Jeremy Hunt has outlined a package containing "difficult decisions" in an autumn statement he said would put the UK on a "path to stability".
The package represents a significant change from his predecessor Kwasi Kwarteng's unfunded tax cuts in the disastrous mini-budget less than two months, ago which was widely blamed for having spooked the markets.
Here are some of the key points from Chancellor Jeremy Hunt's Autumn Statement:
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The UK is in a recession:
The Office for Budget Responsibility has said that the UK is "now in recession", Mr Hunt said, but he added "overall this year, the economy is still forecast to grow by 4.2%".
Energy bill support:
The energy price guarantee scheme will increase from £2,500 for the average household to £3,000 for 12 months from April, Mr Hunt confirmed.
Cost of living payments:
The Government will introduce additional cost-of-living payments for the "most vulnerable", with £900 for those on benefits, £300 for pensioners and £150 for those on a disability benefit.
National living wage increase:
Mr Hunt has accepted a recommendation to increase the national living wage by 9.7%, making the hourly rate £10.42 from April 2023.
Income Tax freeze and threshold change:
Mr Hunt reduced the threshold at which the top rate of income tax is paid from £150,000 to £125,140, but said he was not raising headline rates of taxation. He said those earning £150,000 or more will pay just over £1,200 more a year.
The income tax personal allowance, main national insurance thresholds and the inheritance tax thresholds will be frozen until April 2028.
Vehicle Excise Duty:
Electric vehicles will no longer be exempt from Vehicle Excise Duty from April 2025 to make the motoring tax system "fairer".
NHS budget increased:
Mr Hunt said he will increase the NHS budget by an extra £3.3 billion in each of the next two years. The NHS will be asked to "join all public services in tackling waste and inefficiency".
Mr Hunt said the NHS would publish an independently-verified plan for the number of doctors, nurses and other professionals needed in five, 10 and 15 years' time. He allocated for adult social care additional grant funding of £1 billion next year and £1.7 billion the year after.
Benefit changes - pensions, Universal Credit and more:
Mr Hunt said he would move back the managed transition of people from employment and support allowance on to Universal Credit to 2028.
Working age and disability benefits will increase in line with inflation, with a rise of 10.1%, costing £11 billion. State pensions will increase in line with inflation in April, as Mr Hunt announced the "biggest ever cash increase in the state pension".
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