top of page
Search

Autumn Statement key points


The Office for Budget Responsibility judges UK to be in recession, meaning the economy has slowed for two quarters in a row

  • It predicts growth for this year overall of 4.2%, but size of the economy will shrink by 1.4% in 2023

  • Growth of 1.3%, 2.6%, and 2.7% in 2024, 2025 and 2026

  • UK's inflation rate predicted to be 9.1% this year and 7.4% next year

  • Unemployment expected to rise from 3.6% to 4.9% in 2024

  • The UK minimum wage for people over 23 will increase from £9.50 to £10.42 an hour

  • The 45% rate of income tax will be paid on earnings over £125,140, instead of £150,000

  • Income tax personal allowances and the various rate thresholds are to be frozen for further two years, until April 2028

  • National Insurance and inheritance tax thresholds are frozen for further two years, until April 2028

  • Tax-free allowances for dividend and capital gains tax will be be cut next year and in 2024

  • Household energy price cap extended for one year beyond April but made less generous. Typical bills will be capped at £3,000 a year instead of £2,500

  • Households on means-tested benefits will get £900 support payments next year

  • £300 payments to pensioner households, and £150 for individuals on disability benefit

  • Windfall tax on profits of oil and gas firms are to be increased from 25% to 35% and extended until March 2028

  • A new "temporary" 45% tax on companies that generate electricity, will be introduced from January

  • Government will give itself five years to hit debt and spending targets, instead of three years currently

  • Defence spending to be maintained at 2% of national income – this is inline with the NATO target

  • Overseas aid spending kept at 0.5% for the next five years, below the official 0.7% target

Comments


bottom of page