Autumn Statement 2023: Key announcements from chancellor at a glance
Here are the main announcements from Chancellor Jeremy Hunt’s autumn statement to MPs:
The Office for Budget Responsibility (OBR) predicts an average inflation rate of 2.8% by the end of next year and 2% by 2025.
The OBR sees “overall” UK growth in 2023 of 0.6%. Economic growth of 0.7% is expected in 2024, doubling to 1.4% in 2025.
The independent forecaster expects debt will increase as a percentage of gross domestic product (GDP), the measure of everything produced in the economy.
Borrowing will be 91.6% of GDP next year then 92.7% in the 2024 to 2025 financial year.
The minimum wage – which the government sometimes refers to as the national living wage – will rise to £11.44 per hour from April.
That’s an increase of £1.02 from the current rate of £10.42.
This rate will now apply to Britons over 21, bringing the eligible age down from 23. For anyone under 21, the minimum wage is lower – but this is also increasing, as is the lowest legal pay for apprentices.
Those aged 18 to 20 will get at least £8.60 an hour from April, which is an increase of £1.11. For those 16 and 17, and apprentices, the minimum pay will be £6.40 – a rise of £1.12 on last year.
Benefits will increase by 6.7%, the September rate of inflation, as is customary, with the increase coming into effect in April.
The chancellor announced he will increase the local housing allowance rate to the 30th percentile of local market rents, which he says will give 1.6 million households an average of £800 support next year.
Mr Hunt reaffirmed government plans to remove benefits and step up monitoring of welfare recipients in an effort to bring more people into work.
Jobseekers will have benefits such as free medicines and legal aid removed if they’re found not to be looking for work under the Back to Work Plan which aims to bring 1.1 million people back into work.
The headline rates of national insurance for employees are being cut by 2 percentage points, impacting about 27 million workers.
Employees earning more than £12,570 a year currently pay 12% national insurance on pay up to £50,270. That will fall to 10%.
The cut will be in effect from 6 January.
For the self-employed, the chancellor said he is making reforms to the way national insurance is paid to save around 2 million people an average of £350 per year.
He said he is abolishing Class 2 national insurance – which he says saves £192 a year – for the self-employed.
Meanwhile, Class 4 national insurance will be cut from 9% to 8% on earnings between £12,570 and £50,270.
State pension payments are to rise by 8.5% to £221.20 a week, worth almost an extra £900 a year. The triple lock will be “honoured in full”.
Work to establish a pension pot for life scheme will be begin, giving workers the option to nominate the fund their employer pays into, which can follow them as they move throughout their working life.
A further £500m will be invested over the next two years to fund further “innovation centres to help make us an AI powerhouse”, Mr Hunt said.
Moreover, a “new, simplified” tax relief for research and development will combine the existing R&D Expenditure Credit and SME schemes.
Through that merged scheme, Mr Hunt said he will also cut the rate at which loss-making companies are taxed from 25% to 19%.
The full expensing scheme – currently due to expire in 2026 – will be made permanent.
This allows firms to write off the entire cost of spending on new machinery and equipment, while also saving 25p from every pound spent on other types of investment.
The 75% discount on business rates – the tax paid on non-domestic properties – of up to £110,000 for firms in retail, hospitality and leisure will be extended for another year.
Mr Hunt claims this will save the average independent pub more than £12,800 next year.
All alcohol duty will be frozen until August. That means no increase in duty on beer, cider, wine or spirits.
Mr Hunt pledged to provide £7m to tackle antisemitism in schools and universities. To be repeated is a £3m uplift to Jewish organisation Community Security Trust.
In an attempt to cut the time it takes for planning applications to be granted for businesses, the chancellor said he will allow local authorities to recover the full costs of major business planning applications if they meet guaranteed faster timelines.
But if they fail, businesses will be refunded in full and have their planning application processed free of charge in what the chancellor described as a “prompt service or your money back” promise.
People living closest to new pylons and electricity substations will receive up to £10,000 off their bills over 10 years.
The government will meet its NATO commitment of spending 2% of gross domestic product (GDP), the measure of everything produced in the economy, on defence.
The chancellor also said he will also extend national insurance relief for employers of eligible veterans for another year. This will provide £10m to support the Veterans’ Places, Pathways and People programme, he added.
Freeports and investment zones will be given 10 years of “financial incentives”, rather than five as currently planned.
There will also be a further three investment zones, Mr Hunt said, in the West Midlands, East Midlands and in Greater Manchester, while a second investment zone will also be set up in Wales.
UK
Pictured: Boy killed in Gateshead industrial estate fire – 14 children arrested on suspicion of manslaughter
Tributes have been paid to 14-year-old Layton Carr who died in a fire at an industrial estate.
Eleven boys and three girls, aged between 11 and 14 years, have been arrested on suspicion of manslaughter after the incident in Gateshead on Friday. They remain in police custody.
Police were alerted to a fire at Fairfield industrial park in the Bill Quay area
Firefighters raced to Fairfield industrial park in the Bill Quay area shortly after 8pm, putting out the blaze a short time later.
