.

Failure to tackle social care crisis shameful, say unpaid carers

15:16 , Matt Mathers

It’s "shameful" Mr Hunt’s statement did not tackle the crisis in social care, according to a charity for unpaid carers, Jane Dalton reports.

Kirsty McHugh, head of the Carers Trust, said: "More than 100 measures were announced in the Autumn Statement and it is shameful that not one of them gets anywhere near easing a social care crisis that is causing so much suffering for so many. The system remains starved of investment and still has no long-term funding plan.

“For a chancellor who claims the best way to tackle poverty is through work, it’s scandalous that there is next to nothing in his Autumn Statement to help make that a reality for unpaid family carers. There are around seven million of them in the UK and many are being driven into poverty by having to give up paid work so they can look after loved ones."

Big spending cuts on the way, warns IFS

15:15 , Jane Dalton

Paul Johnson of the Institute for Fiscal Studies (IFS) has pointed out that Jeremy Hunt announced a “long-term cash freeze in investment spending”, saying it was a “significant real cut” and “not good for growth”.

The IFS economist also said the 1 per cent per year increase in resource spending was “incredibly tight” and would mean “a lot of public services will see cuts”.

Mr Johnson said the autumn statement meant another year of very tight spending and left the long-term tax burden at the same record level.

He added: “Cut in tax rates today [will be] paid for by uncertain spending restraint tomorrow.”

Watch: Rachel Reeves quotes The Independent during Budget clash with Jeremy Hunt

14:58 , Matt Mathers

Rachel Reeves has called time on Rishi Sunak’s government, declaring that “the ravens are leaving the tower” as she highlighted The Independent’s revelation that Saatchi & Saatchi was no longer backing the party

The shadow chancellor used The Independent’s disclosure that Richard Huntington, strategy chief of the advertising firm that helped Margaret Thatcher become prime minister, to attack the “cruel” Conservatives and forecast a Labour election victory in response to Jeremy Hunt’s autumn statement.

Watch the clip here:

Rachel Reeves quotes The Independent during Budget clash with Jeremy Hunt

Hunt missed chance to drive nature renewal, says RSPB

14:53 , Jane Dalton

The RSPB has accused Jeremy Hunt of missing an opportunity.

Jeff Knott, director of policy and advocacy at the bird and wildlife charity, said: “Nature is in crisis, yet the UK government is silent. With barely a word in the Autumn Statement about actions to tackle the nature and climate emergency, it is hard to see how we can get nature’s recovery on track in time for 2030.

“The natural world underpins everything in our lives, including the economy, and there is strong evidence to show that investing in nature improves our long-term economic performance.

“This was a chance for Chancellor Jeremy Hunt to prove that the UK government is committed to promises made to protect and restore 30% of our land and sea by 2030.

“There was rightly a push for better infrastructure and housing, but there was nothing about how these can help drive nature’s renewal.”

Sunak decision 'may delay switch to electric vehicles’

14:50 , Jane Dalton

Buried in the OBR forecasts is a warning that Rishi Sunak’s decision to delay a ban on new petrol and diesel car sales “may result in some consumers delaying a switch to EVs”.

The spending watchdog said another law, the Zero Emission Vehicle (ZEV) mandate, is now the main driver of people transitioning to electric cars.The mandate sets a minimum share of cars and vans sold by each manufacturer to be zero emission.

As a result of the changes, and slower than expected take-up of electric vehicles so far, the OBR has significantly lowered its forecast for the speed of the transition away from petrol and diesel cars.

Taxes still set to hit post-war high – OBR

14:44 , Jane Dalton

The tax burden is still on course to hit a post-war high, the Office for Budget Responsibility has confirmed.

Despite Jeremy Hunt’s claiming to have delivered the biggest tax cut since the 1980s, the official forecaster said the tax burden would rise every year to a post-war high by 2028-29.

The OBR said: “Tax changes in this autumn statement reduce the tax burden by 0.7 per cent of GDP but it still rises every year to a post-war high of 37.7 per cent of GDP by 2028-29.

The news will enrage right-wing Tory MPs, who have piled pressure on Mr Hunt over rising taxes.

‘Cynical attack’ on disability benefits will be devastating, say charities

14:31 , Jane Dalton

A coalition of disability charities says the government is attacking those on disability benefits by introducing harsh measures designed to encourage them back to work.

Anastasia Berry, of the consortium and MS Society, said the plans would “deprive people with severe health problems of £390 a month and push more disabled people into poverty in the middle of a cost-of-living crisis”.

She added: “The government claims a radical shift towards home-working since the pandemic can justify removing support for those with mobility issues. But only one in ten jobs advertised this year have offered this option.”

