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{{Use dmy dates|date=October 2022}}
{{Infobox Government Budget|year=|title=November 2022 United Kingdom autumn statement|bill_link=|bill=|image=Royal Coat of Arms of the United Kingdom (HM Government) (2022).svg|imagesize=200px|caption=|date_submitted=|submitter=|submitted_to=|presented=17 November 2022|passed=|parliament=[[List of MPs elected in the 2019 United Kingdom general election|58th]]|party=[[Second Johnson ministry|Conservative Party]]|minister=|treasurer=|chancellor=[[Jeremy Hunt]]|Total_Revenue=|Total_Expenditures=|spending=|tax_cut=|debt_payment=|surplus=|deficit=|debt=|gdp=|url=|previous_budget=September 2022 United Kingdom mini-budget|previous_year=September 2022 mini-budget|next_budget=2023 United Kingdom budget|next_year=2023|country=United Kingdom}}

The '''November 2022 United Kingdom autumn statement''' was delivered to the [[House of Commons of the United Kingdom|House of Commons]] on 17 November 2022 by [[Chancellor of the Exchequer]] [[Jeremy Hunt]], after being delayed by three weeks from its original scheduled date of 31 October.<ref>{{Cite news |date=2022-10-26 |title=Rishi Sunak: What will the new PM and the Autumn Statement mean for my money? |language=en-GB |work=BBC News |url=https://www.bbc.com/news/business-63387955 |access-date=2022-10-26}}</ref> The budget addressed the ongoing [[2021–present United Kingdom cost of living crisis|cost of living crisis]],<ref>{{Cite web |last=Kemp |first=Ellie |date=2022-10-26 |title=Fiscal statement delayed until November, Downing Street confirms |url=https://www.manchestereveningnews.co.uk/news/uk-news/fiscal-statement-delayed-until-november-25358112 |access-date=2022-10-26 |website=Manchester Evening News |language=en}}</ref> and saw the announcement of a five-year package of tax increases and spending cuts designed to steer the UK through recession. An economic forecast published on the same day by the [[Office for Budget Responsibility]] (OBR) stated the UK had entered a recession after experiencing two quarters of a shrinking economy, and predicted the UK's economy would shrink during 2023. A reduction in households' disposable income was also forecast.

In his statement, Hunt committed to maintaining scheduled public spending plans until 2025, but said that spending would slow after then. He also lowered the threshold at which earners become eligible to pay the top rate of [[Income tax in the United Kingdom|income tax]], and announced an increase in the National Minimum Wage, as well as increases for pensions and benefits in line with inflation. The Energy Price Guarantee was extended to April 2023, but raised from £2,500 to £3,000. [[Shadow Chancellor of the Exchequer|Shadow Chancellor]] [[Rachel Reeves]] described the measures as "an invoice for the economic carnage" caused by the government of [[Liz Truss]].

