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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.

Read more:
Key announcements from the autumn statement

Jaw-dropping change of tack by Jeremy Hunt – analysis

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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Criminal investigation launched into Glastonbury performances of Kneecap and Bob Vylan

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Criminal investigation launched into Glastonbury performances of Kneecap and Bob Vylan

A criminal investigation has been launched into the Glastonbury performances of Kneecap and Bob Vylan.

Police announced the decision on Monday afternoon after reviewing video footage and audio of both sets, which took place on Saturday.

It comes after the BBC said it regretted the decision not to pull the live stream for Bob Vylan’s Glastonbury performance, during which frontman Bobby Vylan shouted anti-IDF (Israel Defence Forces) chants.

The punk-rap duo have also had US visas revoked and been dropped by their US representative, United Talent Agency.

Later on Monday, as the story had made headlines throughout the day, drummer Bobbie Vylan released a video statement on Instagram, saying politicians who have spent time criticising the band should be “utterly ashamed” for giving “room” to this over other issues.

He also addressed what was said on stage, saying: “Regardless of how it was said, calling for an end to the slaughter of innocents is never wrong. To civilians of Israel, understand this anger is not directed at you, and don’t let your government persuade you that a call against an army is a call against the people.”

Moglai Bap and Mo Chara of Kneecap perform at Glastonbury. Pic: Reuters
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Moglai Bap and Mo Chara of Kneecap perform at Glastonbury. Pic: Reuters

In a statement, Avon and Somerset Police said that after reviewing footage of both performances, further enquiries are required and a criminal investigation is now being undertaken.

“A senior detective has been appointed to lead this investigation,” a spokesperson said. “This has been recorded as a public order incident at this time while our enquiries are at an early stage.”

The force said the investigation will be “evidence-led and will closely consider all appropriate legislation, including relating to hate crimes”.

“We have received a large amount of contact in relation to these events from people across the world and recognise the strength of public feeling,” it added. “There is absolutely no place in society for hate.”

What happened?

Bob Vylan performing on the West Holts Stage, during the Glastonbury Festival at Worthy Farm in Somerset. Yui Mok/PA Wire
Image:
Bob Vylan performing on the West Holts Stage, during the Glastonbury Festival at Worthy Farm in Somerset. Yui Mok/PA Wire

During Bob Vylan’s set, the duo performed in front of a screen that showed several messages, including one that said Israel’s actions in Gaza amount to “genocide”.

Bobby Vylan also led chants of “death to the IDF”.

The set was live streamed by the BBC as part of its Glastonbury coverage, but has not been made available on demand.

Politicians including the prime minister have criticised the performance. Glastonbury organiser Emily Eavis said the chants “crossed a line” and that there was no place at the festival for “antisemitism, hate speech or incitement to violence”.

A BBC spokesperson said the broadcaster respected freedom of expression “but stands firmly against incitement to violence”.

They added: “The antisemitic sentiments expressed by Bob Vylan were utterly unacceptable and have no place on our airwaves…

“The team were dealing with a live situation, but with hindsight we should have pulled the stream during the performance. We regret this did not happen.”

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What’s the Glastonbury controversy?

Media watchdog Ofcom said it was in talks with the BBC and that the broadcaster “clearly has questions to answer” over the stream.

Irish-language rap trio Kneecap were on stage afterwards. Before their appearance at the festival, there had been calls for Glastonbury to remove them from the bill – as rapper Liam Og O hAnnaidh (who performs as Mo Chara) is facing a terror charge, accused of displaying a flag in support of the proscribed group Hezbollah at a gig in London last November.

Glastonbury organisers kept them on the line-up, but the BBC chose not to stream their set live. An edited version was later made available on demand.

On stage, the band led chants of “f*** Keir Starmer”.

O hAnnaidh’s bandmate Naoise O Caireallain (Moglai Bap) said they would “start a riot outside the courts” for O hAnnaidh’s next appearance, before clarifying: “No riots, just love and support, and support for Palestine.”

Hundreds of people turned out in protest for his first court appearance earlier this month.