Hunt cheeky to claim biggest business tax cut, says IFS

14:23 , Jane Dalton

Paul Johnson, the director of the Institute for Fiscal Studies (IFS), said it was a “tiny bit cheeky” of Jeremy Hunt to claim he had delivered “the biggest business tax cuts in modern British history”.

The respected economist pointed out that today’s measures were “in part designed explicitly to offset a much bigger (in long term) corporation tax increase”.

Reeves: Has inheritance tax cut been delayed or abandoned?

14:21 , Jane Dalton

Rachel Reeves has urged Jeremy Hunt to confirm whether a widely briefed inheritance tax cut has been delayed or abandoned.

The shadow chancellor said Mr Hunt had spent two weeks “marching Tory MPs up a hill only to march them down again on inheritance tax”.

It was reported that the chancellor was considering halving the rate but that an announcement has now been delayed until the spring Budget.

“So can the chancellor tell the house today: is cutting inheritance tax a decision delayed or a decision abandoned?” Ms Reeves asked.

Mr Hunt did not speak for a second time after delivering his Budget.

House prices to fall 4.7% next year, say OBR experts

14:19 , Jane Dalton

House prices are expected to grow marginally by 0.9% this year, but then drop by 4.7% next year, according to the Office for Budget Responsibility.

Hunt claims he has delivered biggest tax cut since 1980s

14:11 , Jane Dalton

Jeremy Hunt claimed to have delivered the biggest tax cut since the 1980s, as he boasted that the British economy had “turned a corned” under his watch.

Mr Hunt told the Commons – as Rishi Sunak grinned behind him – “I’ve today delivered the biggest business tax cuts in modern British history.”

He finished his autumn statement by saying: “We are delivering the biggest business tax cut in modern British history, the largest ever cut to employee and self-employed National Insurance and the biggest package of tax cuts to be implemented since the 1980s.”

Tory mismanagement has left working families exposed, claim Labour

14:07 , Jane Dalton

Working families have been “skating on thin ice for too long”, Labour said.

Shadow chancellor Rachel Reeves said: “The Chancellor and the Prime Minister say that the cost of living crisis is dealt with. Now everything might look a little bit better 10,000ft up in your helicopter, but down here on planet Earth people are approaching Christmas and the year ahead with worry and trepidation.

“The cost-of-living crisis has hit us harder because Tory mismanagement has left us so exposed, 11 million UK households don’t have enough savings to cover three weeks of living expenses if they needed it.

“Working families have been skating on thin ice for too long and as their resilience has been eroded, so has our national economy’s.”

Reeves: ‘Even Saatchi and Saatchi are saying the Tories are not working'

13:57 , Matt Mathers

Rachel Reeves has said the “ravens are leaving the tower” when Saatchi and Saatchi “are saying the Tories are not working.”

The shadow chancellor said “Britain can not afford another five years of Conservatives” as she attacked the government’s record on the economy.

“Mr Speaker, the ravens are leaving the tower when even Saatchi and Saatchi are saying the Tories are not working,” she told MPs.

Earlier this month The Independent reported that Saatchi and Saatchi, the ad agency behind Margaret Thatcher’s “Labour isn’t working” attack, was predicting a win at the next election for Keir Starmer’s party.

Read more here:

Boss of ad agency that helped Thatcher win attacks ‘cruel’ Tories

'Taxes will be higher at next election than last one’

13:48 , Jane Dalton

Taxes will be higher at the next election than they were at the last, shadow chancellor Rachel Reeves has said.

She told the Commons that she has “long argued that taxes on working people are too high”.

She said: “From their failure to uprate income tax or national insurance bands, to forcing councils to raise council tax, the Conservatives have pushed the costs of their failure onto others.

“But the British people won’t be taken for fools. They know that what has been announced today owes more to the cynicism of a party desperate to cling onto power than the real priorities of this high-tax, low-growth Conservative Government.

“So I think we can forgive taxpayers for not celebrating when they see the truth behind today’s announcements. Going into this statement the Government had already put in place tax increases worth the equivalent of a 10p increase in national insurance.

“So today’s 2p cut will not remotely compensate for the tax (increases) already put in place by this Conservative Government. The fact is that taxes will be higher at the next election than they were at the last.”

UK inflation to stay higher for longer, OBR confirms

13:47 , Matt Mathers

The Office for Budget Responsibility has revised up its forecasts for inflation in the UK, Archie Mitchell reports.

After predicting in March that the rate of price rises would fall rapidly from a peak last year toward the Bank of England’s 2 per cent target by early 2024, it has now said it will stay higher for longer.

The OBR said it will take until the second quarter of 2025 to return to the 2 per cent target, more than a year later than it forecast in March.

Working people worse off under Tories - Reeves

13:42 , Matt Mathers

Working people are “worse off” despite the government’s promises, shadow chancellor Rachel Reeves told the Commons.