==Background==
{{main|Premiership of Liz Truss|September 2022 United Kingdom mini-budget|October 2022 United Kingdom government crisis|October 2022 Conservative Party leadership election}}
The autumn statement was delivered by Chancellor [[Jeremy Hunt]] in the aftermath of the mini-budget set out by his predecessor, [[Kwasi Kwarteng]], who served as Chancellor in [[Liz Truss]]'s brief government. That statement, outlined in September 2022 by Kwarteng, had been a programme of [[Supply-side economics|low taxation and high spending]] worth £45bn which it was hoped would promote economic growth, but had instead it led to economic turmoil, a weaker [[Pound sterling|pound]] and financial intervention in the UK's [[bond markets]] by the [[Bank of England]] to prevent them from collapsing. With a budget deficit of £30bn–£40bn, the markets were concerned as to how this debt would be paid for. Truss and Kwarteng subsequently conceded to failing to prepare the ground for the mini-budget, but argued it had been impacted negatively by global events. After Hunt replaced Kwarteng as Chancellor in October he reversed the majority of the mini-budget's measures in an emergency statement to the [[House of Commons (United Kingdom)|House of Commons]]. A further statement providing a medium term fiscal plan had been scheduled for 31 October by Kwarteng, and an accompanying forecast from the [[Office for Budget Responsibility]] was due to be published on the same day, but after Hunt was retained as Chancellor by Truss's successor, [[Rishi Sunak]], he deferred the statement until 17 November, announcing at the same time that its scope would be expanded into a [[Spring Statement|full autumn statement]] that could outline longer term plans. By then, the markets had stabilised, and official projections suggested the interest on the government's debt could be up to £10bn lower than previously thought. Hunt argued that deferring the date would allow the statement to be based on "accurate economic forecasts".<ref>{{Cite web|url=https://news.sky.com/story/jeremy-hunt-delays-economic-statement-due-on-halloween-to-17-november-12730529|title=Jeremy Hunt delays Halloween economic statement|website=Sky News|accessdate=28 October 2022}}</ref><ref>{{cite news|first=George |last=Parker |first2=Delphine |last2=Strauss |first3=Chris |last3=Giles |first4=Tommy |last4=Stubbington |url=https://www.ft.com/content/305fe7c4-69d3-4b9c-b484-96bd4a7920da |title=Hunt seeks breathing space with new date for UK Autumn Statement |work=The Financial Times |date=26 October 2022 |accessdate=28 October 2022}}</ref><ref>{{Cite web|url=https://www.bbc.com/news/uk-politics-63399803|title=UK tax and spending plan pushed back by two weeks, says Hunt|date=26 October 2022|accessdate=28 October 2022|website=BBC News}}</ref><ref>{{Cite web|url=https://www.politics.co.uk/news/2022/10/26/governments-financial-statement-delayed-till-17-november/|title=Government’s financial statement delayed till 17 November|date=26 October 2022|website=Politics.co.uk|accessdate=28 October 2022}}</ref>

On 3 November the [[Bank of England]] raised the base rate of interest by 0.75% to 3%, the largest single interest rate rise since 1989, and warned of a recession lasting at least two years.<ref>{{Cite web|url=https://www.theguardian.com/business/2022/nov/03/bank-of-england-interest-rates-higher-uk-economy|title=Bank of England signals interest rates probably won’t go much higher|date=3 November 2022|website=The Guardian|accessdate=4 November 2022}}</ref> On 11 November, figures released by the [[Office for National Statistics]] showed the [[Economy of the United Kingdom|UK economy]] had shrunk by 0.2% between July and September 2022.<ref>{{Cite web|url=https://www.bbc.com/news/uk-63582201|title=Recession looms as UK economy starts to shrink|date=11 November 2022|accessdate=11 November 2022|website=BBC News}}</ref> Speaking to the BBC's [[Laura Kuenssberg]] on 13 November, Hunt said that his statement would include details of further help for people facing high energy bills once the [[2022 United Kingdom Energy Price Guarantee|Energy Price Guarantee]] expires in April 2023, and warned taxes would need to rise: "I've been explicit that taxes are going to go up".<ref>{{Cite web|url=https://www.bbc.com/news/uk-politics-63614124|title=Jeremy Hunt: Everyone will have to pay more tax|date=13 November 2022|accessdate=15 November 2022|website=BBC News}}</ref><ref>{{Cite web|url=https://www.walesonline.co.uk/news/politics/everyone-pay-more-tax-warns-25505122|title='Everyone will have to pay more tax' warns Chancellor Jeremy Hunt|first=Laura|last=Clements|date=13 November 2022|website=WalesOnline|accessdate=15 November 2022}}</ref> On 15 November, it was reported that inflation had reached 11.1% during October, up from 10.1% the previous month, and its highest since 1981.<ref>{{Cite web |title=UK inflation jumps to 11.1% on back of energy and food price rises |url=https://www.theguardian.com/business/2022/nov/16/uk-inflation-rate-energy-price-rises |access-date=16 November 2022 |date=16 November 2022 |work=The Guardian}}</ref> On the same day, and while attending the [[2022 G20 Bali summit|17th G20 Summit]] in Bali, Sunak said the priority would be to reduce inflation, and that decisions taken in the forthcoming autumn statement would be done in a "fair" way that would mean everyone benefitting from reduced levels of debt.<ref>{{Cite web|url=https://www.bbc.com/news/uk-politics-63633657|title=UK's reputation has taken a knock, admits Rishi Sunak|date=15 November 2022|accessdate=15 November 2022|website=BBC News}}</ref>

