The chancellor's plans show the UK's government borrowing of recent years is "coming home to roost", says the director of the Institute for Fiscal Studies think tank.

"It all looks a bit grim," comments Paul Johnson, who highlights that the chancellor has accepted a continuation of borrowing - while also hiking taxes and planning spending squeezes after the next election.

Johnson tells BBC Radio 4's Today programme that this is due to the government's need to tackle debt - saying £100bn a year will be spent on debt interest in the medium-term.

Compounding matters is the fact that "there's just much less money around" with the economy growing so slowly, Johnson adds.

Hunt is also asked about the possibility of fuel duty increasing by 23% next spring.

"That is not government policy," he says, adding "we have made no decision on that at all".

He adds this is "just an assumption" that's been made by the Office for Budget Responsibility, an independent forecaster.

Before the BBC Breakfast interview closes, the chancellor is asked whether the UK's economic picture could put off business investment.

He highlights "problems" faced by other major economies around the world, but insists he has a "sensible plan to get us through choppy waters".

Jeremy Hunt denies he's ducked the hardest decisions by deferring spending cuts until after the next election.

"That's not correct," he says - alluding to this morning's newspaper front pages, and the tax rises he's outlined.

At the same time, he says, it is important to not make a recession "worse".

To that end, he points to measures he's unveiled to support families and businesses.

"This is a compassionate government," he insists.

He also quotes the Office for Budget Responsibility, an independent forecaster, as saying that the government's plan will save about 70,000 jobs.

The Chancellor is asked about the Office for Budget Responsibility's (OBR) report that living standards will fall by 7% in the near future.

Talking about the pubs and hospitality sector, Hunt agrees that there are "very difficult times ahead" for many people but argues that the government is giving a 15% reduction in business rates this year, which will climb to 75% next year.

Hunt also says that people who are worried about the cost of energy bills or the weekly shop will be getting support - with extra help for those on lower incomes.

"People will feel like even despite the hardship they can do things like go to the pub. We want people to feel the government is helping them through the recession," Hunt adds, noting that the OBR said that the announcement yesterday will make the recession "lighter".

"There's a plan, we'll get through it, bring inflation down and grow the economy healthily when we get to the other side."

Jeremy Hunt is about to appear on BBC Breakfast to be quizzed about his plans for the economy.

Stay with us as we keep you updated on what he says.

Asked about an increase in fuel duty by 23% in March of next year (predicted by the Office for Budget Responsibility), Reeves says that she's "really worried" about a whole range of measures that are due to kick in - including increases in council tax, income tax and energy prices.

She says the government has made a mistake in choosing not to extend the windfall tax further: "Every pound left on the table on windfall tax is a pound that could've been spent in easing some of these cost of living pressures."

"That is unforgivable," Reeves says.

More now from shadow chancellor Rachel Reeves who tells BBC Breakfast, "we won’t be able to do everything we want as quickly as we want" when asked if Labour would enact the cuts planned by the Conservatives if her party wins power at the next election.

"We don’t know the situation we are going to inherit," Reeves responds.

She urges the government to "urgently" put in place plans for economic growth that would result in a "better outlook".

With an improvement in living standards, "these difficult choices would not be so bad", she adds.

"Fairer choices" could have been made on tax according to shadow chancellor Rachel Reeves, who's been speaking to BBC Breakfast this morning.

"We need a serious plan to grow our economy," she said, criticising the government's decision to cut the taxes on banks and its failure to introduce a non-dom tax status or to tax private equity bonuses.

"If [the government] did some of those things, [it] wouldn't have needed to increase taxes on ordinary people. This government comes time and again for the pockets of the ordinary man and woman rather than for those with the broader shoulders," she added.

We're bringing you more reaction to the chancellor's Autumn Statement today. Jeremy Hunt will also be speaking to the BBC soon and we'll bring you full coverage of what he says.

Before that, let's have another quick look at what his plans mean for you.

