Today the Government has set out in the Autumn Statement how it will restore economic stability, protect key public services, help control inflation, and boost growth
- Tackling inflation is top of the priority list to stop it eating into paycheques and savings, and disrupting business growth plans
- £26 billion of support for the cost of living, including continued energy support, as well as 10.1% rises in benefits and the State Pension and the largest ever increase in the National Living Wage
- Necessary and fair tax changes will raise around £25 billion, including an increase in the Energy Profits Levy and a new tax on the extraordinary profits of electricity generators
- Decisions on spending set to save £30 billion whilst NHS and Social Care get access to £8 billion and schools get an additional £2.3 billion reflecting people’s priorities.
- To deliver prosperity, the Government has committed to infrastructure projects including Sizewell C and Northern Powerhouse Rail, along with protecting the £20 billion R&D budget
Leo Docherty MP has welcomed the Chancellor's Autumn Statement, as it aims to restore stability to the economy, protect high-quality public services and build long-term prosperity for the country. Public spending for the next two years will be protected at the levels set out in 2021 and then increase by one per cent in real terms a year until 2027–28, with an extra £11 billion in funding over the next two years for the NHS and schools.
£12 billion of extra targeted support is also being provided next year to help eight million low income, vulnerable and pensioners households, on top of the cost of living payments being provided this year. This means additional payments of £900 for people on means-tested benefits, £300 for pensioners, and £150 for disabled people to help with their energy bills.
The Government is delivering on its commitment to protect the most vulnerable by uprating benefits in line with inflation and protecting the pensions Triple Lock. Every household will be supported with higher energy bills following the announcement that the Energy Price Guarantee will be extended until April 2024, with a price cap increase from April 2023 meaning a typical household’s energy bills will be capped at £3,000. The Conservative Government’s plan for stabilising the economy and protecting the public finances is fair and involves a roughly equal split between tax rises and spending cuts.
The National Living Wage (NLW) will rise to £10.42 from 1 April 2023, an increase of 92 pence, or 9.7%. This ensures the NLW continues on track to reach the Government’s target of two-thirds of median earnings by 2024.
Windfall taxes on energy companies are being extended and increased, and instead of raising personal tax rates, the Government is freezing personal tax thresholds for a further two years. It has announced that the Additional Rate threshold will be reformed, so that a taxpayer who earns more than £150,000 will pay £1,200 more in tax per year. Changes to the dividends allowance and Capital Gains Tax Annual Exemption Amount will mean the greatest burden falling on those who can afford it most.
This will support boosting growth, with £600 billion in capital investment over the next five years protected, along with the Levelling Up Fund, the UK Shared Prosperity Fund, R&D spending, and a £14 billion business rates cuts package to support high street businesses.
Commenting, Leo Docherty MP said:
"Prudent fiscal management will ensure the Government can restore economic stability, tackle inflation, and deliver investment for our public services. The decisions announced in the Autumn Statement have been so done so on fairness, showing the Government is prepared to take tough, but necessary, decisions to boost the economy.
"By protecting the most vulnerable with an extensive package of energy support, increases in benefits and the State Pension, and a rise in National Living Wage, the Government is ensuring those with the broadest shoulders are carrying the heaviest load. Even in these tough times, the Government is continuing to invest in our schools and NHS across Aldershot."