After describing the “damage” caused by the Conservatives, she said: “Nothing that has been announced today will remotely compensate.

“Mortgages rising, taxing eating into wages. Inflation high, with prices still going up in the shops. Public services on their knees. And too many families struggling to make ends meet.

“As the sun begins to set on this divided, out-of-touch, weak Government, the only conclusion that the British people will reach is this: after 13 years of Conservatives the economy is simply not working, and despite all the promises today, working people are still worse off.”

Reeves: Growth has hit a dead end under the Conservatives

13:40 , Matt Mathers

Speaking in the Commons following the autumn statement, shadow chancellor Rachel Reeves said: “Today the chancellor has lifted the lid on 13 years of economic failure.

“The chancellor claims that the economy has turned a corner, yet the truth is under the Conservatives growth has hit a dead end.

“What has been laid bare today is the full scale of the damage that this government has done to our economy over 13 years.”

Chancellor’s budget ‘not good for growth’

13:39 , Archie Mitchell

The director of influential think tank the Institute for Fiscal Studies (IFS) has said Jeremy Hunt’s spending plans are “not good for growth”.

Just minutes after the chancellor took to his feet in the commons to set out plans to revive Britain’s flatlining economy, Paul Johnson slammed Mr Hunt’s cash freeze in public sector investment.

Mr Johnson said: “The chancellor just announced a long term cash freeze in investment spending. That's a significant real cut of course.

“We already have public sector investment well below that in most comparable countries. That is not good for growth.”

Homelessness charity Crisis say ‘no room for complacency’ after housing benefit uplift

13:39 , Matt Mathers

Crisis have welcomed the chancellor’s decision to uprate housing benefit for the first time in three years, saying it is "in the short term, the single biggest step the chancellor could take to prevent and end homelessness for tens of thousands of households”, Holly Bancroft reports.

“The three-year freeze on housing benefit has had devastating and far-reaching consequences, with people on the lowest incomes being completely priced out of renting," chief executive Matt Downie said.

However he warned: “While the chancellor’s decision to tackle homelessness in the short-term is a positive step, there is no room for complacency. The next UK government must sustain this investment, otherwise we will see homelessness rise again.”

Disability charity: Autumn statement ‘gives with one hand and takes with another’

13:37 , Matt Mathers

Disability charity Sense has criticised Jeremy Hunt for "heaping pressure onto disabled people to find work", Holly Bancroft reports.

They said the autumn statement had "given with one hand and taken away with the other".

Although they praised the uprating of benefits with inflation, chief executive Richard Kramer said it "doesn’t address the fact that payments are currently too low for many disabled people to live healthy, dignified lives".

Rachel Reeves: Nothing that has been announced today will compensate for years of Tory ‘failure'

13:34 , Matt Mathers

Rachel Reeves, the shadow chancellor, is responding to the autumn statement.

She says nothing that has been announced today will compensate for years of Tory “failure”.

Rachel Reeves has lashed out at Jeremy Hunt’s autumn statement, saying “nothing that has been announced today will compensate” for years of Tory failure.

“The centrepiece of today’s autumn statement is a cut in the headline rate of national insurance,” the shadow chancellor said.

She added: “I’m old enough to remember when the Prime Minister wanted to put up national insurance as recently as January last year.”

“It was a tax on working people, and we opposed it for that very reason,” Ms Reeves said.

Homelessness sector pleased with Local Housing Allowance uplift

13:31 , Matt Mathers

Rich Henderson, CEO at Homeless Link, the membership body for homeless services in England said, he was "pleased" that Jeremy Hunt had uplifted the Local Housing Allowance, Holly Bancroft reports.

"It’s no secret that homelessness and rough sleeping are spiralling while local authority and charity services are buckling under the pressure. Raising LHA will at least mean people on low incomes have more breathing space, allowing them to access more affordable housing options while helping prevent homelessness caused by rent arrears," he said.

He criticised increased benefit sanctions, saying they are "not effective in helping people into work".

Boost for millions as national insurance is cut by 2 percentage points

13:28 , Matt Mathers

Jeremy Hunt has announced a cut to national insurance in a boost to around 28 million people, Archie Mitchell reports.

Despite saying only two months ago that slashing tax rates was “virtually impossible”, Mr Hunt has reduced the rate of the levy by two percentage points.

For those who earn less than £12,570 a year, it will make no difference because the lowest-paid don’t pay into National Insurance.

Workers earning up to £50,200 currently pay 12 per cent in national insurance, while the self-employed pay 9 per cent.

But it means somebody on the average salary of £35,000 will save more than £450 a year

Wine and spirits industry welcomes alcohol duty freeze

13:24 , Matt Mathers

The wine and spirits industry has welcomed the freeze to alcohol duty, saying it comes as “a huge relief” to a sector that has “taken a battering”.