• Jeremy Hunt told us to expect to pay more income tax. The thresholds at which you pay different levels of tax will be frozen for two more years until April 2028, meaning any kind of pay rise could drag you into a higher tax bracket
• As for the top level of income tax - from April, this will now be paid on earnings over £125,140, instead of £150,000
• Spending on public services in England will rise more slowly than planned - with some departments facing cuts after the next election
• A mechanism known as the state pensions triple lock will be kept, meaning pensioners will see a 10.1% rise in weekly payments - a figure linked to current inflation levels
• A scheme that helps households with energy bills has been extended for another year beyond April, but will be less generous - with a "typical" bill capped at £3,000 a year instead of £2,500
• There will be additional cost-of-living payments for the "most vulnerable", with £900 for those on benefits, and £300 for pensioners
• The UK minimum wage for people over 23 will increase from £9.50 to £10.42 an hour

Ian Blackford, the leader of the SNP in Westminster, has told the BBC this morning that his first reaction to yesterday's announcements was that it was "really bad news" for people around the country.

Blackford said Hunt was making "political choices to cut public spending" worth £30bn and that the energy cap does not go far enough as people will still be paying over three times more for energy than they were before the crisis.

"I can't help but think that there's been a missed opportunity to make sure the Chancellor was raising appropriate tax for those in the oil and gas industry," Blackford adds.

He says that share buybacks - return of capital to shareholders - on windfall tax would've brought the government £11bn, while taxing those with non-dom status would have been worth £3bn.

"My question is: why haven't you done what you could've done by bringing in these taxes that would've protected the public from the public sector cuts we're going to see?"

"I suspect for a lot of people this is going to be a very harsh winter," Blackford adds.

The Resolution Foundation think tank said the Autumn Statement piled further pressure on "squeezed middle" earners.

In an analysis of the plans, it estimated that personal tax hikes will hit the income of typical households by 3.7%.

In its analysis, external, the Resolution Foundation also says the spending cuts planned out for the second half of the decade reverse the increase in public spending announced by then-chancellor Rishi Sunak in 2021.

The think tank adds a weaker forecast for pay from the Office for Budget Responsibility means "real wages are now not expected to return to their 2008 level until 2027".

Resolution Foundation research director James Smith said: "As an energy importer during an energy price shock, Britain is getting poorer. Deciding how we do so was, to a significant extent, the choice facing the chancellor."

Most of Friday's front pages react to Chancellor Jeremy Hunt's Autumn Statement.

"From bad to worse" is what the Guardian has to say following the announcement of £30bn of spending cuts and £25bn of backdated tax rises. But it adds that the "fresh austerity measures" have been delayed until the next general election.

The Daily Mail says middle earners were "hammered" with "a stealth tax squeeze" in the chancellor's announcement, calling it one of the most punishing budgets in modern history.

And the Financial Times says Hunt has paved the way "for years of pain", as UK households are set for the highest tax burden since World War Two.

Meanwhile, the Daily Express is one of the few papers to offer a positive outlook. "Victory" is its headline, as the paper celebrates the pledge to increase pensions at the same rate of inflation.

You can read the full paper review here.

Image source, Getty Images

Good morning. It's the day after Chancellor Jeremy Hunt outlined his Autumn Statement, in which he announced tax rises and spending cuts worth billions of pounds. These were an attempt to tackle rising prices and restore the UK's credibility with international markets.

The announcements came as the government's forecaster warned that the UK faced its biggest drop in living standards on record, as the surging cost of living ate into people's wages.

In the coming hours, we'll be hearing from a number of key players in Westminster. Hunt himself will be speaking to the BBC shortly.

We'll also hear from Labour's shadow chancellor Rachel Reeves and the SNP's Ian Blackford as the reaction to yesterday's economic statement continues.

Stay with us as we bring you the latest fallout, and analysis on how the new plans will affect you.

Image source, Getty Images

We're pausing our live page coverage now, but if you're just sitting down for the evening and want to get a handle on today's Autumn Statement and what it means for you, here's a few articles that might be of help:

Start here: Our at-a-glance guide to the Autumn Statement is here

Dive deeper: The devil's in the detail - our guide to what it means for you is here

Give it some thought: We have analysis from our chief political correspondent Nick Eardley here, and from our economics editor Faisal Islam, here

Consider the alternatives: Our story on Labour's take on it all is here

That's just a taster of what we have - you can find much much more on our politics and business pages.