There was some discussion about the actual size of the UK's debt after it emerged the government had changed the way debt is calculated. On 10 November, the [[Progressive Economy Forum]], a centre-left think tank, questioned the actual size of the "black hole" and whether tax rises and austerity measures would be needed to fill it. The think tank argued that calculating the debt under the previously used method would show a gap of £14bn rather than the generally accepted figure which was estimated at the time to be as high as £50bn. In response, [[HM Treasury]] said that public finances would be assessed independently by the Office for Budgetary Responsibility.<ref>{{Cite web|url=https://www.bbc.com/news/business-63573989|title=Economists question 'black hole' in UK finances|date=10 November 2022|accessdate=18 November 2022|work=www.BBC News}}</ref> The OBR subsequently said there was a £55bn gap in public finances.<ref name="auto3">{{Cite web|url=https://www.bbc.com/news/business-63681941|title=Keir Starmer accepts £55bn 'black hole' calculation|date=18 November 2022|accessdate=18 November 2022|work=BBC News}}</ref>

== The statement ==
[[File:Official portrait of the Chancellor of the Exchequer Jeremy Hunt, 2022 (cropped).jpg|thumb|247x247px|[[Jeremy Hunt]] was appointed Chancellor of the Exchequer after [[Kwasi Kwarteng]] was sacked by [[Liz Truss]] on 14 October 2022. He retained his role as chancellor under [[Rishi Sunak]] following Truss' resignation.]]
The statement, which Hunt described as being made "in the face of unprecedented global headwinds",<ref name="auto4">{{Cite web|url=https://www.theguardian.com/uk-news/2022/nov/17/autumn-statement-jeremy-hunt-confirms-uk-already-in-recession-as-he-unveils-tax-rises-and-spending-curbs|title=Hunt unveils tax rises and spending cuts as OBR says eight years of growth to be wiped out|date=17 November 2022|website=The Guardian|accessdate=19 November 2022}}</ref> set out a five-year programme of tax increases and spending cuts worth £55bn that the Chancellor argued would lead to a "shallower downturn" with fewer jobs lost.<ref>{{Cite web|url=https://www.bbc.com/news/business-63659936|title=UK faces biggest fall in living standards on record|date=17 November 2022|accessdate=17 November 2022|website=BBC News}}</ref> It would see an overall increase in government spending over the coming two years, with a commitment to maintain public spending targets until 2025.<ref>{{Cite web|url=https://news.sky.com/story/autumn-statement-jaw-dropping-change-of-tack-as-jeremy-hunt-announces-more-spending-and-sets-trap-for-next-election-12749626|title=Autumn statement: Jaw-dropping change of tack as Jeremy Hunt announces more spending – and sets trap for next election|website=Sky News|accessdate=17 November 2022}}</ref><ref name="auto"/> Hunt said the programme of measures would help to curb inflation, something that had led to a fall in living standards and "real challenges" for families as a result.<ref>{{Cite web|url=https://www.bbc.com/news/uk-politics-63665271|title=Autumn Statement: Jeremy Hunt warns of challenges as living standards plunge|date=17 November 2022|accessdate=17 November 2022|website=BBC News}}</ref> He said of his predecessor, Kwasi Kwarteng, that he had been "correct" to prioritise growth in the September mini-budget, but added that "unfunded tax cuts are as risky as unfunded spending".<ref name="auto1">{{Cite web|url=https://www.bbc.com/news/uk-politics-63662142|title=Autumn Statement: Hunt has picked pockets of entire country, Labour says|date=17 November 2022|accessdate=17 November 2022|website=BBC News}}</ref>