Wine and Spirit Trade Association chief executive Miles Beale said: “The alcohol duty freeze comes as a huge relief to wine and spirit businesses and the hospitality sector who have taken a battering over the last few years.

“Following the introduction of an entirely new alcohol tax regime and huge hike in August, the latest data shows a worrying decline in sales, which concerns businesses of all sizes and which would result in less revenue for the Exchequer.

“A second duty rise would have been disastrous.

“We are pleased that the frustrations of consumers, who are fed up with never ending price rises, and of businesses struggling with the cost and complexities of the new system have been heeded.

“These are ongoing concerns about the impact of the new regime, which need to be kept under review. We implore the chancellor and his team to lock in the freeze until at least the end of this parliament. This will keep people in jobs and mean consumers will still be able to enjoy a drink at a price they can afford.”

Jeremy Hunt and Mel Stride confirm new benefits crackdown

13:23 , Matt Mathers

Jeremy Hunt and work and pensions secretary Mel Stride have launched a new crackdown on benefit claimants who do not find work within 18 months, Archie Mitchell reports.

The chancellor and Mr Stride will cut payments by thousands of pounds to those who do not comply with new rules.

But ministers have been criticised for trying to “punish” disabled people and those with mental health issues back into work by encouraging them to work from home.

The government has also been slammed for threatening to cut off free prescriptions and dental treatment, help from energy suppliers and cheaper mobile phone packages for those on universal credit.

Mr Hunt said the measures will halve the number of people who are signed off work with no requirement to look for work.

Those who do not find a job after 18 months will then be given six months before their payments are cut off.

NI boost for self-employed

13:21 , Matt Mathers

Chancellor Jeremy Hunt also announced changes designed to help self-employed workers, hailing them as the people who “kept our country running during the pandemic”.

Mr Hunt said: “Class 2 national insurance is a flat rate compulsory charge, currently £3.45 a week, paid by self-employed people earning more than £12,570 which gives state pension entitlement.

“Today, after careful consideration and in recognition of the contribution made by self-employed people to our country, I can announce we are abolishing class 2 national insurance altogether, saving the average self-employed person £192 a year.

“Access to entitlements and credits will be maintained in full and those who choose to pay voluntarily will still be able to do so.”

Mr Hunt also turned to class 4 national insurance paid at 9% on all earnings between £12,570 and £50,270.

Mr Hunt said: “I have decided to cut that tax by one percentage point to 8% from April. Taken together with the abolition of the compulsory class 2 charge, these reforms will save around two million self-employed people an average of £350 a year from April.”

Business rates relief extended and tax breaks on investment made permanent

13:19 , Matt Mathers

Jeremy Hunt has extended a freeze on the business rates multiplier for small businesses, which determines the level of the tax firms pay, Archie Mitchell and Kate Devlin report.

And the chancellor extended a 75 per cent discount on business rates for retail, hospitality and leisure businesses which have struggled to bounce back from the pandemic.

The chancellor extended both the reliefs for an additional year, hailing the measures as a “large” tax cut costing £4.3bn. “This will save the average independent company over £12,800 next year,” Mr Hunt said.

Mr Hunt has made permanent the temporary tax break for businesses knows as “full expensing”, which allows companies to offset any investments.

The tax break, which costs £11bn a year, had been set to expire in 2026.

Budget: What’s in and out of Jeremy Hunt’s autumn statement?

13:16 , Matt Mathers

Jeremy Hunt has declared Britain’s economy “back on track” as he prepares to announce a cut to national insurance and extend a £10bn-a-year tax break for businesses.

Rishi Sunak’s chancellor is set to offer a national insurance cut for 28 million workers in a bid to keep Tory MPs happy, and boost the party’s fortunes in the polls ahead of the general election.

Mr Hunt claimed his plan for the British economy “is working”, but Labour accused the Tories of “making working people worse off”. Here’s a closer look at what’s in the autumn statement.

Adam Forrest takes a look at what made it into the statement and what did not.

Budget: What’s in and out of Jeremy Hunt’s autumn statement?

Office for Budget Responsibility confirms GDP growth downgrade

13:14 , Matt Mathers

The Office for Budget Responsibility has set out Britain’s growth forecasts, confirming the major downgrade set out by Jeremy Hunt, Archie Mitchell reports.

The OBR downgraded next year’s GDP growth forecast from an expectation in March of 1.8 per cent to just 0.7 per cent.

A pension pot for life

13:10 , Matt Mathers

Pension savers will have the right to have “one pension pot for life”, Jeremy Hunt said.

The chancellor told MPs: “I will also consult on giving savers a legal right to require a new employer to pay pension contributions into their existing pension pot if they choose, meaning people can move to having one pension pot for life.

