UK chancellor Jeremy Hunt has promised a package of measures to boost growth and cut taxes in a highly political autumn statement.
Mr Hunt’s speech on Wednesday, delivered with an eye on a general election expected next year, said his plan will “raise business investment, get more people into work, reduce inflation” and increase the size of the economy.
The UK's Office for Budget Responsibility (OBR) has upgraded its growth forecast for gross domestic product – a measure of the size of the economy – this year, but downgraded the figure for subsequent years.
Our November 2023 GDP forecast. Full forecast published after the Chancellor’s #AutumnStatement speech pic.twitter.com/ud2jYnL6MH
— Office for Budget Responsibility (@OBR_UK) November 22, 2023
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The budget watchdog’s forecast in March was for the economy to shrink by 0.2 per cent in 2023, but that has now been revised up to 0.6 per cent.
But in 2024, growth is forecast to be 0.7 per cent rather than the 1.8 per cent expected at the time of the budget, 2025 is expected to see 1.4 per cent rather than 2.5 per cent and 2026 could be 1.9 per cent instead of 2.1 per cent.
Growth is then expected to go beyond the previous forecast, with 2 per cent in 2027, slightly above the 1.9 per cent predicted in March, with 1.7 per cent in 2028.
Mr Hunt said universal credit and other benefits will increase by 6.7 per cent, in line with September’s inflation figure, ending speculation the UK government could have used the cheaper October figure.
Mr Hunt also confirmed the triple-lock formula for state pension rises would be implemented as usual, meaning the state pension will rise by 8.5 per cent in line with average earnings, worth up to £900 more a year.
He said: “After a global pandemic and energy crisis, we have taken difficult decisions to put our economy back on track.
“We have supported families with rising bills, cut borrowing and halved inflation.
“Rather than a recession, the economy has grown. Rather than falling as predicted, real incomes have risen.
“Our plan for the British economy is working. But the work is not done.”
In other announcements, Mr Hunt:
– Promised £7 million over three years for organisations to tackle antisemitism.
– Said national debt was forecast by the Office for Budget Responsibility to be lower than previously expected in every year of the forecast through to 2028-29.
– Cut national insurance by an average £350 a year for around two million self-employed people.
– Committed to explore options for a NatWest retail share offer in the next 12 months, potentially offering investors the chance to buy some of the UK government’s stake in the bank.
– Froze alcohol duties until August 2024.
– Extended 75 per cent business rates relief for retail, hospitality and leisure until 2025.
