DRINKERS, benefit recipients and pensioners are among the winners of today’s Autumn settlement – along with smokers and the unemployed.
The Chancellor revealed a whole range of financial changes and news affecting Britons in his speech in the Commons today.
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Jeremy Hunt was all smiles in the House of Commons as he made today’s announcement
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The chancellor revealed a whole range of financial changes and updates
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Mr Hunt promised to ‘reduce debt, cut taxes and reward work’ as he unveiled the package Credit: PA
In his second autumn statement since becoming chancellor, Jeremy Hunt set out the government’s financial plan for the rest of the year.
Mr Hunt promised to “reduce debt, cut taxes and reward work” as he unveiled a package aimed at bailing out cash-strapped Britons and boosting the economy.
He detailed the tax and spending changes that the party will implement in the coming months.
These included increases in benefits, increases in pensions and increases in tobacco taxes.
In his autumn statement, Jeremy Hunt announced:
Below, we reveal the winners and losers of the Autumn Statement.
Losers
Workshy benefit claimants
Millions of Britons could lose all benefits if they fail to find work after a certain period of time.
Jeremy Hunt announced his “plan for getting back to work” in an autumn statement.
He warned that there will be stricter sanctions for people who are not looking for work.
He said: “If, after 18 months of intensive support, jobseekers cannot find work, we will launch a program requiring them to take part in compulsory work placements to increase their skills and improve their employability.
“And if they choose not to participate in the job search process for six months, we will close their case and stop their benefits.”
Smokers
Smokers will have to pay significantly more for rolling tobacco and cigarettes.
Chancellor Jeremy Hunt has announced the largest ever increase in tax rates for loose tobacco used in roll-your-own cigarettes.
The government will increase the duty on hand-rolling tobacco by 10% compared to the duty on tobacco escalators.
The usual escalator is the RPI rate of inflation plus 2%.
This means that the tax on rolling tobacco will increase by the IMC level of inflation plus 12%.
Mr Hunt said: “I will increase the duty on hand-rolling tobacco by an extra 10% on top of the tobacco escalator duty.”
Meanwhile, at 6pm on Wednesday, all tobacco products will rise in price by RPI plus 2%, it has been confirmed.
This means an average increase of 29 pence on a pack of 20 cigarettes.
The increase was not expected as this changes in the spring budget.
The previous increase was revealed earlier this year in April, when the price of a pack of cigarettes rose by more than 12%.
Campaigners strongly condemned Hunt’s move, saying the chancellor had “raised two fingers at working class people across the country”.
He’s saving
Savers are also among the “losers” because lifetime ISA penalties have not been abolished, according to some experts.
Consumer champion Martin Lewis is among those who have called on Mr Hunt to use his Autumn Statement to review the “unfair” aspects of savings accounts.
These LISAs are often used by first-time buyers to get on the property ladder.
But the home must cost less than £450,000 – a threshold that has remained the same since the savings scheme was first launched in 2017 despite rising house prices.
The founder of MoneySavingExpert.com (MSE) branded the accounts a “dead duck” product, as buying a property above this amount leaves savers paying a penalty.
Today he tweeted: “Damn. Our Lifetime ISA campaign has failed.
“NO CHANGE to the fact that people who use it to buy a house above £450,000 due to rising house prices will still be penalized by the government and will have less money than they had at the start.”
People with higher incomes
High earners who have been pushed into higher tax brackets will continue to suffer after today’s announcement.
Freezing income tax and National Insurance thresholds until 2028 will leave millions of households worse off.
This freeze, which was announced this time last year, combined with wage increases will continue to pull many more workers into these higher tax brackets.
This means someone on the average UK salary of £33,000 will pay almost £2,557 more in income tax between last November and 2028.
Inheritance of households
The rate at which families start paying Inheritance Tax (IHT) has been frozen since 2009 and has today been extended for two years until April 2028.
This will force more and more households to pay tax as house prices and inflation continue to rise.
All plans to lower thresholds have been delayed until next year.
Shadow chancellor Rachel Reeves asked Jeremy Hunt whether the inheritance tax cut was a “delayed or abandoned decision” in today’s commons.
Home buyers
Another topic that is conspicuously absent from today’s autumn statement was branding.
Stamp Duty Land Tax (SDLT) is a lump sum you must pay when you buy a property above a certain threshold.
