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Millions more Britons will pay more tax as Jeremy Hunt cut the top-rate threshold and announced freezes on several other taxes in his autumn statement.

The total amount of savings from the autumn statement has been costed at £55bn, through tax rises and cutting government spending.

However, in real-term costs, UK households’ disposable incomes will fall by 7.1% over the next two years – the lowest levels since records began in 1956/7, taking incomes down to 2013 levels, according to the independent Office for Budget Responsibility.

Britons face ‘staggering’ fall in disposable income – live autumn statement updates

Some of the main announcements:

• Higher rate of tax threshold reduced to £125,140
• Benefits and state pension to rise in line with inflation
• Windfall tax extended to March 2028 and increased to 35%
• Electric cars no longer exempt from road tax from April 2025
• An extra £2.4bn per year on schools
• NHS to get £3.3bn and adult social care £1bn next year and £1.7bn in 2024
• Freeze on income tax personal allowance, national insurance and inheritance tax thresholds
• Minimum wage increases to £10.42 an hour
• Social housing rent increases capped at 7% from next year.

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Key announcements from the autumn statement

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More on Autumn Statement 2022

The chancellor said the government is introducing two new fiscal rules: that underlying debt must fall as a percentage of GDP by the fifth year in a rolling five-year period: and public sector borrowing over the same period must be below 3% of GDP.

He said he had “tried to be fair” in his decisions by asking those “with more to contribute more” and avoided tax rises that “most damage growth”.

Mr Hunt promised to “protect the vulnerable” and said his plan to plug what he previously called a fiscal “black hole” will lead to “a shallower downturn and lower energy bills”, while revealing his three priorities: “stability, growth and public services”.

But opposition parties and unions have accused the chancellor of holding the country back, with Labour saying the plan means “working people are paying the price” for the Tories’ “failure”.

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’12 weeks of Conservative chaos’

Higher tax rates for the wealthiest and energy companies

The chancellor said the 45p higher rate of tax will now be payable from £125,140, as opposed to the current £150,000.

He said those earning £150,000 or more will now pay just over £1,200 more a year.

Mr Hunt also expanded and increased the windfall tax, so from 1 January 2023 until March 2028 energy giants will have to pay 35%, instead of the current 25% on their profits.

And there will be a temporary new 45% levy on electricity generators, which is in addition to the tax on the companies that provide energy to households and businesses.

He also said electric car owners will no longer be exempt from vehicle excise duty from April 2025.

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And he announced the government, as expected, will proceed with the building of the new Sizewell C nuclear plant in Suffolk, which will create 10,000 highly skilled jobs and provide energy to the equivalent of six million homes over 50 years.

However, there was no mention of fuel duty in the statement, as the law means it goes up by the Retail Price Index – which is set to be 23% in March next year.

The OBR said that would add £5.7bn to the government coffers and would be a “record cash increase” and the “first time any government has raised fuel duty rates in cash terms since 1 January 2011, with an expected rise of around 12p a litre on petrol and diesel.

It is understood the government is not making a decision on fuel duty now but will in the spring budget next year.

Extra cash for schools and the NHS

Much of the chancellor’s statement had been pre-briefed following the economic turmoil the mini-budget created after his predecessor announced surprise unfunded tax cuts.

But Mr Hunt did pull a rabbit out of his hat as he announced an extra £2.3bn each year will be invested in schools for the next two years.

As was expected, he increased the NHS budget by £3.3bn and said he has asked former Labour health secretary Patricia Hewitt to advise on how to make sure the new Integrated Care Boards work properly. They were introduced in April and are aimed at bringing NHS services in local areas together.

Adult social care will get £1bn more next year and £1.7bn in 2024 and he said altogether, along with previous commitments, that means the government is committing to a “record £8bn” package for the health and social care system.

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‘£8bn package for health and social care’

‘Stealth taxes’

There will be a freeze on income tax personal allowance, the main National Insurance thresholds and inheritance tax thresholds for a further two years, until April 2028.

These have been branded “stealth taxes”, with the freeze on income tax to bring in £6.8bn for the government as more people will be pushed into a higher tax bracket.

On personal income allowances, he said the dividend allowance will be cut from £2,000 to £1,000 next year then to £500 from April 2024.

The annual exempt amount for capital gains tax, which is paid on the profit of selling an asset that has increased in value such as property, will also be cut from £12,300 to £6,000 next year then to £3,000 from April 2024. It means people will have to pay tax at a lower threshold than before.

