Baachu Special: Autumn Statement 2022

Baskar Sundaram
Baskar Sundaram

Overview

The Chancellor made his Autumn Statement in the House of Commons in which he set out his plan to put public spending on a sustainable footing, get debt falling, and restore stability. He confirmed that his priorities are stability, growth, and public services.

Below is an overview of the main announcements.

A full Baachu summary will be circulated once the suite of documents is published.  

Key Announcements

  • GDP is forecast to shrink by 1.4% next year, before returning to growth in 2024.
  • The OBR has confirmed that global factors are the primary cause of inflation (which it expects to be 9.1% this year, and 7.4% next year). Its forecast will be included in the BSA summary later today.
  • Unemployment is forecast to rise from 3.6% today, to 4.9% in 2024, before falling to 4.1%.
  • Government spending will continue to increase in real terms every year for the next 5 years but at a slower rate.
  • Personal tax thresholds will be maintained at current levels for a further 2 years, until April 2028. The threshold for when the highest earners start paying the top rate of tax will be brought down from £150,000 to £125,140.
  • The Energy Profits Levy is being increased to 35% and will be extended to March 2028. The Government is also introducing a new temporary 45% levy on electricity generators.
  • The Pensions Triple Lock and Pension Credit will be protected and rise in April 2023 by 10.1%.
  • The Chancellor praised the Bank of England for doing an “outstanding job” tackling inflation and said that he will not change its remit.
  • The Government will provide a £13.6bn package of business rates support.
  • The building of new infrastructure such as roads, train lines and communities will be safeguarded by over £600bn in capital investment over the next 5 years. This includes Northern Powerhouse Rail, the HS2 and the East West Rail.
  • The National Living Wage will see its largest ever cash increase to £10.42, and all National Minimum Wage rates will also receive a boost from April 2023.
  • Working age benefits will rise by the rate of inflation at 10.1% and the household benefit cap to be increased from April 2023.

Recent Blog

Baachu/ GROWTH PLAN 2022 – ENERGY

As part of today’s Fiscal Statement, the Chancellor has made the following announcements which will be of particular interest to this committee. Energy prices The Energy

Read More »

P.S. Join 2000 of your peers. Subscribe to the Baachu Bites.

Every Friday evening we'll send you a roundup of the best content and events from Baachu. Make sure you're ready for the week! Subscribe now.

>
Share This