Autumn Budget 2022: What can we expect?

7 November 2022

After he dismantled most of the Truss-Kwarteng mini-Budget, the new Chancellor of the Exchequer, Jeremy Hunt, will reveal his Autumn Statement on 17 November.

We have a new Prime Minster and a new Cabinet, and whilst Jeremy Hunt served under Liz Truss' brief leadership, he will continue to lead on economic policy under Rishi Sunak.

During Sunak's leadership campaign he made several promises regarding the finances of the country. The question now is whether he will stick to these following the economic chaos of the last few weeks.

It was reported last week that the Chancellor hopes to fill the black hole of £50 billion in public finances through public spending cuts and tax rises.

When is the Autumn Budget?

The first full financial statement from Mr Hunt will take place on November 17.

Originally, the Chancellor was due to flesh out economic policy on October 31, but following Rishi Sunak's appointment as Prime Minister it was inevitable this would be pushed back a few weeks.

The economic policies to be introduced by Hunt in 10 days' time will affect UK households and businesses. It is widely expected that the Autumn Budget will address the rising cost of living and inflation - affecting individuals and businesses alike - and focus also on benefits and pensions.

The Telegraph reported that the Prime Minister and Chancellor will focus on pensions and income tax thresholds to balance the books.

The article quoted a Treasury source as saying: "It is going to be rough. The truth is that everybody will need to contribute more in tax if we are to maintain public services."

During the period when Sunak himself was Chancellor, he promised that benefits would match inflation. Now, with inflation running at over 10%, and following the failed experiment in Trussonomics, it is not known whether Mr Hunt's policies will continue in this vein.

In his inaugural speech as Prime Minister, Mr Sunak made it clear that the Conservative manifesto would be delivered, which includes keeping the pensions triple-lock in place (that pensions would rise in line with inflation).

Pressure will also be on this new government to address the energy-bill price cap, which will end in April 2023. Thereafter, if no action is taken energy bills will rise sharply for UK households.

Mr Hunt may well also offer some clarity on support on lending and mortgage rates as well as planned tax cuts.

We will report back after 17 November on the impact for individuals and businesses.

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