Deborah Flint, who co-owns Cinderhill Farm in Gloucestershire, says price rises at the moment are "absolutely crippling".

The farm, which produces speciality sausage rolls and pastries from its animals on site, is facing soaring energy prices, with annual bills rising from £6,500 to an estimated £78,000.

The cost of feeding the animals has also risen sharply, fuelled further by the war in Ukraine which pushed up the price of grain.

"We get people telling us the price of pork has gone down, and yet the price of feed has gone up 43%," she says.

"Someone is paying for it and the person that’s paying for it is the farmer, in losses."

Flint says the most important thing to see from the Chancellor today is stability.

She adds:

The chief executive of the Resolution Foundation think tank says he is expecting some "pretty bad economic news" for the Office for Budget Responsibility (OBR) as the autumn statement is announced.

Speaking to Sky News, Torsten Bell says he expects the UK will face a "grim economic outlook", not just in terms of energy bills and high inflation, but also in terms of the economy growing "very slowly, possibly ending this parliament as weak as it began".

He says he expects unemployment will rise, "which is the opposite of what we've been seeing in the recent past".

Bell adds that while tax rises will largely hit middle and higher earners, inflation and the cost of living will hit those on low incomes the hardest.

In 2010, the Conservative and Liberal Democrat coalition government embarked on a programme of deep spending cuts and tax increases.

It was aimed at reducing the country's massive deficit - where it was spending much more money than it was raising in taxes - after it bailed out banks during the 2008 financial crisis.

As a result, many departments still have less spending power now than they had before 2010.

The government's priorities meant that health, pensions and, until recently, overseas aid had more money, while spending on defence, education and public order fell.

Government spending as a whole is below the level it was in 2009-10 as a proportion of the size of the economy.

So, is there room for further cuts?

Nick Eardley
Chief political correspondent

Image source, Reuters

The Government’s key goal today is to restore stability and credibility when it comes to the economy.

You can expect the chancellor to talk about the need to balance the books and fill a fiscal black hole. The Treasury believes it is around £54bn pounds.

Slightly more of it will be filled by cutting spending that raising taxes, the ratio is around 55% to 45%.

But not all of this is popular or accepted by everyone. Some believe the spending cuts will go too far and return the UK to a form of austerity.

Others – among them some Tory MPs – believe the tax rises are a problem and could make a recession longer and deeper.

The Autumn Statement has not been delivered yet, and already it is causing rumblings among MPs - not only on the opposition's side.

Some Tory MPs on the right of the party have expressed concern about the prospect of tax rises.

Former cabinet minister Esther McVey has said putting up taxes is the "last thing" a Conservative government should be doing. She warned yesterday that she would not support tax rises unless the "unnecessary vanity project" of HS2 was scrapped.

Simon Clarke, who was in Liz Truss's cabinet, warned Hunt not to "throw the baby out with the bathwater and overcorrect" by imposing too many tax hikes.

And former work and pensions secretary Stephen Crabb said he feared spending cuts could lead to "real risks to the quality of public services".

Meanwhile, over on Labour's side, shadow chancellor Rachel Reeves said the UK needed "fairer choices for working people and a proper plan for growth". "Britain has so much potential but we are falling behind on the global stage, while mortgages, food and energy costs all go up and up," she said.

Reeves will deliver a response to Hunt's statement after the chancellor announces it.

Naomi Rainey
Wake Up to Money

It’s been an early start for 5 Live's Wake Up to Money at Cinderhill Farm in Gloucestershire. We've been chatting to the kitchen team, who produce handmade sausage rolls sold to suppliers across Britain, about the chancellor's upcoming statement.

Kirsty says rising costs have impacted how much she’s able to save for her own place. "I’m still living with my mum and dad, and it has affected things. Things are costing more and I’m trying to help them out with bills as well."

Head chef Michael says he would like to see tax cuts – both to income tax and VAT. "It would affect everything. They promised the income tax cut and then they’ve taken it away."

Funding for training is important for Toby: "I’m an apprentice, so I want the government to keep funding that."

But on the soaring cost of living, Tom adds: "I’m not a very political person – I just want to be able to afford to live."

Paul Johnson, director of the Institute for Fiscal Studies, told the BBC that the Chancellor will want to provide reassurance after the turmoil that followed the mini budget in October.

Interest rates rose on government debt and there was concern in foreign markets, he said.

Johnson added: "What the Chancellor is really going to be aiming to do is to provide reassurance there and the way he's going to try and provide reassurance is to say, 'look, I've got this target, which is to make sure that debt isn't ever rising and this is my plan for getting to that target'."

Dharshini David
Economics Correspondent

The Autumn Statement will be a drive to boost the government’s credibility with financial markets, those bond investors it borrows from to help fund spending. By demonstrating a plan to reduce future debt - through higher taxes and squeezing spending - Jeremy Hunt hopes to persuade them to keep borrowing costs low.

But that credibility has a price. The markets wants action now rather than promises. However, taking money out of the economy now risks making a recession even more painful.