“These reforms could help unlock an extra £75 billion of financing for high-growth companies by 2030 and provide an extra £1,000 a year in retirement for an average earner saving from 18.”

Mr Hunt said he would also take forward “further capital market reforms, to boost the attractiveness of our markets, and the UK one of the most attractive places to start, grow and list a company”.

Paul Johnson: Chancellor’s budget ‘not good for growth’

13:09 , Matt Mathers

The director of influential think tank the Institute for Fiscal Studies (IFS) has said Jeremy Hunt’s spending plans are “not good for growth”, Archie Mitchell and Adam Forrest report.

Just minutes after the chancellor took to his feet in the commons to set out plans to revive Britain’s flatlining economy, Paul Johnson slammed Mr Hunt’s cash freeze in public sector investment.

Mr Johnson said: “The chancellor just announced a long term cash freeze in investment spending. That’s a significant real cut of course.

“We already have public sector investment well below that in most comparable countries. That is not good for growth.”

He also said that local authorities will be able to recover the full costs of planning applications if they prompt deadlines.

He also revealed legislative plans allow house to be converted into two flats.

13:07 , Matt Mathers

Jeremy Hunt made a jibe at shadow chancellor Rachel Reeves during his autumn statement, Lucy Neeson reports.

Hunt told the Commons: “Let’s start with inflation. The shadow chancellor didn’t mention it in her conference speech. My conference speech was before hers so all she had to do was a bit of copying and pasting which I’ve heard she’s good at.”

On Ms Reeves’ Labour’s conference speech, he added: “It speaks volumes that during the worst global inflation shock for a generation, it didn’t even get a mention.”

Watch the clip here:

Jeremy Hunt takes ‘copy and paste’ swipe at Rachel Reeves during autumn statement

£50m to increases apprentices in ‘key growth sectors'

13:05 , Matt Mathers

Chancellor Jeremy Hunt announced £50 million over the next two years to try to increase the number of apprentices in engineering and “key growth sectors” where there are shortages.

On planning, Mr Hunt said it takes “too long” to approve infrastructure projects and business planning applications.

He said: “Many businesses say they would be willing to pay more if they knew their application would be approved faster.

“So from next year, working with the communities secretary, I will reform the system to allow local authorities to recover the full costs of major business planning applications in return for being required to meet guaranteed faster timelines.“

“If they fail, fees will be refunded automatically with the application being processed free of charge.”

On housing, Mr Hunt said the government would invest £110 million over this year and next to deliver “high-quality nutrient mitigation schemes, unlocking 40,000 homes” and consult on a new permitted development right to allow any house to be converted into two flats provided the exterior remains unaffected.

£10,000 off your energy bill if you live near a new pylon

13:00 , Matt Mathers

People living near planned pylons and electricity substations are set to receive up to £10,000 off their bills over 10 years, Kate Devlin reports.

The move is designed to get large infrastructure projects moving over objections by so-called “nimby” campaigners.

But fuel poverty campaigners warned Mr Hunt that the £1,000-a-year subsidy would help many wealthy Britons in the countryside, while many others struggling with their bills face a dire choice between heating or eating.

UK will continue to meet Nato committment of 2% of GDP on defence

12:57 , Matt Mathers

Chancellor Jeremy Hunt said the government would continue to meet its Nato commitment to spend 2 per cent of GDP on defence

On veterans, Mr Hunt said: “I will extend national insurance relief for employers of eligible veterans for a further year and provide £10 million to support the Veterans’ Places, Pathways and People programme.”

UK on target to get debt falling, Hunt says

12:52 , Matt Mathers

The chancellor said the UK would meet its goal of having debt falling as a percentage of GDP.

Jeremy Hunt told the Commons that the economy had “outperformed expectations” since last year’s autumn statement, adding: “We therefore meet our fiscal rule to have underlying debt falling as a percentage of GDP in the final year of the forecast, with double the headroom compared to the OBR’s March forecast.

“And we continue to have the second lowest government debt in the G7 – lower than the United States, Canada, France, Italy or Japan.”

Jeremy Hunt freezes alcohol duty

12:48 , Matt Mathers

The chancellor has announced a freeze on alcohol duty, Archie Mitchell reports.

The duty on many spirits and wines rose in August in the first increase since 2020 – but the chancellor has now frozen the rate under pressure from the hospitality industry.

It will remain frozen until next August and Jeremy Hunt also reaffirmed the government’s so-called Brexit pubs guarantee, meaning pints in pubs are taxed less than those bought from shops.

Triple lock saved

12:46 , Matt Mathers

The chancellor announced that the state pension will rise by 8.5 per cent from April, in line with the so-called ‘triple-lock’, Kate Devlin reports.