After the police investigation was announced, Culture Secretary Lisa Nandy criticised the “appalling and unacceptable” scenes at Glastonbury and said the government would not tolerate antisemitism.

She said she had called BBC director-general Tim Davie after the broadcast of Bob Vylan’s set to find out why it had aired, and why the feed had not been cut.

“I expect answers to these questions without delay,” she said.

Ms Nandy said she had spoken to members of the Jewish community, including attendees at Glastonbury, who said they were concerned by imagery and slogans and ended up creating their own “safe space”.

Christopher Landau, the US deputy secretary of state, said the band had been banned from the US ahead of a tour later this year due to their “hateful tirade” at the festival.

Bob Vylan were set to perform in Chicago, Brooklyn and Philadelphia in the autumn. They are due to perform at Radar Festival in Manchester on Saturday and Boardmasters, a surfing and music festival in Newquay, Cornwall, in August.

Sharing a statement on Instagram after the Glastonbury set, Bobby Vylan said: “Teaching our children to speak up for the change they want and need is the only way that we make this world a better place.

“As we grow older and our fire starts to possibly dim under the suffocation of adult life and all its responsibilities, it is incredibly important that we encourage and inspire future generations to pick up the torch that was passed to us.”

The war in Gaza, which has continued for more than 18 months, began after Hamas militants launched attacks in Israel on 7 October 2023, killing 1,200 people and taking roughly 250 hostages.

More than 860 Israeli soldiers have been killed since the war began, more than 400 of them during the fighting in Gaza.

Israel’s offensive in Gaza has devastated the enclave and killed around 56,500 people, according to the Hamas-run health ministry, which does not differentiate between civilians and combatants, but says more than half of the dead are women and children.

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Man, 92, found guilty of rape and murder nearly 60 years ago

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Man, 92, found guilty of rape and murder nearly 60 years ago

A 92-year-old man has been found guilty of raping and murdering a woman born 133 years ago – in what’s thought to be the UK’s longest cold case to reach trial.

Ryland Headley was convicted at Bristol Crown Court of killing 75-year-old mother of two, Louisa Dunne, at her home back in June 1967.

Latest DNA technology – as well as matching palm prints taken at the scene more than 57 years ago – led a jury to find Headley guilty on both charges.

Ryland Headley, now aged 92, has been found guilty of rape and murder. Pic Avon and Somerset Police
Image:
Ryland Headley, now aged 92, has been found guilty of rape and murder. Pic Avon and Somerset Police

The front of Louisa Dunne's home. Pic: Avon and Somerset Constabulary
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The front of Louisa Dunne’s home. Pic: Avon and Somerset Constabulary

Detective Inspector Dave Marchant from Avon and Somerset Police said forces across the country are investigating whether Headley could be linked to other unsolved crimes.

“This investigation was a blend of new and old forensic techniques – DNA being the latest and greatest…but we were able to utilise that original investigative material,” he said.

On the morning of 28 June 1967, neighbours noticed that Louisa Dunne, born in 1892, wasn’t standing on her doorstep as usual.

They found her lying dead inside her home in the Easton area of Bristol – bruised, blood coming from one ear, vomit in her mouth and her underwear around her ankles.

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The police investigation at the time found traces of semen on intimate swabs and on the skirt she was wearing, but it was around 20 years before DNA testing.

Louisa Dunne's skirt. Pic: Avon and Somerset Constabulary
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Louisa Dunne’s skirt. Pic: Avon and Somerset Constabulary

Map showing original house-to-house coverage. Pic: Avon and Somerset Constabulary
Image:
Map showing original house-to-house coverage. Pic: Avon and Somerset Constabulary

A palm print was also found on one of the rear windows inside the house.

“The original investigation was, by all accounts, massive,” DI Marchant told Sky News.

“Over 19,000 palm print eliminations were taken from men and boys in the Bristol area and beyond. Over 8,000 house-to-house records were completed and several thousand statements were taken,” he added.

But Headley – in his 30s at the time – lived just outside the ring of houses where palm prints were taken.

A post-mortem examination found she had “extensive abrasions” on her face and that the most likely explanation was that a hand had been pressed against her mouth.

