Autumn statement: Energy bills help, pensions up and other key announcements from chancellor at a glance
Here are all the main announcements from Chancellor Jeremy Hunt’s autumn statement to MPs:
• Energy bill aid for households extended beyond April for a further year through energy price guarantee, but average annual bill will be £3,000 from current £2,500. Amounts to around £500 support for households.
• Additional cost of living payments next year of £900 to households on means-tested benefits; £300 to pensioner households and £150 for individuals on disability benefit.
Autumn statement – latest reaction
• An additional £1bn of funding to enable a further twelve month extension to the household support fund.
• Government will proceed with the Sizewell C new nuclear plant with £700m investment by taxpayer to bolster energy security and diversify further from harmful carbon.
• New funding, from 2025, of a further £6bn in energy efficiency.
• Working age and disability benefits uprated by inflation with an increase of 10.1% at cost of £11bn.
• Over 600,000 more people on Universal Credit to be forced to meet with a work coach in a bid to get more into the workforce and better-paid jobs.
• Increase in social rents to be capped at a maximum of 7% in 2023/24.
• National Living Wage to rise by 9.7% from April to an hourly rate of £10.42, an annual pay rise worth over £1600 to a full time worker.
• Pension credit to rise by 10.1%, worth up to £1470 for a couple and £960 for a single pensioner. This delivers on promise under the so-called triple-lock.
• Reduces the threshold at which the 45p rate becomes payable from £150,000 to £125,140.
• Maintains freeze on the income tax personal allowance, higher rate threshold, main national insurance thresholds and the inheritance tax thresholds for a further two years – to April 2028.
• Dividend allowance will be cut from £2,000 to £1,000 next year and then to £500 from April 2024.
• The annual exempt amount for capital gains tax will be cut from £12,300 to £6,000 next year and then to £3,000 from April 2024.
• From April 2025, electric vehicles will no longer be exempt from vehicle excise duty.
• Stamp duty cuts announced in the mini-budget will remain in place, but only until 31 March 2025.
• While the employer’s National Insurance contributions threshold is frozen until April 2028, the employment allowance will be retained at its new, higher level of £5,000 until March 2026.
• R&D tax relief for SMEs deduction rate cut to 86% and the credit rate to 10% but increase the rate of the separate R&D expenditure credit from 13% to 20%.
• Windfall tax on major oil and gas producers raised to 35% from 25%. A 45% energy profits levy rate to be imposed on electricity generators to raise a combined £14bn next year.
• Nearly two thirds of properties will not pay a penny more in business rates next year. Says thousands of pubs, restaurants, and small high street shops will benefit to the tune of £14bn over five years.
• By the end of next year, changes to EU regulations in five growth industries: digital technology, life sciences, green industries, financial services and advanced manufacturing will have been decided.
• Plan to help make Britain the “new Silicon Valley” will also see public funding for R&D (research and development) increased to £20bn by 2024/5.
• “We will deliver the core Northern Powerhouse Rail”. Promises existing funding for HS2 to Manchester, East West Rail., new hospitals programme and gigabit broadband rollout.
• Adult social care secures additional grant funding of £1bn next year and £1.7bn the year after. Says this means an increase in funding available for the social care sector of up to £2.8bn and £4.7bn respectively.
• Increases the NHS budget, in each of the next two years, by an extra £3.3bn.
• To invest an extra £2.3bn per year in our schools.
• An extra £1.5bn for the Scottish government, £1.2bn for the Welsh government and £650m for the Northern Ireland Executive.
• Office for Budget Responsibility (OBR) forecasts borrowing in this financial year of £177bn, £140bn in 2023/4.
• OBR sees “overall” UK growth in 2022 of 4.2% but economy now in recession. Contraction of 1.4% expected in 2023.
• OBR sees a rise in unemployment from 3.6% today to 4.9% in 2024.
• OBR sees an average inflation rate this year of 9.1% and 7.4% next year.
• Two new fiscal rules: Underlying debt must fall as a percentage of gross domestic product by the fifth year of a rolling five-year period, and that public sector borrowing must be below 3% of GDP over the same period.
World
UN’s Antonio Guterres condemns ‘teaspoon’ of aid allowed into Gaza after dozens die in airstrikes
The head of the UN has said Israel has only authorised for Gaza what amounts to a “teaspoon” of aid after at least 60 people died in overnight airstrikes.
UN secretary general Antonio Guterres said on Friday the supplies approved so far “amounts to a teaspoon of aid when a flood of assistance is required,” adding “the needs are massive and the obstacles are staggering”.
He warned that more people will die unless there is “rapid, reliable, safe and sustained aid access”.
A woman at the site of an Israeli strike in Jabalia, northern Gaza. Pic: Reuters
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Gaza: ‘Loads of children with huge burns’
Israel says around 300 aid trucks have been allowed through since it lifted an 11-week blockade on Monday, but according to Mr Guterres, only about a third have been transported to warehouses within Gaza due to insecurity.
The IDF said 107 vehicles carrying flour, food, medical equipment and drugs were allowed through on Thursday.
Many of Gaza’s two million residents are at high risk of famine, experts have warned.
Meanwhile, at least 60 people have been killed by Israeli airstrikes across Gaza overnight.
Ten people died in the southern city of Khan Younis, and deaths were also reported in the central town of Deir al-Balah and the Jabaliya refugee camp in the north, according to the Nasser, Al-Aqsa and Al-Ahli hospitals where the bodies were brought.
A body is carried out of rubble after an Israeli strike in Jabalia, northern Gaza. Pic: Reuters
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‘Almost everyone depends on aid’ in Gaza
The latest strikes came a day after two Israeli embassy workers were killed in Washington.
