Autus Newsletter » Autumn Statement
Autumn Statement 2022
The Chancellor Jeremy Hunt’s Autumn Statement came against the background of a Spring
Statement and a September ‘mini-Budget’ (which has now been substantially reversed). The
overall context is a European recession and high inflation in the wake of the pandemic and the war
in Ukraine.
The Autumn Statement was presented as a difficult and necessary exercise to restore confidence in the UK’s financial position. In October, Mr Hunt spoke of “decisions of eye-watering difficulty” and ever since there has been a regular flow of rumours/leaks about which taxes may increase, how long existing tax allowance freezes could be extended and in which areas spending cuts would fall.
The steady supply of information felt like a pre-Budget kite-flying exercise, so that when the bad news arrived it was at least not a complete surprise. But that did not make the wide range of measures announced on 17 November any less painful.
Just under half of the £55 billion consolidation came from tax and the balance from spending. Mr Hunt described his strategy as a balanced plan for stability, following two broad principles: asking those with more to contribute more; and avoiding tax rises that most damage growth.
Nevertheless, the tax increases announced are substantial, according to Mr Hunt, with tax as a percentage of GDP increasing by 1% over the next five years.
The Chancellor said he aimed to deliver a plan to tackle the cost of living crisis and rebuild the economy with stability, growth and public services as the priorities. Click here to view our Autumn Statement highlights.
The Autumn Statement was presented as a difficult and necessary exercise to restore confidence in the UK’s financial position. In October, Mr Hunt spoke of “decisions of eye-watering difficulty” and ever since there has been a regular flow of rumours/leaks about which taxes may increase, how long existing tax allowance freezes could be extended and in which areas spending cuts would fall.
The steady supply of information felt like a pre-Budget kite-flying exercise, so that when the bad news arrived it was at least not a complete surprise. But that did not make the wide range of measures announced on 17 November any less painful.
Just under half of the £55 billion consolidation came from tax and the balance from spending. Mr Hunt described his strategy as a balanced plan for stability, following two broad principles: asking those with more to contribute more; and avoiding tax rises that most damage growth.
Nevertheless, the tax increases announced are substantial, according to Mr Hunt, with tax as a percentage of GDP increasing by 1% over the next five years.
The Chancellor said he aimed to deliver a plan to tackle the cost of living crisis and rebuild the economy with stability, growth and public services as the priorities. Click here to view our Autumn Statement highlights.
© Copyright 17 November 2022. All rights reserved. This summary has been prepared very rapidly and is for general information only. You are recommended to seek competent professional advice before taking or refraining from taking action on the basis of the contents of this publication. The guide represents our understanding of the law and HM Revenue & Customs practice as at 17 November 2022, which are subject to change.