Police then issued an appeal for a missing boy, Layton Carr, who was believed to be in the area at the time.
In a statement, the force said that “sadly, following searches, a body believed to be that of 14-year-old Layton Carr was located deceased inside the building”.
Layton’s next of kin have been informed and are being supported by specialist officers, police added.
Layton has been described as a ‘beautiful soul’
A fundraising page on GoFundMe has been set up to help Layton’s mother pay for funeral costs.
Organiser Stephanie Simpson said: “The last thing Georgia needs to stress trying to pay for a funeral for her Boy Any donations will help thank you.”
One tribute in a Facebook post read: “Can’t believe I’m writing this my nephew RIP Layton 💔 forever 14 you’ll be a massive miss, thinking of my sister and 2 beautiful nieces right now.”
Another added: “My boy ❤️ my baby cousin, my Layton. Nothing will ever come close to the pain I feel right now. Forever 14. I’ll miss you sausage.”
A third said: “Rest in peace big lad such a beautiful soul taken far to soon my thoughts are with you Gee stay strong girl hear for u always.”
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Detective Chief Inspector Louise Jenkins, of Northumbria Police, also said: “This is an extremely tragic incident where a boy has sadly lost his life.”
She added that the force’s “thoughts are with Layton’s family as they begin to attempt to process the loss of their loved one”.
They are working to establish “the full circumstances surrounding the incident” and officers will be in the area to “offer reassurance to the public”, she added.
A cordon remains in place at the site while police carry out enquiries.
Sky News can reveal that the government has rowed back on a national compensation scheme for victims of child sexual abuse, despite it being promised under the previous Conservative administration.
Warning – this story contains references to sexual and physical abuse
A National Redress Scheme was one of 20 key recommendations made by the Independent Inquiry into Child Sexual Abuse (IICSA), but a Home Office report reveals the government has scrapped it because of the cost.
Marie, who is 71, suffered alleged sexual, physical, and emotional abuse at Greenfield House Convent in St Helens, Merseyside, between 1959 and 1962, and is still fighting for compensation.
Greenfield House Convent, where Marie says she was abused
As soon as she arrived as a six-year-old, Marie says her hair was cut off, her name changed, and she experienced regular beatings from the nuns and students.
She claims a nun instigated the violence, including when Marie was held down so that her legs were “spread-eagled” as she was sexually abused with a coat hanger.
Merseyside Police investigated claims of abuse at the convent, but in 2016, a suspect died before charges could be brought.
Marie has received an apology from the Catholic body that ran the home; she tried to sue them, but her claim was rejected because it was filed too long after the alleged abuse.
Marie, 71, is still fighting for compensation for the abuse she says she suffered as a child
In February, ministers said the law would change for victims of sexual abuse trying to sue institutions for damages, which was a recommendation from the IICSA.
Previously, people had to make a civil claim before they were 21, unless the victim could prove a fair trial could proceed despite the time lapse.
Campaigners argued for the time limit to be removed as, on average, victims wait 26 years to come forward. Changes to the 1980 Limitation Act could lead to more people making claims.
Peter Garsden, President of The Association of Child Abuse Lawyers
Civil cases ‘can take three to five years’
But Peter Garsden, president of the Association of Child Abuse Lawyers, worries that when it comes to historical abuse where the defendant is dead, institutions will still argue that it is impossible to have a fair trial and will fight to have the case thrown out of court.
Mr Garsden said it takes “between three and five years” for a civil case to get to trial.
He warned that claimants “can end up losing if you go through that process. Whereas the Redress Scheme would be quicker, much more straightforward, and much more likely to give justice to the victims”.
Victim awarded £10 compensation
Jimbo, who was a victim of abuse at St Aidan’s children’s home in Cheshire, took his case to the High Court twice and the Court of Appeal three times, but, after 13 years, all he ended up with was £10 for his bus fare to court.
Despite the Lord Justice of Appeal saying he believed that the abuse had occurred, Jimbo lost his claim because of the time limit for child sexual abuse claims to be made.
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Neither Marie nor Jimbo is likely to benefit from the removal of the time limit for personal injury claims, which is why Mr Garsden is calling on the government to implement a National Redress Scheme for victims of sexual abuse, as recommended by the IICSA.
Hundreds of millions paid to victims
The governments in Scotland and Northern Ireland have set up compensation schemes and paid hundreds of millions of pounds to victims.
In 2023, the then Conservative government said a similar scheme would be organised for England and Wales.
But the Home Office admitted in its Tackling Child Sexual Abuse: Progress Update that it “is not currently taking forward any further steps on the IICSA proposal for a separate, national financial redress scheme for all survivors of child sexual abuse”.
“In the current fiscal environment, this recommendation is very difficult to take forward,” it added.
For victims, the scheme was the last chance of compensation for a lifetime blighted by abuse.
“The money is about justice and about all the other people who have had to suffer this abuse,” Marie said.
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