Autumn statement: Chancellor Jeremy Hunt to claim economy is ‘back on track’
Jeremy Hunt will claim the economy is “back on track” in an autumn statement that is expected to prioritise tax cuts and economic growth.
The chancellor is expected to say the government’s plan for the economy is “working” but “the work is not done” as he unveils measures to boost business investment by £20bn a year, cut tax and get more people into work.
Mr Hunt will also set out decisions to grow the economy, reduce debt and return inflation to the Bank of England target of 2% – building further on Mr Sunak’s pledge to halve inflation by the end of the year.
Politics news – latest: Tories ‘running out of time’ – so expect tax cuts
After keeping coy about the prospect of tax cuts, they now appear to be firmly on the table as Mr Hunt vows to “reject big government, high spending and high tax because we know that leads to less growth, not more”.
But Labour’s shadow chancellor Rachel Reeves claimed the Tories were the party of “high tax”, adding: “Nothing the chancellor says or does in his autumn statement can change their appalling record.”
The hint of tax cuts comes after a Sky News poll of polls put the Tories 20 points behind Labour,
This is a worse margin than where Rishi Sunak was at the start of the autumn, when the Conservatives were an average of 18 points behind.
National insurance expected to be cut and national living wage increased
Among the key measures expected to be announced is a possible cut to national insurance contributions.
The government is also hoping to incentivise work by shaking up the welfare system and increasing the national living wage, which will rise from £10.42 to £11.44 from April and will benefit workers aged 21 and over, rather than 23 and over.
It will mean an £1,800 annual pay rise next year for a full-time worker on the living wage, while 18 to 20-year-olds will receive a £1.11 hourly rise to £8.60.
Mr Hunt is expected to say in his statement: “After a global pandemic and energy crisis, we have taken difficult decisions to put our economy back on track.
“We have supported families with rising bills, cut borrowing and halved inflation.
“The economy has grown. Real incomes have risen.
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Ahead of Wednesday’s autumn statement, Sky News’ Ed Conway says the chancellor needs to get the national debt falling.
“Our plan for the British economy is working. But the work is not done.
“Conservatives know that a dynamic economy depends less on the decisions and diktats of ministers than on the energy and enterprise of the British people.”
In total the chancellor is expected to announce 110 different growth measures for businesses, including plans to cut tax, remove planning red tape and speed up access to the national grid.
Meanwhile, there will also be support for entrepreneurs to raise capital policies to unlock foreign direct investment and to boost productivity.
“Taken together we will increase business investment in the UK economy by around £20bn a year over the next decade and get Britain growing,” Mr Hunt will say.
The chancellor is expected to take advantage of headroom in the public finances – created as a result of higher wages and the freeze in income tax thresholds – to reduce taxes while also sticking to his fiscal rules.
They dictate that the government should have debt falling in the fifth year of the economic forecast and that borrowing should be less than 3% of gross domestic product (GDP).
In an interview with Sky News, former home secretary Dame Priti Patel expressed her desire to see tax cuts.
“This government has got the highest tax take in 70 years,” she said.
“I am an absolute advocate of making sure that hard-pressed taxpayers can keep more of their money. And you know, that is through tax cuts.
“And there are ways in which that can be achieved through targeted tax cuts, such as addressing the conundrum of fiscal drag where so many more people get dragged into the higher tax.”
Mr Hunt will also pledge to “reform welfare” in the autumn statement after already confirming a £2.5bn Back to Work plan, which aims to bring 1.1 million people back in the workforce.
Read more:
Autumn statement: Public have ‘duty’ to work, says minister – as benefits shake-up looms
A look at the polls might explain the Tories’ new zeal for tax cuts | Beth Rigby
Measures in the plan including removing benefits such as free prescriptions and legal aid from job seekers who are judged not to be looking for work.
Ms Reeves said: “After 13 years of economic failure under the Conservatives, working people are worse off.
“Prices are still rising in the shops, energy bills are up and mortgage payments are higher after the Conservatives crashed the economy.
“The 25 Tory tax rises since 2019 are the clearest sign of economic failure, with households paying £4,000 more in tax each year than they did in 2010.
“The Conservatives have become the party of high tax because they are the party of low growth. Nothing the chancellor says or does in his autumn statement can change their appalling record.”
The US Office of the Comptroller of the Currency has affirmed that national banks can intermediate cryptocurrency trades as riskless principals without holding the assets on their balance sheets, a move that brings traditional banks a step closer to offering regulated crypto brokerage services.
In an interpretive letter released on Tuesday, the regulator said banks may act as principals in a crypto trade with one customer while simultaneously entering an offsetting trade with another, a structure that mirrors riskless principal activity in traditional markets.
“Several applicants have discussed how conducting riskless principal crypto-asset transactions would benefit their proposed bank’s customers and business, including by offering additional services in a growing market,” notes the document.
According to the OCC, the move would allow customers “to transact crypto-assets through a regulated bank, as compared to non-regulated or less regulated options.”
The letter also reiterates that banks must confirm the legal permissibility of any crypto activity and ensure it aligns with their chartered powers. Institutions are expected to maintain procedures for monitoring operational, compliance and market risks.
“The main risk in riskless principal transactions is counterparty credit risk (in particular, settlement risk),” reads the letter, adding that “managing counterparty credit risk is integral to the business of banking, and banks are experienced in managing this risk.”
