- Support for every household with the cost of energy until April 2024.
- Uprating benefits and pensions in line with inflation, and providing £12 billion extra support for the most vulnerable.
- Public spending protected for the next two years and maintained at the levels set out in 2021, with extra investment for schools and the NHS.
- Restoring economic stability in a fair way with a plan to tackle inflation and boost economic growth key priorities.
The Government have today set how it will restore economic stability, protect key public services, help control inflation, and boost growth in Burnley and Padiham.
Delivering the Autumn Statement the Chancellor announced a raft of measures aimed at curbing double digit inflation whilst protecting key public services such as schools and local NHS provision.
Commenting on the announcement Burnley and Padiham’s MP Antony Higginbotham said:
We're all aware of how Putin's invasion of Ukraine is impacting global food and energy prices, and matched with that we have the aftereffects of the Covid-19 pandemic, including the record borrowing we had to undertake to protect businesses, jobs and livelihoods.
With that as a backdrop, and economic headwinds now turning dramatically with inflation and interest rates rising all across the West, the Government has got to adapt and put us on a clear and sustainable path forward. That's what today was about and it's what the Chancellor has done.
But it’s also vital that support is provided to families right across Burnley and Padiham. I’m particularly pleased to see that the state pension will be increased by just over 10%. And that additional support will be rolled out for the most vulnerable in the form of further Cost of Living Payments, alongside a cap on energy bills until 2024. This is in addition to another £1 billion provided to local Councils in discretionary cost of living support.
Residents will have seen that I’ve been visiting many of our local schools over the last year and so increasing education funding to give young people the skills they need, alongside a boost to our local NHS budget is extremely welcomed too. Although the Labour Party may attack these sensible measures, which I saw myself today in Parliament, I have yet to see a proper plan from them on how they would tackle this unique economic situation.
£12 billion of extra targeted support will be provided next year for those on low incomes, the vulnerable and pensioners, on top of the cost of living payments being provided this year. It means additional payments of £900 for people on means-tested benefits, £300 for pensioners, and £150 for disabled people to help with their energy bills.
This is on top of the uprating of benefits in line with inflation and protecting the pensions Triple Lock.
Every household within the borough will also be supported with higher energy bills following the announcement that the Energy Price Guarantee will be extended until April 2024, with a price cap increase from April 2023 meaning a typical household’s energy bills will be capped at £3,000.
The plan for stabilising the economy and protecting the public finances involves a roughly equal split between tax rises and spending cuts.
Windfall taxes on energy companies are being extended and increased, and instead of raising personal tax rates, the Government is freezing personal tax thresholds for a further two years.
It has announced that the Additional Rate threshold will be reformed, so that a taxpayer who earns more than £150,000 will pay £1,200 more in tax per year. Changes to the dividends allowance and Capital Gains Tax Annual Exemption Amount will mean the greatest burden falling on those who can afford it most.
This will support boosting growth, with £600 billion in capital investment over the next five years protected, along with the Levelling Up Fund, the UK Shared Prosperity Fund, R&D spending, and a £14 billion business rates cuts package to support high street businesses.
Commenting, Chancellor of the Exchequer Jeremy Hunt said:
We are weathering a global economic crisis, but the British people are tough, resourceful and inventive. My focus is on driving down inflation to get us through this.
I have had to make difficult choices, but have done so based on fairness. Increases in taxes and restrictions on public spending are tough, but we’re ensuring those with the broadest shoulders carry the heaviest load.
We’re protecting the most vulnerable with an extensive package of energy support, increases in benefits and the State Pension, and a rise in the National Living Wage.
And we are safeguarding our frontline public services with access to £8 billion for the NHS and Social Care and £2.3 billion for schools next year, while making sure we bring down debt and borrowing.
