The Chancellor of the UK, Jeremy Hunt, announced a greater than expected cut in National Insurance during his Autumn Statement. While the main rate will go down from 12% to 10% from January, previous tax changes will mean that many workers will not benefit significantly from the changes. Mr Hunt also confirmed that universal credit will now rise by 6.7% and the state pension will increase by 8.5% from April.
During his hour-long speech, Hunt asserted that the government had put the economy “back on track” by reducing borrowing and halving inflation. He said that as a result, he had room to cut taxes to stimulate economic growth, but while a tax break for companies investing in new equipment was confirmed as being made permanent, the Office for Budget Responsibility reported that the proportion of the UK’s income being paid in tax will still reach its highest level in seventy years.
The SNP’s economy spokesman, Drew Hendry, criticised Hunt’s announcement, saying the Chancellor had “pulled the wool over many peoples’ eyes”. Rachel Reeves, Labour’s shadow chancellor, accused Hunt of damaging the economy over 13 years of Conservative government. Liberal Democrats considered the announcement to be evidence that the government is both “deceptive” and “out of touch”.
Additional measures announced in the Autumn Statement included the extension of a 75% business rates discount for a further year, unfreezing the Local Housing Allowance to assist those with rent payments, increased tobacco duty, and a freeze on alcohol duty until August 2023. Eight growth measures were also presented, including 500 million pounds ($0.67 billion) for AI research, tax relief for TV and film production, and 4.5 billion pounds ($6.05 billion) to attract investment into manufacturing industries
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