+++ Fiscal Statement Live Blog +++ mdi-fullscreen


  • Priorities are stability, growth and public services
  • Respond to an international crisis with “British values”
  • OBR confirms global factors are primary cause of inflation
  • A made-in-Russia energy crisis”
  • IMF expects 1/3 of world’s economy to be in recession this year or next
  • Bank of England remit will not be changed, government to work in lockstep with the BoE
  • UK “will always pay its way”
  • Credibility will not be taken for granted


  • Inflation – 9.1% this year and 7.4% next year
  • Inflation will fall sharply from middle of next year
  • UK is now in recession
  • Unemployment to rise to 4.9% in 2024
  • Borrowing – £177bn, next year £140bn then by 2027/28 falls to £69bn
  • Underlying debt as a percentage of GDP starts to fall by 2027/28

Short term

  • As growth slows and unemployment rises, fiscal interventions will be used
  • As a result of these plans, the recession will be shallower – OBR

Longer term

  • As growth returns they increase rate of consolidation, and take pressure off BoE to raise interest rates
  • “A balanced path to stability”


  • Tried to be fair following two principles – those with more should contribute more, and avoid tax rises that damage growth
  • substantial tax increase”
  • Personal taxes:
    • Reduce threshold of 45p rate from £150k to £125k – an increase of £1200
    • Tax free allowances frozen until April 2028
    • Reforming allowances on unearned income, cutting dividend allowance from £2000 to £1000
    • Electric vehicles will no longer be exempt from vehicle excise duty
    • Stamp duty cuts announced in minibudget will only remain in place until 2025
  • Business taxes:
    • 40% of all businesses will pay no NICs
    • £2.8bn by 27/28 from cracking down on tax avoidance
    • Cutting deduction rate for SMEs
  • Windfall taxes:
    • Any tax should be temporary, not deter investment and recognise cyclical nature of energy businesses
    • Increase energy profits levy from 25% to 35%
    • Electricity generation to be levied on electricity generators at 45%

Public spending

  • Public spending to grow spending lower than inflation
  • Departmental budgets to be protected in cash terms
  • Overall spending in public services will continue to rise in real terms for next five years
  • Department for Work and Pensions will be asked to do a thorough review of issues holding back workforce participation
  • Over 600,000 people on universal credit will have to meet with a work coach to increase hours’ earnings
  • Review of state pension age to conclude in 2023


  • UK has given £2.3bn to Ukraine since the start of the invasion, second highest in the world after USA
  • Defence spending needs to increase
  • Integrated review needs updating, ahead of the next budget
  • Will continue to maintain defence budget of at least 2% of GDP


  • Won’t be possible to return to 0.7% until fiscal situation allows
  • Remain about 0.5% for the forecast period

Climate change:

  • Now would be the wrong time to step back from climate responsibilities
  • Remain fully committee to the Glasgow pact, including a 68% reduction in own emissions by 2030


  • Concerns not all school leavers get the skills they need for a modern economy
  • All young people need to leave the education system with the skills they’d get in Japan, Germany or Switzerland
  • Rules out scrapping relief on private school fees
  • Schools’ budget to be increased by £2.3 billion per annum this year and the next


  • On staff shortages, the NHS will publish and independent plan for the number of doctors, nurses and other professionals we’ll need in 5, 10 and 15 year’s time
  • Social care sector, the implementation of Dilnot Reforms will be delayed by 2 years, re-allocating the funding to local authorities
  • £1bn of new grant funding for social care this year, £1.7bn next year.
  • A total increase of funding of £2.8bn this year and £4.7bn next year for social care
  • Former Health Secretary Patricia Hewitt asked to advise on how to make sure local NHS bodies operate efficiently and with appropriate autonomy and accountability
  • NHS budget increased by £3.3 billion in each of the next 2 years

Economic growth:

  • You cannot borrow your way to growth
  • Sound money is the rock upon which long term prosperity rests
  • People, capital and ideas are needed
  • Energy, infrastructure and innovation also needed
  • Over the long term, we need energy independence and energy efficiency
  • Nuclear! Sizewell C is going ahead, confirmed. Creating 10,000 highly-skilled jobs
  • New national target: by 2030 energy consumption by buildings and industry should fall by 15%
    • New funding from 2025 of a further £6bn in investment to deliver this
  • Rail, roads, broadband and 5G
    • Not cutting a penny from capital budgets for the next 2 years, and will remain in cash terms for a following 3 years
    • More than double what it was under the last Labour government
    • HS2, Northern Rail, gigabit broadband etc will all proceed
    • Levelling Up fund will be maintained
  • Local leaders have to be able to make things happen
    • New devolution deals for Suffolk, Cornwall, Norfolk and an area in the North East
    • Soon over half of England will be covered by devolution deals
  • Innovation:
    • Changes to EU regulations in our five growth industries
    • Patrick Vallance asked to lead this work
    • Legislate to give the digital markets unit new powers to challenge monopolies
    • Removing import tariffs on over 100 goods used by UK businesses used in their production
    • R&D budget protected
    • Solvency II reforms

Energy Bills/cost of living

  • Price guarantee will continue from April at a higher level of £3000
  • Additional cost of living payments for most vulnerable on means-tested benefits of £900 plus cash for pensioners and the disabled
  • Social rented sector are currently set to see rents rise by 11%. Increase to be capped to a maximum of 7%
  • Minimum wage to increase by 9.7%. Up to £10.42.
  • Benefits will be uprated by inflation, 10.1%
  • Benefit cap to increase by inflation also
  • Pension credit to increase by 10.1%
  • Triple lock protected
mdi-tag-outline Budget
mdi-account-multiple-outline Jeremy Hunt
mdi-timer November 17 2022 @ 11:31 mdi-share-variant mdi-twitter mdi-facebook mdi-whatsapp mdi-telegram mdi-linkedin mdi-email mdi-printer
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