The amount you have to pay as a buyer depends on the price and type of property you are buying and after reaching certain thresholds.
The current rate cut means thousands of homebuyers are paying less tax, but this will end in March 2025.
Before the cut, no tax was paid on the first £125,000 of any property purchase.
This is now double the £250,000 for all home purchases.
Many experts and homeowners were hoping for cuts, but they appear to have been delayed until next year.
The winners
Beer drinkers
Drinkers in Britain rejoiced today as Jeremy Hunt confirmed that the price of pints and spirits will remain the same.
In a major victory for the Sun’s Save Our Sups campaign, the chancellor confirmed a freeze on alcohol tax – and extended business rates relief for pubs in the Autumn Statement.
Hunt directly hailed The Sun’s campaign when he announced the pub measure, which will save British drinkers £4.3 billion.
Beer bosses have warned that the average pint in Britain could rise by 20p overnight if Mr Hunt does not intervene.
Applicants for benefits
Millions of households on benefits, including Universal Credit, will see their payments rise by up to £470 next year.
Jeremy Hunt has confirmed that benefit payments will increase in line with September’s rate of inflation.
The increase in payments will come into effect in April 2024, and the average family on Universal Credit will be around £470 a year better off.
There were concerns that the government was planning to use the lower inflation figure to increase social benefits.
The annual inflation rate for September was 6.7%, compared to 4.6% for October.
Pensioners
Pensioners are also set to see a significant increase in their state pension payments of up to £901.
It comes after it was announced that the triple lock on pensions would remain intact.
The amount pensioners receive from the government increases each year to cover expenses such as food and household bills.
Mr Hunt has now confirmed that payments will increase by 8.5% in April 2024.
This is because the triple-lock system sees the state pension rise in line with the highest of: May to July wages, 2.5% or inflation for September.
Not only that, but the standard minimum pension credit will also rise in line with the July pay data to 8.5%.
In addition, Mr Hunt announced he would consult on giving pension savers “the legal right to require a new employer to pay pension contributions into their existing pension”.
It would allow workers to build up a pension “pot for life” under the radical new plans.
Drivers
Motorists can breathe a sigh of relief as the Chancellor did not increase fuel tax today.
Jeremy Hunt has defended the 5p cut in motorist tax in his Autumn Statement today — despite pressure from the Treasury to increase it.
It helped the bean’s main opponent reject calls from officials to scrap the 5p cut, with one source saying: “As always there was internal pressure to increase fuel revenue this autumn but Jeremy said no.”
Thanks to The Sun Keep it Down campaign, fuel duty has been frozen at 57.95p since March 2011 and will be temporarily reduced by a further 5p in 2022.
Workers
Workers will receive a £1,800 pay rise next year, the chancellor confirmed in his speech.
From April next year, the National Living Wage for those over 21 will rise from £10.42 to £11.44.
The increase was announced on Tuesday, but the chancellor confirmed it again today.
It is the biggest increase in the minimum wage in a decade and will apply to over-21s rather than over-23s for the first time.
Meanwhile, self-employed workers will get to keep more of their hard-earned money thanks to a big tax change.
Workers will receive an income boost of up to £350 thanks to the end of Class 2 National Insurance (NIC) contributions.
In addition, the average employee will receive a £450 pay rise thanks to a two percentage point cut in the main National Insurance rate.
Renters
Renters will receive a significant increase in their housing benefits.
Chancellor Jeremy Hunt confirmed in his Autumn Statement today that the Government will increase Local Housing Benefit for the first time since April 2020.
In his speech, he confirmed that Local Housing Allowance will increase to cover the cheapest 30% of rents in the local market.
This means that anyone renting a home that is in the cheapest 30% of private rental properties in their area should be able to cover their entire rent with Housing Benefit.
The chancellor has been under pressure from charities such as Crisis and Shelter, as well as private landlords and MPs, to increase the allowance.
Meanwhile, first-time buyers and savers are getting extra support under several changes hidden in the Autumn Statement documents.
We also reveal all the changes to universal credit and benefits announced in the autumn statement.
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Prime Minister Rishi Sunak was all smiles this morning ahead of the autumn summer announcement Credit: Rex
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The chancellor’s announcement was welcomed by pub owners and landlords Credit: PA: Press Association
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