That's it for the day, thanks for joining us.

Today's writers were Laura Gozzi, Margaret Davis, Marita Moloney, Alys Davies, Lora Jones, Sam Hancock, James Harness and Emily McGarvey.

The editors were Chris Giles, Nathan Williams and Emma Owen.

If you want to see more debate and discussion of the Autumn Statement, Question Time is live on the BBC iPlayer just now.

This week Fiona Bruce and her panel are in Snape, Aldeburgh - click here to watch.

On the panel are Financial Secretary to the Treasury Victoria Atkins, Shadow Secretary for Work and Pensions Jonathan Ashworth, the SNP's Ian Blackford, Kate Andrews from The Spectator, and writer and broadcaster Sir Trevor Phillips.

Image source, Reuters

Chancellor Jeremy Hunt outlined £55bn of tax rises and spending cuts aimed at mending the nation's finances: Here are the key things to know:

• Help with energy costs has been extended for all households, but at a less generous level, meaning millions will still face higher bills

• Income tax thresholds will be frozen until April 2028, which means millions of people will pay more tax.
• There will be targeted support with the cost of living for those on low incomes, disability benefits and pensioners and pensions - like benefits - will rise in line with September's inflation rate of 10.1%
• The National Living Wage will be increased from £9.50 an hour for over-23s to £10.42 from April next year
• The threshold for when the highest earners start paying the top rate of income tax will be brought down from £150,000 to £125,140

• The government will invest an extra £2.3bn in schools in 2023 and 2024, while the NHS budget will be increased in each of the next two years by £3.3bn

• The chancellor acknowledged the UK is in a recession, citing global factors including the war in Ukraine which has prompted soaring energy and food costs
• In an interview with the BBC he said he'd taken difficult decisions - you can watch a clip of that below
• Labour's Shadow Chancellor Rachel Reeves said Hunt has "picked the pockets" of the entire country with "stealth taxes"
• The Office for Budget Responsibility's forecast predicted the UK economy to shrink by 1.4% next year

Robert Cuffe & David Brown
Visual Journalism Team

The guarantee is a cap on the price of each unit of energy you use. Use more (or less) and you’ll pay more or less.

The chancellor has announced a rise for the average household from £2,500 a year to £3,000.

We haven’t had the full breakdown from the government yet of how they’re spreading the pain between gas and electricity.

But if we assume that they’re hitting each equally, that rise would look like the chart below.

Image source, .

Low users, and about a quarter of households use this much or less, might expect to see an annual bill of about £2,000, up by £300.

Higher users, say a five-bed house, might expect to see an bill of about £4,200, up by about £700.

And the quarter of households that use even more energy than them would see even higher bills.

Image source, PA Media

The chancellor said Scotland would receive £1.5bn over the next two years.

"Scottish families will receive billions of pounds of UK government support, such as inflation-matching increases in benefits and the state pension," he said.

Liz Smith, Scottish Conservative finance spokesperson, said Hunt's measures protected vulnerable people in society.

But First Minister Nicola Sturgeon said Scotland essentially had a flat budget because its value had shrunk by £1.7bn as a result of inflation.

She also accused the UK government of repeating the mistakes of the past by bringing in austerity.

"These plans are likely to worsen the extreme pressures already being faced as a result of inflation and rising interest rates," she said.

Read more on the reaction in Scotland here.

The Welsh government can expect £1.2bn extra over the next two years, according to Chancellor Jeremy Hunt's statement, but Labour ministers are unlikely to say it's enough to cover inflation.

Welsh ministers have wanted to see much larger rises to meet inflationary costs, saying soaring inflation has wiped out a big chunk of their spending power.

"This Autumn Statement heaps further pressure on millions of people already struggling with the cost of living crisis," Wales's First Minister Mark Drakeford said.

Chief Secretary to the Treasury John Glen, however, said the Welsh government was getting a "significant additional sum of money".

He denied that it amounted to a return to austerity, saying it would reduce the size of the recession "and we hope the length of it".

Read more on how the statement has gone down in Wales here.