The back of Louisa Dunne's house. Pic: Avon and Somerset Constabulary
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The back of Louisa Dunne’s house. Pic: Avon and Somerset Constabulary

Palmprint images. Pic: Avon and Somerset Constabulary
Image:
Palmprint images. Pic: Avon and Somerset Constabulary

Around 20 crates of evidence were stored in Avon and Somerset Police HQ for nearly six decades alongside other cold cases.

The case was reviewed in 2024, with new DNA testing on the sperm found on the skirt Ms Dunne had been wearing.

Investigating officers were told the results showed a DNA match on the national database that was “a billion times” more likely to belong to Headley than anyone else.

“I had to read that email several times to fully digest the content of it and believe what I was reading. Then it was, okay, game on, let’s get this investigation going,” said DI Marchant.

Headley was arrested at his home in Ipswich in November 2024 – he did not give evidence during the trial.

Headley during his arrest. Pic: Avon and Somerset Constabulary
Image:
Headley during his arrest. Pic: Avon and Somerset Constabulary

Louisa Parker (later Dunne) in 1933. Pic: Avon and Somerset Constabulary
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Louisa Dunne in 1933. Pic: Avon and Somerset Constabulary

The jury heard that forensic experts had matched Headley’s palm print, taken on arrest, to that of the one found on Ms Dunne’s window at the time.

The judge allowed the prosecution to raise the fact that Headley had already spent time in jail for committing two other rapes, around a decade after Ms Dunne’s murder.

Both those cases involved attacks against elderly women in similar circumstances.

Prosecutor Anna Vigars KC told the jury these offences demonstrate to all of us that Headley “has a tendency” to act in exactly the same way that we say that he did back in 1967.

“In other words, to break into people’s homes at night and, in some cases, to target an elderly woman living alone, to have sex with her despite her attempts to fend him off, and to threaten violence,” she said.

Ryland Headley is on trial for the 1967  rape and murder of 75-year-old Louisa Dunne.
Pic: PA
Image:
Ryland Headley is on trial for the 1967 rape and murder of 75-year-old Louisa Dunne. Pic: PA

Speaking before the verdict, Louisa Dunne’s granddaughter recalled the moment police told her of progress in the cold case, nearly six decades on: “She said, ‘this is about your grandmother’, and I said, ‘have they caught him?’ It came out, I never thought I’d say anything like that. Have you caught him? and she said, ‘we have a suspect’.”

She described the impact of the attack on her grandmother and that a conviction would bring relief:

“I accepted it. I accepted that some murders just never get solved. And some people just have to live with that emptiness and that sadness.

“I think it’s appalling, absolutely appalling. The poor woman – it must have been absolutely terrifying. And the reality of a rape, I don’t like thinking about, I don’t think anybody does,” she added.

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The Crown Prosecution Service told Sky News that it was not aware of a cold case with a longer period between the offence and trial.

DI Marchant told Sky News it demonstrates the value of reviewing such cases: “I think this investigation shows you should never give up.

“You should never look at an investigation and say, ‘oh, it’s too old, it happened X number of years ago’ and have an arbitrary cut off point. At the time we re-instigated it in 2024… there was a chance a suspect could still be alive and as it turned out – he was.”

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BBC issues new statement over stream of anti-IDF chant at Glastonbury

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BBC issues new statement over stream of anti-IDF chant at Glastonbury

The BBC has said it regrets not pulling the live stream of Bob Vylan’s “unacceptable” Glastonbury set – as Ofcom said the broadcaster has “questions to answer”.

The corporation has faced mounting criticism over airing the performance on Glastonbury‘s West Holts Stage, during which the rap-punk duo’s frontman Bobby Vylan led chants of: “Free, free Palestine” and: “Death, death to the IDF (Israel Defence Forces)”.

Sir Keir Starmer condemned the remarks as “appalling hate speech”, while festival organiser Emily Eavis said they “crossed a line” – and media watchdog Ofcom has now also released a statement raising concerns.

This morning, a spokesperson for the prime minister did not directly answer when asked if he still had confidence in BBC director-general Tim Davie.

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What is the Glastonbury controversy?