The pledge was brought in by David Cameron when he was prime minister.  It means the rate is increased by average earnings, inflation or 2.5 per cent – whichever is highest.

The chancellor had considered “tweaking” the formula, to strip out bonuses, a move that would have allowed him to increase pensions by 7.8 per cent.

But that prompted negative headlines and an internal row within the Conservative party.

In-work benefits rise with inflation at 6.7 per cent

12:45 , Matt Mathers

Jeremy Hunt also confirmed in-work benefits will rise in line with September’s inflation figure of 6.7 per cent, Archie Mitchell reports.

The chancellor had considered using the lower 4.6 per cent inflation figure from October to uplift inflation, in a bid to save £3bn.

But on Wednesday Mr Hunt confirmed those claiming the benefits would see their rate increased in line with September’s higher figure as usual.

Mr Hunt said it would represent an increase of £470 for 5.5 million households next year, describing it as "vital support to those on the very lowest incomes".

Hunt expresses horror at attack on Israeli citizens

12:44 , Matt Mathers

Chancellor Jeremy Hunt expressed his “horror” at the attack on Israeli citizens on October and the subsequent loss of life on both sides.

He said: “I am deeply concerned about the rise of antisemitism in our country, so I am announcing up to £7 million over the next three years for organisations like the Holocaust Educational Trust to tackle antisemitism in schools and universities.

“I will also repeat the £3 million uplift to the Community Security Trust.

“When it comes to antisemitism and all forms of racism, we must never allow the clock to be turned back.”

Hunt: We’ll reduce debt, cut taxes and reward work

12:43 , Matt Mathers

The government will “reduce debt, cut taxes and reward work”, the Chancellor said.

Jeremy Hunt told the Commons: “In today’s autumn statement for growth our choice is not big government, high spending and high tax because we know that leads to less growth, not more.

“Instead we reduce debt, cut taxes and reward work.

“We deliver world class education. We build domestic sustainable energy.

“And we back British business with 110 growth measures – don’t worry, I’m not going to go through them all – which remove planning red tape, speed up access to the national grid, support entrepreneurs raising capital, get behind our fastest growing industries, unlock foreign direct investment, boost productivity, reform welfare, level up opportunity to every corner of the country, and cut business taxes.”

Our plan is working, claims Hunt – who starts with joke about his wife

12:40 , Matt Mathers

Jeremy Hunt started his autumn statement by claiming: “Our plan for the British economy is working, but the work is not done”, Adam Forrest reports.

“We have supported families with rising bills, cut borrowing and halved inflation. The economy has grown. Real incomes have risen,” said the chancellor.

He said the Conservatives “reduce debt, cut taxes and reward work” and said his party “know that a dynamic economy depends less on the decisions and diktats of ministers than on the energy and enterprise of the British people”.

Mr Hunt also started his speech with a joke. “It’s my wife’s birthday. Unlike me, she’s looking younger every year.”

Hunt begins autumn statement

12:38 , Matt Mathers

Chancellor Jeremy Hunt said the government’s plan for the British economy is “working” but added that the “work is not done”, as he began his autumn statement.

‘He’s through the looking glass this one'

12:37 , Matt Mathers

Starmer says increased waiting lists are not evidence of the government “getting things done”, as Sunak claimed at the end of his last answer.

“He’s through the looking glass this one,” he adds.

The Labour leader then reminds MPs that Sunak did not answer how many people were on mental health waiting lists.

He says Sunak knows the answer but doesn’t want to give it - “1.2 million, 200,000 are children”.

Starmer adds some of those children have been waiting two years.

Starmer hits out at claim statement will ‘turbo charge’ economy

12:31 , Matt Mathers

Keir Starmer has hit out at Jeremy Hunt’s claim his autumn statement will “turbo charge” economic growth, Kate Devlin reports.

The Labour leader slammed high NHS waiting lists, which he said were holding the country back.

AT PMQs he asked Rishi Sunak how if a worker has “to wait a year for an operation … are they supposed to grow the economy?”

He also condemned the high numbers waiting for mental health care.

This includes 200,000 children with some waiting nearly two years to be seen.

Sunak attacks NHS in Wales

12:29 , Matt Mathers

Sunak dodges the question, saying record sums have been invested in mental health services.

The PM then says the “union action he fails to condemn” has had an effect on the health services - several hundred thousand appointments being cancelled.

He adds that in Wales, over 70,000 people are waiting over 18 months for treatment.

Sunak says these sorts of waits have been eliminated in England.

‘He really needs to take some responsibility'

12:22 , Matt Mathers

Starmer fires back, saying more than double the entire population of Wales is on a waiting list in England.

“He really needs to take some responsibility”, he adds.

The Labour leader then asks Sunak how many people are on mental health waiting lists.

