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Autumn Statement 2022 live stream: What time Jeremy Hunt’s budget speech starts today and how to watch

Chancellor Jeremy Hunt will ship his Autumn Assertion right this moment, along with his focus firmly on decreasing the nation’s deficit.

It comes within the wake of stories that UK inflation rose to 11.1 per cent in October – a 41-year excessive. Excessive inflation, precipitated largely by hovering power costs, has led to a price of residing disaster that leaves many households and companies struggling to make ends meet.

You are reading: Autumn Statement 2022 live stream: What time Jeremy Hunt’s budget speech starts today and how to watch

The Chancellor has warned that “choices of eye-watering issue” lie forward, including that the Authorities “might be asking everybody for sacrifices”.

Right here’s the whole lot you want to know concerning the Autumn Assertion, together with the best way to watch and what to anticipate.

What time is the Autumn Assertion?

Autumn Statement live: Chancellor Jeremy Hunt delivers budget statements in Commons

The Autumn Assertion is anticipated to be delivered by the Chancellor at 11.30am within the Home of Commons.

There’ll then be a press release on the state of the financial system and a response to former chancellor Kwasi Kwarteng’s disastrous September mini–Price range at 2pm by the Workplace for Price range Accountability.

How can I watch stay?

There might be a stay stream of the Autumn Assertion proper right here on this web page.

You can even watch it on BBC Information and Sky Information on tv. BBC Information might be accessed on-line by way of BBC iPlayer, whereas Sky Information has a stay YouTube feed.

What might Jeremy Hunt announce?

The Chancellor’s plans might be in stark distinction to the tax cuts introduced by Mr Kwarteng. In his first speech as Prime Minister, Rishi Sunak mentioned the nation was “dealing with a profound financial disaster”, pledging to “place financial stability and confidence on the coronary heart of this Authorities’s agenda”.

Eliminating the deficit over the subsequent 5 years might require greater than £30bn of fiscal tightening. This might imply spending cuts of as much as 2 per cent, much like the ranges of austerity seen below the Coalition authorities in 2010.

Mr Hunt is about to unveil a £54bn bundle of tax hikes and spending cuts. Right here’s what he might announce.

Public sector pay

It has been reported that the Chancellor might resolve to restrict public sector pay will increase to 2 per cent, making it virtually sure that NHS employees, police and academics will as soon as once more undergo a real-terms pay minimize, given the elevated ranges of inflation.

This comes after nurses voted to strike over pay this week. The transfer could be unpopular, however the Chancellor might argue it’s essential, as public sector pay is the Authorities’s largest outgoing.

Pensions and advantages

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Mr Hunt appears set to maintain the state pension triple lock intact, and will additionally increase advantages consistent with inflation. This might price a mixed £11bn subsequent 12 months, however would forestall a rebel from some Tory MPs and avert not less than some criticism that the selections are unfair.

Members of Cupboard, together with Michael Gove, have beforehand warned towards going again on the manifesto dedication of sustaining the pensions “triple lock” as inflation soars previous 11 per cent.

The Authorities can be conscious that elevating pensions consistent with inflation, however not doing so with advantages, would draw criticism that it doesn’t care about society’s most susceptible folks. However with Mr Hunt contemplating as much as £35bn of “fiscal tightening”, any additional spending would go away extra extreme financial savings and better tax hikes required elsewhere.

Private taxes

The Chancellor might announce freezes to varied tax thresholds, together with revenue and inheritance tax. As chancellor, Rishi Sunak froze revenue tax thresholds till April 2026, and there are strategies that this freeze could possibly be prolonged for one more two years – taking it to April 2028 – in an effort to web the Treasury about £4bn a 12 months.

Freezing the revenue tax thresholds implies that as wages rise, extra folks might be dragged into paying the 40 per cent higher-rate revenue tax bracket, and lots of extra will begin paying revenue tax for the primary time. The present tax thresholds are £12,570 (primary price), £50,270 (larger price), and £150,000 (further price).

The Chancellor can be set to focus on larger earners by decreasing the brink for the upper price of tax from £150,000 to £125,000, costing them about £580 a 12 months. It will have an effect on about 250,000 folks.

Inheritance tax

The speed at which households begin paying inheritance tax has been frozen since 2009, and this freeze could possibly be prolonged. Had it saved tempo with inflation, the start line at which you pay tax could be £460,000 fairly than £325,000.

Inheritance tax is forecast to boost £6.7bn for the Treasury this 12 months – up from £6bn in 2021 and £3.1bn a decade in the past – precipitated each by the frozen threshold and the rise of property costs.

Presently, most households within the UK won’t have to fret about inheritance tax. It is just utilized to belongings value greater than £325,000. If you’re passing on a household dwelling to direct dependants, similar to youngsters or grandchildren, you get an additional allowance of £175,000.

Married {couples}, or these in a civil partnership, can mix their allowances. So households might solely need to pay inheritance tax, which has a tax price of 40 per cent, on estates value greater than £1m.

Enterprise taxes

Mr Hunt has already confirmed that company tax will rise to 25 per cent in April subsequent 12 months. There’s additionally rising hypothesis that the Chancellor might minimize the tax-free dividend allowance from £2,000 to £1,000, and lift the dividend tax price by 1.25 share factors.

Such a transfer could be a serious blow for small companies and entrepreneurs – a complete of six million pay their tax by a restricted firm and they might be affected by any change. A restricted firm proprietor with a turnover of £50,000 a 12 months would pay £5,000 extra in tax below this mix of company and dividend tax rises than an employed particular person on the identical wage.

The present dividend tax charges are 8.75 per cent for primary price taxpayers, 33.75 per cent for larger price taxpayers, and 39.35 per cent for extra price taxpayers, and more cash will fall below this tax if the tax-free price is diminished.

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Value of residing help

It has been reported that the Chancellor might prolong price of residing help, together with a second £650 grant for folks on means-tested advantages, one other £150 cost for folks on incapacity advantages, and one other £300 cost for pensioners.

The Authorities has neither confirmed or denied these experiences.

Nonetheless, all households will face an increase in common power payments, because the Authorities will increase the power worth assure from a median of £2,500 to as a lot as £3,100 from April.

It additionally seems unlikely that the £400 power rebate, that’s being given to all households, might be prolonged.

Minimal wage

The nationwide residing wage might reportedly improve to about £10.40 – an increase of just about 10 per cent – from April 2023. The charges for youthful folks might improve by the same proportion.

Council tax

The Chancellor is reportedly contemplating permitting native authorities to impose bigger rises in council tax subsequent 12 months to boost cash for social care.

It means the common Band D council tax invoice might surpass £2,000 for the primary time ever – one other main blow for households already struggling to maintain up with hovering inflation and power payments.

Underneath present guidelines, councils with social care obligations should set off a referendum to extend council tax by greater than 2.99 per cent.

The Day by day Telegraph has reported that this could possibly be modified to permit rises as much as 5 per cent and not using a public vote.

Windfall tax

In a money-making transfer, the Chancellor might prolong the Power Income Levy – additionally known as the windfall tax – on oil and fuel firms.

Already set at 65 per cent by Mr Sunak, when chancellor, it might now be elevated to 70 per cent and prolong it from 2025 to 2028.

Officers are additionally mentioned to be taking a look at extending the levy past oil and fuel firms to electrical energy mills.

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