In its report, published at the same time as the autumn statement, the [[Office for Budget Responsibility]] (OBR) concluded the UK had entered a recession after experiencing two quarters in which the economy had shrunk. While predicting an overall growth of 4.2% for 2022, the OBR forecast the economy would shrink by around 1.4% during 2023. After that, however, it predicted growth for the years 2024–2026, with 1.3% in 2024, 2.6% in 2025, and 2.7% in 2026. The rate of inflation was predicted to be 9.1% in 2022 and 7.4% in 2023. Unemployment was expected to rise from 3.6% to 4.9% by 2024.<ref name="auto">{{Cite web|url=https://www.bbc.com/news/business-63555313|title=Autumn Statement 2022: Key points at-a-glance|date=17 November 2022|accessdate=17 November 2022|website=BBC News}}</ref> The OBR also forecast that disposable income would fall by 7.1% over the next two years, taking it to its lowest level since records began in 1956–57, and reducing incomes to 2013 levels.<ref>{{Cite web|url=https://news.sky.com/story/autumn-statement-chancellor-jeremy-hunt-reduces-higher-rate-of-income-tax-threshold-to-125-140-12749383|title=Autumn statement: Millions to pay more in tax as chancellor cuts top-rate threshold and lays out plan to plug 'black hole'|website=Sky News|accessdate=17 November 2022}}</ref>

===Key points===
* Government to extend the period by which it plans to hit its debt and spending targets from three to five years<ref name="auto"/>
* Scheduled public spending plans to be maintained until 2025, but will grow more slowly after that<ref name="auto"/>
* England's [[National Health Service (England)|NHS]] budget will increase by £3.3bn a year during 2023–24 and 2024–25, and spending on schools by £2.3bn over the same period<ref name="auto"/>
* Defence spending to be maintained at 2% of national income<ref name="auto"/>
* Overseas aid spending to remain at 0.5% until 2028, below the official 0.7% target<ref name="auto"/>
* Devolved governments to receive extra funding over 2023–24 and 2024–25, amounting to an extra £1.5bn for Scotland, £1.2bn for Wales, and £650m for Northern Ireland.<ref>{{Cite web|url=https://www.gov.uk/government/news/chancellor-delivers-plan-for-stability-growth-and-public-services|title=Chancellor delivers plan for stability, growth and public services|website=GOV.UK|accessdate=22 November 2022}}</ref>
* Support worth £13.6bn for businesses over next five years, including help with business rates<ref name="auto"/>
* Two year suspension of import taxes on over 100 goods, including some food products<ref name="auto"/>
* Plans for potential Online Sales Tax scrapped to protect online retailers, who will be impacted more severely than shops by changes to business rates<ref name="auto"/>
* Review announced into how [[Aftermath of the 2016 United Kingdom European Union membership referendum|post-Brexit]] regulation can support emerging technologies (to be led by [[Sir Patrick Vallance]])<ref name="auto"/>
* An increase in the [[National Minimum Wage Act 1998|National Minimum Wage]] from £9.50 to £10.42 an hour for all those aged 23 or over from April 2023<ref name="auto"/>
* A 10.1% rise in [[State Pension (United Kingdom)#|state pension]], means tested benefit and disability benefit payments, increasing them in line with inflation<ref name="auto"/>
* The [[State Pension (United Kingdom)#Pensions Act 2007|triple lock for calculating the basic state pension]] is retained<ref name="auto4"/>
* A change in the threshold for the 45% tax rate, which will be paid on earnings over £125,140 rather than £150,000 (excludes Scotland)<ref name="auto"/>
* Income tax personal allowance and higher rate thresholds frozen for further two years, until April 2028 instead of April 2026<ref name="auto"/>
* Main [[National Insurance]] and [[inheritance tax]] thresholds frozen for further two years, until April 2028 instead of April 2026<ref name="auto"/>
* Reduction in tax-free allowances for dividend and capital gains tax in both 2023 and 2024<ref name="auto"/>
* Local authorities given the power to annually increase [[council tax]] by up to 5% without a local referendum instead of the current 3%<ref name="auto"/>
* Household Energy Price Guarantee extended until April 2024, but threshold raised from £2,500 to £3,000<ref name="auto"/>
* Energy support payments for 2023–24 to be set at £900 for households on means tested benefits, £300 for pensioners and £150 for those claiming disability benefits<ref name="auto"/>
* [[Windfall tax (United Kingdom)|Windfall tax]] on profits of oil and gas companies increased from 25% to 35% and extended until March 2028<ref name="auto"/>
* Introduction of a 45% tax on companies generating electricity, effective from January 2023<ref name="auto"/>
* [[Social care cap|Lifetime cap on social care costs]] in England delayed from October 2023 until October 2025<ref name="auto"/>
* A 7% cap on social housing rent increases in England from April 2023 reduced from 11%<ref name="auto"/>
* [[Electric vehicle|Electric cars, vans and motorcycles]] to pay road taxes from April 2025<ref name="auto"/>
* [[Directly elected mayors in England and Wales|Directly elected mayors]] announced for [[Norfolk]], [[Suffolk]], and [[Cornwall]], as well as a to be confirmed area of North East England<ref name="auto"/>
* The [[Sizewell C]] nuclear power plant will go ahead<ref name="auto2">{{Cite web|url=https://www.theguardian.com/uk-news/2022/nov/17/6bn-insulate-houses-sizewell-c-jeremy-hunt-energy-efficiency-autumn-statement|title=Government plans £6bn to insulate UK’s houses and gives go-ahead for Sizewell C|date=17 November 2022|website=The Guardian|accessdate=17 November 2022}}</ref>
* [[High Speed 2|HS2]], [[Northern Powerhouse Rail]] and [[East West Rail]] will go ahead as planned<ref>{{Cite web|url=https://www.newcivilengineer.com/latest/hs2-northern-powerhouse-rail-and-east-west-rail-to-go-ahead-as-planned-17-11-2022/|title=HS2, Northern Powerhouse Rail and East West Rail to go ahead as planned|first=Rob|last=Horgan|work=New Civil Engineer|date=17 November 2022|accessdate=18 November 2022}}</ref>
* An extra £6bn announced to improve the quality of housing stock<ref name="auto2"/>