Sunak: We’re doing an ‘enormous' amount on NHS waiting lists

12:20 , Matt Mathers

Sunak says the government has done an “enormous amount” to tackle NHS waiting lists.

He says the government has broadened patient choice and introduced new diagnostic centres and put new doctors and nurses on wards.

PM goes on the attack over the NHS in Wales, where Labour is in charge.

He says that, after 25 years in power, the NHS there is missing “every one one of his targets”.

Starmer: half a million more on waiting lists

12:15 , Matt Mathers

Starmer hits back saying the reason Sunak left out the NHS is because 7.8 million people are currently on waiting lists.

He says that’s “half a million more” than when the PM first pledged to reduce them nearly a year ago.

The Labour leader then asks how a labourer or a carer is able to help grow the economy if they are having to wait a year for an operation on the health service.

Sunak: We’ve invested ‘record’ sums in NHS

12:12 , Matt Mathers

Sunak responds by saying that his government invested “record” sums in the NHS when he came to office.

He adds that he introduced the first-ever long-term workforce plan.

Sunak now moves on to his five pledges, three of which he says are based on the economy.

He says he’s pleased to report that the government has halved inflation, grown the economy and reduced debt.

Sunak ribbed on five pledges

12:07 , Matt Mathers

Starmer uses his first question to tease the prime minister over his latest five pledges.

“Let’s hope he has more success with these than the last ones”, he says.

He then asks Sunak if he forgot to include the NHS in his priorities.

PMQs kicking off shortly

11:59 , Matt Mathers

Rishi Sunak and Keir Starmer are about to clash at PMQs.

The leader of the opposition is likely to tackle the PM on the economy ahead of the autumn statement.

Stay tuned for all the latest updates.

Tories need to claw back just 6 pts to deny Labour a majority - poll

11:35 , Matt Mathers

The Tories could deny Labour a majority by clawing back just 6 percentage points, according to a poll.

Most surveys give the opposition a double-digit lead, with some putting Keir Starmer’s party up 20 percentage points ahead.

But if Rishi Sunak’s party can win back just six points from voters who would have otherwise stayed at home or supported one of the UK’s minor political parties, Labour would be denied a Commons majority, according to data published by research consultancy Stonehaven, first reported by Bloomberg.

Sunak plans new immigration crackdown on foreign worker families

11:25 , Matt Mathers

Sunak plans new immigration crackdown on foreign worker families as migration figures set to hit record high.

Rishi Sunak is planning a series of new immigration crackdown measures, as he prepares for fresh Conservative party anguish over record-high migrant numbers.

With the PM under huge pressure to get on top of illegal arrivals, official figures to be published on Thursday are expected to show net migration has surged to unprecedented levels.

Sunak plans new immigration crackdown as migration figures set to hit record high

Hunt promises 110 measures for growth as he seeks to boost Tory election hopes

11:12 , Matt Mathers

Jeremy Hunt will declare the economy is “back on track” as he announces plans to cut national insurance and extend a £10 billion-a-year tax break for businesses.

The chancellor said the autumn statement contains “110 different measures to help grow the British economy”.

With an eye on next year’s general election, Mr Hunt is expected to offer a national insurance cut for 28 million workers and make permanent the “full expensing” regime allowing firms to reduce their tax bills when they invest.

Full report:

Hunt promises 110 measures for growth as he seeks to boost Tory election hopes

Measures will make ‘big difference’ to entrepreneurs, says Hunt

11:10 , Matt Mathers

Jeremy Hunt said he hoped the autumn statement’s measures would make a “really big difference” to entrepreneurs, Adam Forrest reports.

In a social media video, the chancellor said: “I’m thinking of my own business, that I set up over 30 years ago,” the chancellor said.

“I want to help thousands of other people do what I did, and I hope today will make a really big difference.”

What happens now?

10:57 , Matt Mathers

We’ve had the social media posts, the press briefings and the customary shot of the chancellor leaving No 11 Downing Street.

So what happens next? The cabinet met this morning to sign off the statement and the rest of us now wait to see what is in it that hasn’t already been announced.

Rishi Sunak and Keir Starmer will face off at PMQs as usual at 12pm, in a session that is likely to be dominated by the economy.

Jeremy Hunt will then deliver his statement from the dispatch box between 12.30 and 12.40pm.

ICYMI: Hunt’s ultimatum to the disabled - WFH or lose your benefits

10:41 , Matt Mathers

Jeremy Hunt has been accused of trying to “punish” disabled people while offering tax cuts the Conservatives hope will turn around their electoral fortunes.

The chancellor is preparing to use the autumn statement to ease the tax burden on businesses and individuals, as he seeks to boost economic growth and win over disillusioned voters.

Hunt’s ultimatum to the disabled: WFH or lose your benefits

Why now is the time for Jeremy Hunt to rescue the high street

10:40 , Matt Mathers

The cost of living crisis is making life for shops tougher than at any point since the pandemic, writes James Moore.