Economists say, pound for pound, tax rises are less damaging to growth than trimming spending.

So some bet he’ll save the squeeze on spending for a few years time, after 2025 - but tap up taxpayers in the meantime, by, for example, not increasing the point at which we pay higher rates of income tax in line with pay rises.

However he squares it, we’ll feel the pinch. Today’s measures underscore that it may be a few years before our living standards, our fortunes, are fully restored.

Image source, Reuters

Mohamed El-Erian, chief economic adviser at Allianz, says the chancellor has to strike the right balance to reassure the markets and help the economy grow.

He's been telling BBC Radio 4's Today programme, that the markets are looking for confirmation that the UK is restoring its economic reputation, putting government finances on a sound footing and promoting economic growth.

"It is going to be tricky, striking the right balance because there are so many economic and political judgments here," Dr El-Erian says.

Large tax rises and spending cuts could be seen as "excessive austerity", he adds, while measures to boost economic growth are absolutely critical.

"The answer to all the issues that the UK faces today from inflatio... to a damaged economic reputation, is high, sustained, inclusive growth," Dr El-Erian says.

Nick Eardley
Chief political correspondent

We already know a lot of what is coming today.

The government wants to avoid what happened a few weeks ago with the mini budget - where the markets were spooked.

So there has been a lot of what is called pitch rolling; preparing the ground for bad news.

There’s going to be a lot to chew over later. But there are a few things I think will be key.

• Freezing thresholds means millions will be paying more tax on their incomes

• Millions of households will be paying more for energy as support is scaled back from April
• There will be targeted support with the cost of living, focused on those on low incomes and pensioners
• There will be spending squeezes in government departments. Health will be protected though - and will see rises in real terms (ie when accounting for inflation
• Pensions and benefits will be increased in line with inflation (so 10%)

Dharshini David
Economics Correspondent

From roads to pensions, teachers’ salaries to interest payments on debt, the government will spend over £1 trillion this year, equal to over £40,000 per household.

But the Chancellor has indicated he’s looking to save by raiding future plans.

The cash departments get could rise annually - but by less than previously planned, and crucially by less than inflation, their costs.

As it is the higher-than-expected inflation over the last year has made it harder for some services, already playing post-pandemic catch-up, to make ends meet. Departments may need an extra £20bn by 2024, just to meet existing plans. They’re unlikely to get it.

And beyond 2024, economists suggest the government may, say, curb annual increases in budget to 2% rather than the planned 3.7%, saving £23bn.

But with a fifth of government spending going on public sector wages, that may mean curbing pay rises.

And while the Chancellor will pledge to “prioritise” public services, in reality, they could take a further hit.

Image source, HM Treasury

When Chancellor Jeremy Hunt delivers his Autumn Statement at 11.30 this morning he is expected to pledge to face into the economic "storm" and confirm widespread spending cuts and tax rises.

Here's some of the announcements he's due to make:

• Around £30bn in spending cuts, totalling around 55% of the measures
• £24bn in tax rises, equating to 45% of the measures
• The threshold when the highest earners start paying the top rate of tax will be lowered to £125,000 from £150,000
• The health budget will be protected and increase in real terms - even when price rises are taken into account
• Support for energy bills is expected to remain in place - but become less generous from April 2023
• The energy industry will be hit with a significantly expanded windfall tax to help pay for the support
• An increased National Living Wage from the current level of £9.50 an hour for over-23s
• The BBC also understands the state pension and benefits will rise with inflation - although this has not been officially confirmed

Read more here.

Image source, .

The economy was in a precarious state when Liz Truss became PM in September.

The government borrowed huge amounts during the coronavirus pandemic, to support the NHS, businesses and individuals.

Then prices started increasing sharply, partly driven by problems with supply chains in the wake of pandemic restrictions, and then by Russia’s invasion of Ukraine, which pushed up energy prices as Western countries shunned Russian oil and gas.

The cost of living is now rising at its fastest rate in 41 years.

Truss’s solution was to help with energy bills and also to boost economic growth, which she wanted to do by cutting taxes - lots of them. But she didn’t say how she would fund her plans, and didn’t release an independent economic forecast alongside them.

The government borrows from financial markets. Put very simply, investors need to be confident the government’s sums add up in order to keep lending to it. Investors lost confidence, the value of the pound slid downwards, the interest charged on government borrowing soared, and the Bank of England had to intervene. Interest rate rises followed, increasing mortgage costs for millions.

It’s complicated - but our simple guide to why the mini-budget was scrapped explains what happened.

Chris Mason
Political editor

Morning from Stansted Airport in Essex.

The Prime Minister’s plane from the other side of the world has just landed after a 17-hour shlep from the G20 Summit in Bali in Indonesia.

It’s fair to say none of us are rivalling daisies in the freshness stakes.

Today is likely to be a defining moment for the Prime Minister - as he maps out the contours of his governing strategy.

Rishi Sunak spoke to the Chancellor every day while he was away, despite the time difference, and his back to back appointments with world leaders.