== Reaction ==
Responding to the statement, [[Rachel Reeves]], the [[Shadow Chancellor of the Exchequer|Shadow Chancellor]], described Hunt as having "picked the pockets" of the country with "stealth taxes", and called the measures announced by him "an invoice for the economic carnage" caused by the [[Truss ministry|Government of Liz Truss]]. But Hunt said the measures would get the UK through an economic "storm".<ref name="auto1"/> [[Nicola Sturgeon]], the [[First Minister of Scotland]], described the statement as "repeating mistakes of the past" and "a reintroduction of austerity".<ref>{{Cite web|url=https://news.stv.tv/politics/first-minister-nicola-sturgeon-brands-jeremy-hunt-autumn-statement-reintroduction-of-austerity|title=Sturgeon: 'UK Autumn Statement repeating mistakes of the past'|first=James|last=Delaney|work=STV News|date=17 November 2022|accessdate=19 November 2022}}</ref>

Although generally positive, market response to the autumn statement was described by ''[[The Financial Times]]'' as being "muted". William Hobbs, chief investment officer at [[Barclays Wealth]] said that the "grown-up tone and the mostly orthodox thinking" behind the budget "seem to have been well received",<ref name=FT/> while Anna Macdonald, fund manager at Amati Global Investors, saw opportunities for investors: "We still see a lot of pressure and a lack of confidence in domestically exposed equities. But selectively they are looking like very good value now."<ref name=FT/>