But cutting business rates in the autumn statement will save more businesses going to the wall while we decide what we want from the high street.

Read James’s full report here:

Why now is the time for Jeremy Hunt to rescue the high street

Hunt on his way to Commons

10:35 , Matt Mathers

Jeremy Hunt has left Downing Street and is on his way to the House of Commons to deliver his autumn statement.

The chancellor is due to set out his Budget following PMQs at around 12.40pm.

He is expected to cut taxes, increase the national minimum wage and reform pensions.

In a social media video published last night ahead of the statement, the chancellor said the statement had “110 different measures to help grow the British economy”.

“I’m thinking of my own business, that I set up over 30 years ago,” the chancellor said.

“I want to help thousands of other people do what I did, and I hope today will make a really big difference.”

Editorial: Why the chancellor’s ‘back to work’ plans won’t work

10:24 , Matt Mathers

There are good reasons why the chancellor needs to get more people – including those with long-term illness and disabilities – into the labour market.

But his final autumn statement before the general election is not about empowering our most vulnerable – it’s all about the politics.

Read the full editorial here:

Why the chancellor’s ‘back to work’ plans won’t work

What tax cuts can we expect, and will they make it harder for Labour?

10:00 , Matt Mathers

Jeremy Hunt and Rishi Sunak have been dropping hints about tax cuts in Wednesday’s autumn statement, and it also seems that there will be some benefits reforms to get people back into the labour market, writes Sean O’Grady.

It’s a sharp change in mood compared to even a few months ago, and ministers hope it may signal a political as well as an economic turning point.

But what tax cuts can we expect and will they make a dent Labour’s double-digit lead in the polls? Read Sean’s full piece below:

What tax cuts can we expect, and will they make it harder for Labour?

IfG: Press ‘briefing frenzy’ shows UK should revert to one budget per year

09:49 , Matt Mathers

The press “briefing frenzy” ahead of today’s autumn statement shows that the UK should revert to having one Budget per year, the Institute for Government (IfG) has said.

Most of the major announcements in today’s statement have already been made public in press reports.

“In a recent episode of their podcast, Ed Balls and George Osborne bemoaned the official preference (shared by IfG) for a single fiscal event a year – something that is the norm in most other countries,” IfG senior fellow Jill Rutter writes in a blog post.

“According to them, officials in search of a quiet life want to deny a chancellor the chance to make the political weather, by halving his opportunities to dominate the broadcast schedules and grab headlines.

“This week’s autumn statement is now being touted as another chance for a reset, in an autumn of resets.

“An opportunity for Rishi Sunak and Jeremy Hunt to declare an economic corner has been turned, to spend the fiscal ‘headroom’ created by the combination of higher than expected inflation with the decision to freeze tax allowances (and quite possibly public service budgets) in cash terms.”

Hunt warned forecasts can ‘go down’ - as well as up

09:32 , Matt Mathers

Jeremy Hunt has been warned that economic forecasts can “go down” as well as up after official figures showed the UK had borrowed less than expected.

Government borrowing between April and October totalled £98.3bn, the Office for National Statistics said on Tuesday - about £22bn higher than in the same period last year but nearly £17bn pounds less than the OBR forecast.

The has given but the chancellor some “fiscal headroom” to spend in today’s statement.

But the Institute for Government has warned there is a risk the OBR is over-optimistic at a time when the world economic outlook is very uncertain.

“The OBR has quite often found spare cash for a chancellor to spend – and our instant gratification chancellors tend to be unable to resist spending any margin that emerges instantly,” Jill Rutter, a senior fellow at the think tank writes in a blog post.

“There is a risk: that the OBR is overoptimistic at a time when the world economic outlook is very uncertain. Hunt’s final risk is that lower (though still miles above target) inflation is less baked in than he and the prime minister hope.

“Inflation surprised on the low side in November but it is still very vulnerable to global energy price movements.”

What does the autumn statement mean for my money and the Tory party? Ask Sean O’Grady anything

09:16 , Matt Mathers

The Independent’s associate editor Sean O’Grady is on hand to explain how planned tax cuts and benefits reforms could affect your wallet and confidence in the Tory party.

If you have a question on the autumn statement, submit it now, or when Sean joins live at 3pm on Wednesday 21 November for the “Ask Me Anything” event.

Register to submit your question in the comments box under this article (below).

If you’re not already a member, click “sign up” in the comments section to leave your question. For a full guide on how to comment click here.

Don’t worry if you can’t see your question – they may be hidden until Sean join the conversation to answer them.

Then join us live on this page at 3pm as Sean tackles as many questions as he can.

Ask Sean O’Grady anything about the Autumn Budget