Inheritance tax
The move made by the chancellor on inheritance tax (IHT) to is likely to net more than £1bn for the government by the end of the 2027/28 tax year, Office for Budget Responsibility (OBR) forecasts show. The IHT freeze is set to remain in place until 2028, the government confirmed, as part of what Hunt labelled a range of "difficult decisions" around tax needed to stabilise Britain's troubled economy.
Dividend tax allowance and CGT thresholds cut
The government is halving the dividend tax allowance, falling from £2,000 to £1,000 next year and to £500 from 2024.
Hunt also said the annual capital gains tax exemption will fall from £12,300 to £6,000 next year, and then be cut to £3,000 from April 2024.
OBR published forecast
Meanwhile, the OBR published a fresh forecast alongside the Autumn Statement, warning that inflation would remain high over the next year, averaging 9.1% this year and 7.1% in 2023.
The OBR also revealed the UK has tipped into a recession, which is expected to last "just over year" at the current rate.
Unemployment was forecast to rise by 505,000 from 3.5% to peak at 4.9% in the third quarter of 2024 as the recession progressed.
Three-pronged growth strategy revealed
Hunt highlighted three key growth areas to target: energy; infrastructure; and innovation.
To target these, he announced a nuclear power station at Sizewell C would be going ahead, while big infrastructure projects like Northern Rail and the HS2 would also continue.
He also announced planned changes to regulation in five growth industries of "digital, life sciences, green industries, financial services and advanced manufacturing".
Windfall tax and green economy
The windfall tax on oil and gas companies will increase from next year from 25% to 35%.
The chancellor also reaffirmed the government's commitment to the Glasgow agreement made at COP26 last year, targeting a 68% reduction in emissions by 2030.
However, he introduced measures to institute a 45% levy on electricity generators, while expanding road tax to electric vehicles from 2025.
Business rates package
A £13.6bn package to support companies dealing with higher business rates bills was also revealed which included freezing the business rates multiplier for another year.
HM Treasury confirmed that as a result of the package, the total increase in business rates bills will be less than 1%, compared to over 20% without intervention.
Other measures in the package included extended and increased relief for retail, hospitality and leisure businesses, worth almost £2.1bn.
Furthermore, the bank corporation tax surcharge rise to 25% will still go ahead, meaning that banks will be charged an additional 3% rate on profits above £100m from April next year.
Bank of England independence reaffirmed
Hunt reaffirmed the government's commitment to Bank of England independence, arguing it had done an "outstanding job" and the country needed "fiscal and monetary policy to work together".
He said the Treasury and the central bank needed to "work in lockstep", adding the bank's remit would not be changed.
Tax hikes and freezes
Hunt warned of a "substantial tax increase" in the Autumn Statement, though he said tax as a percentage of GDP would only increase by 1%.
The top income tax threshold of 45% is set to be reduced from £150,000 to £125,140.
The stamp duty cuts, which were announced in the Mini Budget, will remain in place, but only until 31 March 2025.
The state pension triple lock will be retained, while council tax is set to rise further, with councils able to raise the tax by up to 5% rather than the current 2%.
Cost of living help
To help with energy costs, the government's Energy Price Guarantee (EPG) scheme will be extended, but made less generous.
An average household using a typical amount of gas and electricity will pay £3,000 annually, up from £2,500, as the EPG softens. The scheme will run for 12 months from April.
Also announced was targeted support for those on low incomes, disability benefits and pensioners, with payments of £900 to be made to those on means-tested benefits, £300 to pensioner households and £150 to people on disability benefits.
Benefits will also rise in line with inflation, the chancellor confirmed.
Solvency II reform package
The government has set out its final reform package for the regulation of insurance companies in the UK following its consultation on the review of Solvency II.
It said it would introduce a "simpler, clearer, and much more tailored regime", cutting the required risk margin significantly, with a 65% cut for long-term life insurance business.