"We will face into the storm," Jeremy Hunt will tell the Commons later.

Not exactly the "let sunshine win the day" optimism of David Cameron all those years ago.

The brutal truth is that what sounds like good news to the financial markets - that the government is economically credible - will sound like bad news for millions of households.

Bad news is rarely politically popular and Conservative MPs in particular are no fans of tax rises.

But after the near death experience for the Tories in recent months they are - in the most part - likely to swallow it, and hope that being seen as competent, if they are, is the start of repairing their reputation and opinion poll ratings.

Helen Catt
Political correspondent

What Jeremy Hunt sets out later is going to be a stark contrast to the "new era" promised by Kwasi Kwarteng just eight weeks ago. Taxes will go up; spending will be cut.

The aim is to reassure the markets that he can balance the books and to start to bring down the high rate of inflation, which the chancellor will call "the enemy of stability".

He is expected to blame rising prices for higher mortgage rates, "industrial unrest" and for cutting funding for public services.

Hunt is doing this with a recession looming and in the knowledge that there are concerns on his own backbenches - so he will also promise to be "compassionate" and "fair".

Ministers have been preparing the ground for weeks; the chancellor is likely to have headed off some big potential flashpoints - albeit not cheaply - with the expected increases to pensions and benefits, and an expectation that the health budget will be protected.

A decision to defer some of the pain to later years - and so beyond the next election - is also likely to pose a challenge for Labour.

Image source, Reuters

We don’t know exactly what the chancellor will say, but the BBC has been told Jeremy Hunt is set to announce around £30bn in spending cuts and £24bn in tax rises.

These could include:

• Income tax: There has been speculation that the government could raise money through income tax changes. For example, it could decide to freeze the amount people can earn before they have to pay a higher rate of tax
• Benefits and pensions: It’s likely we’ll find out whether they will rise in line with inflation
• Energy prices: The chancellor will set out details about further help for those struggling with bills. However, he has warned there will be limits on help. The current energy price guarantee ends on 1 April
• Windfall tax: The government may decide to raise money by increasing taxes on the profits of energy companies
• Social care: Hunt may also postpone the introduction of a cap on social care costs in England. The cap is due to come into effect in October 2023, and means people would not pay more than £86,000 towards care during their lifetime
• Spending cuts: The government is expected to announce billions of pounds worth of cuts to public spending. This could affect services including the NHS, schools and the police

Read more here.

Let’s rewind a moment. In July, Boris Johnson resigned. The leadership contest to replace him took all summer, meanwhile a crisis was brewing over soaring energy prices, largely driven by the war in Ukraine.

Liz Truss became prime minister in September, and her chancellor, Kwasi Kwarteng, quickly unveiled an emergency mini-budget, including help with energy bills for households and businesses.

But it wasn’t clear how the government was going to pay for its plans, which included a raft of tax cuts promised in order to boost economic growth.

This triggered turmoil on financial markets, and the value of the pound plummeted.

Three weeks after the mini-budget, Truss sacked Kwarteng, and replaced him with Jeremy Hunt, who ditched most of her plans. He also promised he would give a detailed statement on the economy.

Then Truss resigned, and Rishi Sunak was selected to replace her and Hunt stayed on as chancellor.

Hunt delayed unveiling his plan, and decided it would be a full Autumn Statement.

And now we’re finally going to hear it.

Image source, Getty Images

The government is set to announce tens of billions of pounds worth of spending cuts and tax rises, which will affect the take-home pay and household budgets of millions of people, as well as money for key public services.

Autumn Statements take place annually, between yearly Budgets (which happen in the spring). But this one is a bigger deal than usual.

When Rishi Sunak became prime minister, he said the UK faced a “profound economic crisis”. This will be the moment where we learn exactly how his government is going to tackle the crisis.

We’re expecting Chancellor Jeremy Hunt to outline what’s going to happen to some of the things that shape our daily lives, such as taxes, benefits, pensions and help with energy bills.

Hunt has said his priorities are economic stability and restoring confidence. It comes in the wake of his predecessor Kwasi Kwarteng’s disastrous so-called mini-budget. That caused market turmoil and led to the resignations of both Kwarteng and former PM Liz Truss.

Read more here.

Good morning. It’s a big day for the UK economy - and for your finances.

The chancellor will be setting out his Autumn Statement, the government‘s plan to stabilise the economy and bring the cost of living down.

Jeremy Hunt has already said it will mean everyone paying more tax, as well as spending cuts for government departments.

We’ll find out what’s going to happen to support for energy bills once the current scheme ends in April, and we’re also likely to learn whether benefits and pensions will go up in line with rising prices.

Hunt, who will be speaking at in the Commons at 11:30 GMT, has said he faces decisions of "eye-watering difficulty”.

The cost of living is increasing at its fastest rate in 41 years, the Bank of England is predicting a long recession, and by some estimates the government has a £55bn hole in its finances to fill.

Stay with us as we bring you what he says - and analyse what it means for all of us.