The suspect, named as 31-year-old Elias Rodriguez from Chicago, Illinois, told police he “did it for Gaza”.
Israeli Prime Minister Benjamin Netanyahu accused Sir Keir Starmer, Emmanuel Macron and Mark Carney of fuelling antisemitism following the shootings.
The leaders of the UK, France and Canada are “on the wrong side of humanity and (…) history”, he said, after they threatened “concrete action” against Israel this week if it continues its “egregious” military operations in Gaza.
Mr Netanyahu also accused Sir Keir, Mr Macron and Mr Carney of siding with “mass murderers, rapists, baby killers and kidnappers”.
Palestinians search for casualties in Jabalia, northern Gaza. Pic: Reuters
But UK government minister Luke Pollard told Sky News on Friday morning he “doesn’t recognise” Mr Netanyahu’s accusation.
Earlier this week, Mr Netanyahu said he was recalling negotiators from the Qatari capital, Doha, after a week of ceasefire talks failed to bring results. A working team will remain.
The war in Gaza began when Hamas-led militants attacked southern Israel on 7 October 2023, killing some 1,200 people, mostly civilians, and kidnapping 251 others.
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The militants are still holding 58 captives, around a third of whom are believed to be alive, after most of the rest were returned in ceasefire agreements or other deals.
Israel’s offensive, which has destroyed large swaths of Gaza, has killed more than 53,000 Palestinians, mostly women and children, according to Gaza’s Hamas-run health ministry.
A woman has been arrested after 12 people were reportedly injured in a stabbing at Hamburg’s central train station in Germany.
An attacker armed with a knife targeted people on the platform between tracks 13 and 14, according to police.
They added that the suspect was a 39-year-old woman.
Police at the scene. Pic: AP
Officers said they “believe she acted alone” and investigations into the stabbing are continuing.
There was no immediate information on a possible motive.
The fire service said six of the injured were in a life-threatening condition, three others were seriously hurt, and another three sustained minor injuries, news agency dpa reported.
The attack happened shortly after 6pm local time (5pm UK time) on Friday in front of a waiting train, regional public broadcaster NDR reported.
A high-speed ICE train with its doors open could be seen at the platform after the incident.
Railway operator Deutsche Bahn said it was “deeply shocked” by what had happened.
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Four tracks at the station were closed in the evening, and some long-distance trains were delayed or diverted.
Hamburg is Germany‘s second biggest city, with the train station being a hub for local, regional and long-distance trains.
In mid-May, the World Health Organisation assessed that there were “nearly half a million people in a catastrophic situation of hunger, acute malnutrition, starvation, illness and death”.
“This is one of the world’s worst hunger crises, unfolding in real time,” its report concluded.
Warning: This article contains images of an emaciated child which some readers may find distressing
Israel‘s decision this week to reverse the siege and allow “a basic level of aid” into Gaza should help ease the immediate crisis.
But the number of aid trucks getting in, so far fewer than 100 per day, is considered dramatically too few by aid organisations working in Gaza, and the United Nations accuses Israel of continuing to block vital items.
Israel-Gaza latest: Gaza enduring ‘atrocious death and destruction’, UN boss warns
“Strict quotas are being imposed on the goods we distribute, along with unnecessary delay procedures,” said UN secretary general Antonio Guterres in New York on Friday.
“Essentials, including fuel, shelter, cooking gas and water purification supplies, are prohibited. Nothing has reached the besieged north.”
Nineteen of Gaza’s hospitals remain operational, all of them are overwhelmed with the number of patients and a lack of supplies.
Baby Aya at Rantisi hospital in northern Gaza is dangerously thin
“Today, we receive between 300 to 500 cases daily, with approximately 10% requiring admission. This volume of inpatient cases far exceeds the capacity of Rantisi hospital, as the facility is not equipped to accommodate such large numbers,” Jall al Barawi, a doctor at the hospital, told us.
At least 94% of the hospitals have sustained some damage, some considerable, according to the UN.
Jall al Barawi, a doctor at Rantisi hospital
Paramedic crews are close to running out of fuel to drive ambulances.
The lack of food, after an 11-week blockade, has left thousands malnourished and increasingly vulnerable to surviving injuries or recovering from other conditions.
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Children are the worst affected.
Our team in Gaza filmed with baby Aya at the Rantisi hospital in northern Gaza. She is now three months old and dangerously thin.
Her skin stretches over her cheekbones and eye sockets on her gaunt, pale face. Her nappy is too big for her emaciated little body.
Aya’s nappy is too big for her emaciated little body.
Lethal spiral
Her mother Sundush, who is only 19 herself, cannot get enough food to produce breastmilk. Baby formula is scarce.
Aya, like so many other young children, cannot get the vital nutrition she needs to grow and develop.
It’s a lethal spiral.
This is what Aya looked like shortly after she was born
“My daughter was born at a normal weight, 3.5kg,” Sundush tells us.
“But as the war went on, her weight dropped significantly. I would breastfeed her, she’d get diarrhoea. I tried formula – same result. With the borders closed and no food coming in, I can’t eat enough to give her the nutrients she needs.”
“I brought her to the hospital for treatment, but the care she needs isn’t available.
“The doctor said her condition is very serious. I really don’t want to lose her, because I lost my husband and she’s all I have left of him. I don’t want to lose her.”
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Aya and her mother Sundush
Some of the aid entering Gaza now is being looted. It is hard to know whether that is by Hamas or desperate civilians. Maybe a combination of the two.
The lack of aid creates an atmosphere of desperation, which eventually leads to a breakdown in security as everyone fights to secure food for themselves and their families.
Only by alleviating the desperation can the security situation improve, and the risk of famine abate.
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