Cost of living and minimum wage help

On help for energy bills, Mr Hunt said the Energy Price Guarantee will continue for a further 12 months from April 2023 at a higher level of £3,000 per year for the average household. It is currently capped at an average of £2,500.

There will also be additional cost of living payments next year for the most vulnerable, with £900 for households on means-tested benefits, £300 for pensioner households and £150 for those on disability benefits.

Social housing rents will have their increases capped at a maximum of 7% in 2023-24, he added.

And the hourly minimum wage will increase by 9.7% from April next year to £10.42 from the current £9.50.

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Energy price cap to rise again in 2023

Pensions and benefits rise

Mr Hunt committed to maintaining the triple lock on pensions, which promises to increase the state pension each year in line with the highest of inflation, average earnings or 2.5%. At the moment, that is inflation which reached a 41-year high on Wednesday of 11.1%.

From April, pensions will rise in line with inflation of 10.1%, meaning an £870 annual increase.

Benefits will also rise in line with inflation while a further 600,000 people on Universal Credit will be made to meet with a work coach to get more people into the workforce and in better-paid jobs.

Defence and overseas aid

Defence Secretary Ben Wallace had previously said he would quit if the government did not stick to spending 3% of GDP on defence by 2030.

He has tempered his tone since as the economy dived but will have been disappointed by Mr Hunt announcing he is committing to “at least 2%”.

On overseas aid, the chancellor said it will remain at 0.5% as he said the “significant shock to public finances” means it will not be possible to return to the 0.7% target.

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Man, 33, admits selling substance online to assist with suicides

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Man, 33, admits selling substance online to assist with suicides

A man has pleaded guilty to selling a substance online to assist with the suicide of others.

Miles Cross, 33, admitted four counts of intentionally doing an act capable of encouraging or assisting the suicide of another.

Cross provided chemicals to Shubhreet Singh on 22 August last year, Wrexham Magistrates’ Court heard during an October hearing.

Ms Singh, 26, died in West Yorkshire last year.

The three other counts relate to three victims who are alive and cannot be named due to reporting restrictions.

The incidents are said to have happened in August and September 2024.

Police are also investigating a second death in connection with the packages Cross sold online.

Cross arrives at Mold Crown Court to enter his guilty plea
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Cross arrives at Mold Crown Court to enter his guilty plea

Cross had set up a business selling the chemical via an internet discussion forum and interacted with others on the forum under a pseudonym.

He joined the site in July 2024 and posted a QR code, which allowed people to order the chemical directly from him and pay via his bank account.

Cross received payments of £100 from four people and sent them the chemical through the post.

Cross, from Wrexham, was arrested in January following a police investigation into sales via the forum to assist with suicide. Officers found the chemical and other paraphernalia at his address.

His devices were seized, which linked Cross to the forum, social media profiles and the bank account.

“Miles Cross preyed on four people in a distressed state and knowingly provided a substance intended to end their lives,” Alison Storey, specialist prosecutor with the CPS Special Crime Division, said.

“His actions were purely for financial gain, and he made the process of ordering the chemical online easy and accessible.”

Court artist drawing of Miles Cross. Pic: PA
Image:
Court artist drawing of Miles Cross. Pic: PA

She said the case was a “stark reminder of the dangers posed by those who aim to exploit vulnerable individuals online”, adding that the CPS hopes that Cross pleading guilty brings “some measure of justice” to the victims and their families.

North Wales Police’s Detective Superintendent Chris Bell said: “Cross took advantage and exploited his victims in their most desperate moments, profiting off their vulnerability and mental illnesses.

“I hope today’s admission provides the victims and their families with some peace of mind and relief that they are now spared the ordeal of a trial. My thoughts, and those of the whole investigation team, remain with them today.”

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He added: “This has been a highly complex and sensitive investigation over the past 10 months, and I want to acknowledge the courage of the witnesses who played an integral part in the investigation during such difficult circumstances.”

Cross will be sentenced at Mold Crown Court on 7 January.

If you’ve been affected by this story and want to talk to someone, you can call Samaritans free on 116 123 anytime day or night. You can also email jo@samaritans.org or visit www.samaritans.org to find support online.

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Princess of Wales calls on businesses to value ‘time and tenderness’ in rare speech

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Princess of Wales calls on businesses to value 'time and tenderness' in rare speech

The Princess of Wales has delivered a rare speech calling on businesses to value “time and tenderness just as much as productivity and success”, as part of her push to make society put the needs of children first. 