The agency’s guidance cites 12 U.S.C. § 24, which permits national banks to conduct riskless principal transactions as part of the “business of banking.” The letter also draws a distinction between crypto assets that qualify as securities, noting that riskless principal transactions involving securities were already clearly permissible under existing law.
The OCC’s interpretive letter — a nonbinding guidance that outlines the agency’s view of which activities national banks may conduct under existing law — was issued a day after the head of the OCC, Jonathan Gould, said crypto firms seeking a federal bank charter should be treated the same as traditional financial institutions.
According to Gould, the banking system has the “capacity to evolve,” and there is “no justification for considering digital assets differently” than traditional banks, which have offered custody services “electronically for decades.”
Related: Trump’s national security strategy is silent on crypto, blockchain
From ‘Choke Point 2.0’ to pro-crypto policy
Under the Biden administration, some industry groups and lawmakers accused US regulators of pursuing an “Operation Choke Point 2.0” approach that increased supervisory pressure on banks and firms interacting with crypto.
Since President Trump took office in January after pledging to support the sector, the federal government has moved in the opposite direction, adopting a more permissive posture toward digital asset activity.
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CryptoUK, a UK-based cryptocurrency trade association, has announced that it will join The Digital Chamber, a US crypto policy advocacy group, potentially marking a significant cross-collaboration on digital asset regulation between the two countries.
In a Tuesday notice, CryptoUK said its team would fall under The Digital Chamber’s umbrella as part of a “unified, cross-border advocacy platform.” Both groups have worked in their respective countries to promote policies favoring the cryptocurrency and blockchain industry, starting with The Digital Chamber in 2014 and CryptoUK in 2018.
“CryptoUK has always aspired to ensure we are driven by policy-led issues, member collaboration, and regulatory engagement,” said Su Carpenter, CryptoUK’s executive director.
The partnership between the two advocacy groups comes as US lawmakers move forward on negotiations to pass a digital asset market structure bill, aiming to establish regulatory clarity for the industry. In the UK, policymakers announced plans to collaborate with their counterparts in the US to explore crypto laws and regulations.
Related: Digital Chamber seeks to guide crypto policy across US states
US-based crypto advocacy organizations, such as The Digital Chamber, have garnered support from former regulators and members of Congress as the Trump White House directs policies toward the industry. Among these groups are the Solana Policy Institute, the Blockchain Association, the Crypto Council for Innovation, and the American Innovation Project.
UK central bank moves forward on stablecoins
On Nov. 10, the Bank of England released a consultation paper to propose a framework for “sterling-denominated systemic stablecoins.” The move by the country’s central bank marked a step toward the UK seeming to play catch-up to the US, where the government passed a law regulating payment stablecoins in July.
Bank of England Deputy Governor Sarah Breeden signaled before the publication of the paper that the central bank’s actions were in response to the US advancing stablecoin policies, and it was “really important” to be synchronized on rules.
Magazine: When privacy and AML laws conflict: Crypto projects’ impossible choice
Kemi Badenoch has refused to say that the Conservatives are intending to win next May’s local elections, despite being repeatedly pushed on the issue.
Asked twice to define success for her party at the elections, the Tory leader merely said that she is “going to be fighting for every vote”.
Speaking to Sky News, she added: “Success is going to be people seeing the Conservative Party as the only party that is competent and credible enough to do the tough stuff that this country needs.”
The comments come as the Conservatives continue to trail in the polls.
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Watch Kemi Badenoch’s interview with Sky News in full
New data released by YouGov this morning has put the Tories in third place behind Reform and Labour, a space they have largely occupied throughout the year. The pollster’s weekly voting intention analysis put Ms Badenoch’s party on 18%, down one percentage point.
YouGov’s weekly voting intention poll has the Tories down one percent on last week, and just three above the Greens. Pic: YouGov
Ms Badenoch gave a speech on welfare costs in London on Tuesday, where she attacked the government’s plans to tackle child poverty. Afterwards, she sat down with Sky News political correspondent Sam Coates.
Asked about the local elections, she said: “There are going to be local elections all over the country, and there’s a conservative message that I want everyone to hear: Our country’s not working properly.
“There are fundamental things that need to change. We need to create jobs. Otherwise, we’re not going to have money for councils.”
She added: “We’ve seen new parties like Reform come in. They’re making a hash of things at council level. We need to make sure that people can see the benefits of voting Conservative.”
Ms Badenoch also refused to score her party’s performance out of 10. Pic: PA
When it was pointed out that she had not defined success as winning the local elections, Ms Badenoch said: “The country is going to decide. We’re going to put out an offer, and we’re going to fight for every vote.”
May will see local council elections, as well as votes for the Senedd in Wales and the Scottish Parliament. They are seen as a crucial moment for the Tory leader – and also for Prime Minister Sir Keir Starmer.
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‘Of course poverty bothers me’
Ms Badenoch also refused to score the party’s performance out of 10, as the year draws to a close, and she marks a little over 12 months as leader.
She told Sky News: “When I look at the historic defeats which Conservatives suffered last year, things are definitely better.”
Read more:
Tory-Reform pact ‘not happening’
Badenoch dismisses Reeves’s ‘mansplaining’ claim
Challenged on the Tories’ position in the polls, Ms Badenoch said: “Of course, we have a mountain to climb.
“We lost more seats [in 2024] than we’ve ever done in our 200-year history. This was always going to be a long road ahead.”
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