Chancellor announces tax rises and spending cuts in the Autumn Statement
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Chancellor Jeremy Hunt speaking in the House of Commons today unveiled the contents of his Autumn Statement revealing expected tax rises and spending cuts aimed at tackling the nation's financial situation.
The legally-enforceable minimum wage for people aged over 23 is set to increase from £9.50 to £10.42 an hour from next April.
State pension payments and means-tested and disability benefits are set to increase by 10.1 per cent.
The Scottish tax system allows for different banding and changes here are expected to be confirmed during the fiscal statement on December 15.
The Top 45 per cent additional rate of income tax will be paid on earnings over £125,140, instead of £150,000 in England
Income tax personal allowance and higher rate thresholds frozen for further two years, until April 2028
You start to pay income tax on annual earnings of more than £12,570.
In Scotland at present the system works as follows -
Starter rate £12,571 to £14,732 - 19 per cent.
Basic rate £14,733 to £25,688 - 20 per cent.
Intermediate rate £25,689 to £43,662 - 21 per cent.
Higher rate £43,663 to £150,000 - 41 per cent.
Main National Insurance and inheritance tax thresholds will also be frozen for further two years, until April 2028
Tax-free allowances for dividend and capital gains tax also due to be cut next year and in 2024, dropping from £12,000 to £6000 and then £3000.
For energy the household energy price cap extended for one year beyond April but made less generous, with typical bills capped at £3000 a year instead of £2500
Windfall tax on profits of oil and gas firms has been increased from 25 per cent to 35 per cent and extended until March 2028
A new "temporary" 45 per cent tax on companies that generate electricity, to apply from January
It was also announced that electric cars, vans and motorcycles are to pay road taxes from April 2025.
Commenting on the announcement Banff and Buchan MP David Duguid said: “The Chancellor’s Autumn Statement shows we are the only party with a clear and honest plan to tackle inflation and help families with the cost of living.
“Despite the global economic challenges our country is facing, the UK Government is delivering more money for schools and the NHS as well as a plan to boost economic growth.
“As well as a confirmed triple-lock on pensions, a record increase in the National Living Wage and an inflation-based rise in benefits, an additional £1.5 billion will also go to the Scottish Government.
“Difficult decisions have had to be made but this announcement means we don’t have to choose between a strong economy or good public services – we can have both.”
On the Energy Profits Levy/windfall tax he added: “I am aware of concerns from the industry about the Energy Profits Levy, but it is important to remember there is a very generous investment allowance incentive attached to it - something opposition parties’ proposals for a windfall tax did not include.
“The UK Government is committed to achieving energy security and transition goals and I am engaging heavily with the industry and ministers to ensure this is done most effectively.”