During her first speech since she was diagnosed with cancer at the start of 2024, Kate reflected on the importance of love, telling 80 business leaders, “the love we feel in our earliest years fundamentally shapes who we become and how we thrive as adults”.

But in a call to action for businesses, she added: “Every one of you interacts with your own environment; a home, a family, a business, a workforce, a community. These are the ecosystems that you yourselves help to weave.

“Imagine a world where each of these environments were built on valuing time and tenderness just as much as productivity and success.

“As business leaders, you will face the daily challenge of finding the balance between profitability and having a positive impact. But the two are not, and should not be incompatible.”

Princess of Wales talks with business leaders and attendees at the Future Workforce Summit. Pic: Reuters
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Princess of Wales talks with business leaders and attendees at the Future Workforce Summit. Pic: Reuters

The Princess of Wales leaves after attending the Future Workforce Summit at Salesforce Tower in London.
Pic: PA
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The Princess of Wales leaves after attending the Future Workforce Summit at Salesforce Tower in London.
Pic: PA

At the Future Workforce Summit, hosted by her Royal Foundation Business Taskforce, Kate thanked her team at the Centre of Early Childhood “for holding the fort, particularly over the last couple of years”.

She was also joined by former England manager Sir Gareth Southgate as she called on business leaders to invest more in the early years development of children.

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The event came as The Royal Foundation released a new report called “The Human Advantage”, exploring how, as AI increasingly handles technical tasks, competitive advantage will rely on human skills that technology cannot replicate.

But while the survey found that 81% of business leaders believe there will be an increased need for human skills in the next five to 10 years, very few business leaders identified the unique importance of early childhood in the development of these skills.

Gareth Southgate attends the Future Workforce Summit. Pic: Reuters
Image:
Gareth Southgate attends the Future Workforce Summit. Pic: Reuters

In summer 2024, the Royal Foundation Business Taskforce for Early Childhood produced a report recommending a range of interventions from creating a culture inside and outside firms that prioritises childhood to supporting parents with greater resources and flexibility in the workplace.

Involving the chief executives of Ikea, NatWest Group and Deloitte, the report highlighted how the nation could benefit from an estimated £45.5bn.

The report followed the launch of Kate’s long-term campaign, Shaping Us, in January 2023, described as the princess’ “life’s work”, and aimed at highlighting the crucial first five years of a child’s life.

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Man who stabbed Glasgow neighbour in parking space row jailed

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Man who stabbed Glasgow neighbour in parking space row jailed

A man who inflicted “life-changing” injuries on a neighbour in a savage knife attack amid a row over a parking space has been jailed for more than seven years.

Stephen McAulay, 35, stabbed James Duncan “multiple times” to the head and body during the incident outside their homes in the Carntyne area of Glasgow on 13 May 2024.

It came after bus driver McAulay sustained a minor facial injury during an earlier confrontation over a parking space on their road, with the attacker later returning armed with a blade.

Judge Lord Young told McAulay: “Whatever the rights and wrongs of that dispute, you would not let the matter rest.”

Crane operator Mr Duncan required emergency surgery to a chest wound, while injuries to his head resulted in “significant” loss of vision to one eye.

The judge described the injuries as “life-changing”, adding: “This appears to be an attack caused more by intoxication and loss of face than anything else.”

McAulay last month pleaded guilty to attempted murder at the High Court in Glasgow.

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He was sentenced to seven-and-a-half years in prison at the High Court in Edinburgh on Tuesday.

Lord Young dismissed McAulay’s claim that he had taken the knife with him in “self-defence”.

The judge said: “You went looking for your victim to continue the argument, and you took a knife with you that you were prepared to use.”

Lord Young highlighted Mr Duncan’s victim impact statement, noting: “He will struggle to return to work. These were truly life-changing injuries that you have inflicted.”

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Earlier, defence solicitor Ross Yuill described his client’s decision to “arm himself with a knife” and confront his neighbour as “inexplicable”.

The lawyer said McAulay has now had his first experience of custody which he found challenging.

He added: “The consequence for him will be a period of custody but also he will miss the birth of his child.”

Mr Yuill said McAulay was “sorry” for the incident and he “wishes again to offer his apologies to the complainer having had significant time to reflect on his actions”.

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