The Office for Budget Responsibility stated the UK was in a recession that would cancel eight years of growth and UK households would experience the largest fall in living standards since records began.<ref name=":0">{{cite web|url=https://www.theguardian.com/business/2022/nov/18/uk-workers-will-miss-out-on-pay-rises-worth-15000-over-next-five-years-autumn-statement |title=UK workers ‘will miss out on pay rises worth £15,000 over next five years’ |work=The Guardian |date=18 November 2022 |accessdate=19 November 2022}}</ref> The [[Resolution Foundation]] suggested the autumn statement had increased pressure on "the squeezed middle" of wage earners, and extended the real wage recovery lag to 19 years, meaning that real wages would not return to 2008 levels until 2027, leaving wage earners £292 a week (roughly £15,000 a year) worse off than they would have been.<ref name=":0" /><ref>{{cite web|url=https://www.bbc.co.uk/news/uk-politics-63665271 |title=Autumn Statement: Jeremy Hunt warns of challenges as living standards plunge |publisher=BBC News |date=18 November 2022 |accessdate=19 November 2022}}</ref> ''[[The Financial Times]]'' noted that much of the revenue the Chancellor planned to raise would be through what it described as "stealth taxes" – the freezing of allowances and thresholds – which would push millions of taxpayers into paying higher taxes through rising wages. Tim Stovold, of accountants [[Moore Kingston Smith]], described the statement as "a reasonably soft landing" for very high earners, who had been warned that "those with the broadest shoulders would pay the most" – a situation that had not materialised.<ref name=FT>{{cite news|url=https://www.ft.com/content/9a802f30-bd03-4719-9510-703b7001c071 |title=Autumn Statement: A soft landing for higher earners? |publisher=The Financial Times |date=19 November 2022 |accessdate=19 November 2022}}</ref>

In its analysis of the autumn statement, the [[Institute for Fiscal Studies]] said that the most difficult decisions had been postponed until after 2024, and that the UK was entering a "new era" of high taxation.<ref>{{Cite web|url=https://www.bbc.com/news/business-63675313|title=Higher taxes look to be here to stay, says IFS|date=18 November 2022|accessdate=18 November 2022|work=BBC News}}</ref> [[Laura Kuenssberg]], the BBC's political editor, questioned whether those difficult decisions would ever be made: "Perhaps after all, the cuts pencilled in for just after the next election may never come to pass. Chancellors have found it tempting to push their attempts to balancing the books back and back."<ref>{{Cite web|url=https://www.bbc.com/news/uk-63689718|title=Laura Kuenssberg: How much is the Autumn Statement going to hurt?|date=19 November 2022|accessdate=19 November 2022|work=BBC News}}</ref>

Addressing the £55bn gap in public finances, and following debate about its accuracy, [[Labour Party (UK)|Labour Party]] leader [[Sir Keir Starmer]] said he did not dispute the Office for Budget Responsibility's forecast, and that Labour would seek to "repair the damage" if it were to win the [[Next United Kingdom general election|next general election]].<ref name="auto3"/>

[[Tony Danker]] of the [[Confederation of British Industry]] said Hunt had prioritised stability and the battle against inflation over economic growth in the Autumn Statement. Danker said higher growth was also needed to fund the growing health and social care costs. Danker also stated that nothing in the plan indicates the economy will avoid a further "decade of low productivity and low growth".<ref>{{cite news |last=Thomas |first=Daniel |date=21 November 2022 |title=Jeremy Hunt has no plan for growth, says CBI boss |work=BBC News |url=https://www.bbc.co.uk/news/business-63694717}}</ref>

Responding to criticism of the decision to delay the cap on the amount of money people would have to pay towards their social care, [[Steve Barclay]], the [[Secretary of State for Health and Social Care]], told the 20 November edition of [[BBC One]]'s political programme, ''[[Sunday with Laura Kuenssberg]]'', it had been a "difficult decision" but that delaying its introduction for two years would allow more money to be invested in social care.<ref>{{Cite web|url=https://www.bbc.com/news/uk-politics-63693931|title=Health Secretary Steve Barclay defends delay to social care cap|date=20 November 2022|accessdate=20 November 2022|work=BBC News}}</ref>

== See also ==
* [[Autumn Statement]]

== References ==
{{Reflist}}

{{United Kingdom budget}}
{{Rishi Sunak}}

[[Category:Rishi Sunak]]
[[Category:Jeremy Hunt]]
[[Category:November 2022 events in the United Kingdom]]
[[Category:United Kingdom budgets|2022 11]]
[[Category:2022 in British politics]]
[[Category:2022 government budgets]]

November 2022 United Kingdom autumn statement - Revision history

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