CHANCELLOR Jeremy Hunt said his autumn statement would put the UK on a “path to stability” as he unleashed a huge tax hike on oil and gas giants.

Mr Hunt has outlined a package containing “difficult decisions” that amounts to a “substantial tax increase”.

The package represents a significant change from his predecessor Kwasi Kwarteng’s unfunded tax cuts in the disastrous mini-budget less than two months, ago which was widely blamed for having spooked the markets.

Amongst the key points from the autumn statement, Mr Hunt announced new fiscal rules as the Office for Budget Responsibility (OBR) said the UK is “now in a recession”.

The OBR forecasts the UK’s inflation rate to be 9.1 per cent this year and 7.4 per cent next year.

On the cost-of-living crisis, the energy price guarantee scheme will increase from £2,5000 for the average household to £3,000 for 12 months from April.

The Government will introduce additional cost-of-living payments for the “most vulnerable”, with £900 for those on benefits, £300 for pensioners and £150 for those on a disability benefit.

The Chancellor said he will cap the increase in social rents at a maximum of 7 per cent in 2023/24, saving the average tenant £200 next year.

Mr Hunt has accepted a recommendation to increase the national living wage by 9.7 per cent, making the hourly rate £10.42 from April 2023.

 

On health, Mr Hunt said he will increase the NHS budget by an extra £3.3 billion in each of the next two years.

The NHS will be asked to “join all public services in tackling waste and inefficiency”.

Mr Hunt said the NHS would publish an independently-verified plan for the number of doctors, nurses and other professionals needed in five, 10 and 15 years’ time.

He allocated for adult social care additional grant funding of £1 billion next year and £1.7 billion the year after.

On tax, Mr Hunt reduced the threshold at which the top rate of income tax is paid from £150,000 to £125,140, but said he was not raising headline rates of taxation.

He said those earning £150,000 or more will pay just over £1,200 more a year.

Mr Hunt increased the windfall tax on oil and gas giants from 25 per cent to 35 per cent and imposed a 45 per cent levy on electricity generators to raise an estimated £14 billion next year.

On business rates, Mr Hunt said the Government will proceed with the revaluation of business properties from April 2023.

The stamp duty cuts announced in the mini-budget will remain in place but only until March 31 2025.

The Chancellor said he will invest an extra £2.3 billion per year in schools over the next two years.

He said he will maintain the defence budget at at least 2 per cent of GDP.

Mr Hunt said he would move back the managed transition of people from employment and support allowance on to Universal Credit to 2028.

Working age and disability benefits will increase in line with inflation, with a rise of 10.1 per cent, costing £11 billion.

State pensions will increase in line with inflation in April, as Mr Hunt announced the “biggest ever cash increase in the state pension”.