Footage from Bob Vylan’s set on Saturday showed some of the crowd joining in, as the group performed in front of a screen that said Israel’s actions in Gaza amount to “genocide”.

Afterwards, the BBC said there had been a warning on screen about potential “strong and discriminatory language”, but described the comments as “deeply offensive”.

On Monday, a spokesperson released an updated statement, saying the comments were antisemitic and the performance should have been taken off air.

“The BBC respects freedom of expression but stands firmly against incitement to violence,” the statement said. “The antisemitic sentiments expressed by Bob Vylan were utterly unacceptable and have no place on our airwaves. We welcome Glastonbury’s condemnation of the performance.”

Bob Vylan member on stage. Pic: PA
Image:
Pic: PA

A judgement to issue a warning on screen while streaming online was in line with editorial guidelines, the spokesperson added, and the performance has not been made available to view on demand.

“The team were dealing with a live situation but with hindsight we should have pulled the stream during the performance. We regret this did not happen.

“In light of this weekend, we will look at our guidance around live events so we can be sure teams are clear on when it is acceptable to keep output on air.”

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Who are Bob Vylan?
British-Israeli soldier killed while fighting in Gaza
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An Ofcom spokesperson said: “We are very concerned about the live stream of this performance, and the BBC clearly has questions to answer.

“We have been speaking to the BBC over the weekend and we are obtaining further information as a matter of urgency, including what procedures were in place to ensure compliance with its own editorial guidelines.”

In a statement shared on Instagram on Sunday, Bobby Vylan said: “Teaching our children to speak up for the change they want and need is the only way that we make this world a better place.

“As we grow older and our fire starts to possibly dim under the suffocation of adult life and all its responsibilities, it is incredibly important that we encourage and inspire future generations to pick up the torch that was passed to us.”

The latest developments follows severe condemnation from the prime minister, who said there was “no excuse for this kind of appalling hate speech”.

Mo Chara of Kneecap at Glastonbury. Pic: Reuters
Image:
Mo Chara of Kneecap at Glastonbury. Pic: Reuters

Sir Keir also referenced a previous statement that Belfast rap group Kneecap, who were on stage after Bob Vylan, should have been removed from the line-up after one member was charged with a terrorism offence.

“I said that Kneecap should not be given a platform and that goes for any other performers making threats or inciting violence,” he said.

Ms Eavis, whose father Michael co-founded the festival, said in a statement that Bob Vylan had “very much crossed a line”.

She added: “Their chants very much crossed a line and we are urgently reminding everyone involved in the production of the festival that there is no place at Glastonbury for antisemitism, hate speech or incitement to violence.”

The Israeli embassy posted on X in the hours after the set, saying it was “deeply disturbed by the inflammatory and hateful rhetoric”.

It said the slogan used “advocates for the dismantling of the State of Israel”.

In a separate post on X on Sunday, Israel’s foreign ministry published graphic footage following the attack by Hamas on the Nova festival in Israel on 7 October 2023, and the Campaign Against Antisemitism (CAA) said it would be formally complaining to the BBC over its “outrageous decision” to broadcast the performance.

Speaking to Sky News’ Sunday Morning With Trevor Phillips on behalf of the government, Health Secretary Wes Streeting described the chant as “appalling”, especially at a music festival – “when there were Israelis at a similar music festival who were kidnapped, murdered, raped, and in some cases still held captive”.

He added that while “there’s no justification for inciting violence against Israelis… the way in which Israel’s conducting this war has made it extremely difficult for Israel’s allies around the world to stand by and justify”.

Lucy McMullin, who was in the crowd for Bob Vylan, told Sky News: “When there’s children and civilians being murdered and starved, then I think it’s important that people are speaking out on these issues.

“However, inciting more death and violence is not the way to do it.”

Police have said they are reviewing footage of both the Bob Vylan and Kneecap sets to assess whether any criminal offences were committed.

Speaking to Sky News earlier today, women and equalities minister Baroness Jacqui Smith said the comments “clearly” over-stepped the mark.

“I’m surprised that the BBC carried on broadcasting them live when it was obvious what was happening.”

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