Jeremy Hunt is expected to unveil tax increases and spending cuts in his Autumn Statement today.
The statement outlining Rishi Sunak's Government's economic plans will come just eight weeks after former Chancellor Kwasi Kwarteng's now scrapped mini-budget, which promised to cut some taxes but led to the Pound collapsing against the Dollar and contributed to Liz Truss stepping down as Prime Minister.
Chancellor Mr Hunt is expected to say the "difficult" decision to raise taxes and increase austerity cuts are necessary to tackle rising mortgage rates, energy bills and grocery prices.
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But he faces a backlash from the right wing of his own party, who are voicing anger about increasing taxes, a measure which the Conservative Party is traditionally against.
What time is the Autumn Statement by Chancellor Jeremy Hunt?
Mr Hunt will deliver his statement in the House of Commons on Thursday November 17. He is expected to start at around 11.30am.
A briefing on the economic and fiscal outlook will follow from the Office of Budget Responsibility at 2pm
What will the Chancellor say in the Autumn Statement?
Mr Hunt is expected to lay out tax increases and budget cuts in his statement. He is set to call on the UK to "make sacrifices" as he announces £30bn of spending cuts and £24bn of tax rises over the next five years, Press Association reports.
Mr Hunt will warn that “ high inflation is the enemy of stability” as it sends food and fuel bills soaring, causes businesses to fail and raises unemployment.
“It erodes savings, causes industrial unrest, and cuts funding for public services. It hurts the poorest the most and eats away at the trust upon which a strong society is built,” he is set to say.
“Families across Britain make sacrifices every day to live within their means, and so too must governments because the United Kingdom will always pay its way.
“We are taking a balanced path to stability: tackling the inflation that eats away at a pensioner’s savings and increases the cost of mortgages to families, at the same time supporting the economy to recover. But it depends on taking difficult decisions now.”
Consumer Prices Index inflation rose to 11.1% in October. That's the highest level in seen in 41 years.
How will the Autumn Statement affect you?
Mr Hunt is expected to impose stealth taxes by freezing the rates at which workers begin paying higher rates, drawing more into higher brackets as inflation soars.
These are likely to be accompanied by a raising of the minimum wage, and a lowering of the threshold for when the 45% top rate of income tax comes in from £150,000 to £125,000.
The windfall tax on oil and gas giants is expected to be increased and widened to electricity generators.
He is expected to reduce energy bill support from April 2022 compared to the package unveiled by former Prime Minister Liz Truss.
He will also lay out plans for benefits and pensions, which will reportedly rise with inflation.
Mr Hunt is also expected to allow local authorities to raise council tax.
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