Millions of people are already worried about how to make ends meet, and are now facing the added stress of having to make higher mortgage payments, Reeves continues.

The average worker is earning less now than when the Tories came to power and the government "has presided over the biggest wage squeeze in centuries", she says.

"This was a crisis made in Downing Street and it is ordinary working people who are paying the price," she adds.

Ione Wells
Political correspondent

The next election could be as far away as January 2025, but we are already hearing some of the attack lines the opposition will use in that campaign.

Labour's shadow chancellor stresses that people’s economic challenges are down to "this government’s mistakes", not just global factors, and 12 years of Conservative governments.

The challenge Labour faces is pressure to outline how they would balance taxes and public spending to control the economic turmoil we’ve seen over the last few months, and what they’d do differently.

Reeves points out that no other advanced economy is cutting spending or increasing taxes for working people as they head into recession.

She says the government is repeating the mistakes of the last decade.

"We need to break free of this vicious cycle of stagnation with better choices and a proper plan for economic growth," Reeves says.

Britain's problems started before the pandemic, shadow chancellor Rachel Reeves says.

"This is what happens under a decade of Tory management," she adds.

She says the UK is the only G7 country which is poorer than it was before the pandemic.

Out of the 38 most industrialised economies, the IMF is saying the UK will have the slowest growth in the next two years, she says.

"This isn't a game, this is people's lives," Reeves continues, saying it's about their livelihoods and ability to pay mortgages, rent and bills after "years of Conservative stagnation that has left our country so much worse off".

"It's about when the global storm hits, we are uniquely exposed because of the choice the Conservatives have made," she adds.

Shadow chancellor Rachel Reeves says that "all the country got today was an invoice for the economic carnage that this government has created."

She accuses the government of trying to pretend last month's mini-budget, that caused economic turmoil, was nothing to do with them.

"What does the chancellor have to offer today?,"

Reeves says. "More of the same - with working people paying the price for his failure. The Chancellor should have come today to ask for forgiveness, at the very least he could've offered an apology."

Shadow chancellor Rachel Reeves says this government's mistakes means the UK is being held back.

She says at the next election, people will ask themselves if they are "better off with this Conservative government, and the answer is no".

Shadow Chancellor Rachel Reeves is now addressing the Commons.

Here we are at the end of 2022, three prime ministers, four chancellors and four budgets later," she says.

"And where do we find ourselves? In a worse place than we started the year."

Hunt is now nearing the conclusion of his statement.

"There is a global energy, inflation and economic crisis. But the British people are tough, inventive and resourceful... We aren't immune to the headwinds, but with this plan for stability, growth and public services we will face into the storm."

"There may be a recession made in Russia, but there is a recovery made in Britain," Hunt adds.

He finishes by saying he has presented "a balanced plan for stability, a plan for growth and a plan for public services.

"It shows that you don’t need to choose either a strong economy or good public services," he says.

The chancellor has also said that rent increases in the social rented sector will be capped at 7% in the next financial year - a move he says could help about four million families.

"Compared to current plans, that is a saving for the average tenant of £200 next year," he says.

Hunt confirms that pensions - like benefits - will rise in line with September's inflation rate of 10.1%.

He says that as a result the government is sticking to its “triple lock” on the state pension.

That refers to a manifesto pledge that the state pension would rise in line with the highest of: the previous September's inflation figure, the average wage increase, or 2.5%.

The chancellor says means-tested benefits, including Universal Credit, will also rise in line with September’s inflation figure of 10.1% from next April, in-keeping with previous promises by Rishi Sunak when he was chancellor.

"That is an expensive commitment costing £11bn," he says, "but it means 10 million working age families will see a much-needed increase next year.

"On average, a family on Universal Credit will benefit next year by around £600. And to increase the number of households who can benefit from this decision I will also increase the benefit cap with inflation next year."

By law, some disability benefits must rise in line with inflation each year anyway.

The chancellor has confirmed that the National Living Wage will be increased from £9.50 an hour for over-23s to £10.42 from April next year.

This represents an annual pay rise worth over £1,600 to a full time worker, Hunt says.

The National Living Wage goes up every April, boosting the pay of around about two million people. But the new rates are announced months in advance, to allow firms to prepare.

The chancellor announces there will be targeted support with the cost of living for those on low incomes, disability benefits and pensioners.

Additional payments of £900 will be paid to those on means-tested benefits, £300 to pensioner households and £150 to people on disability benefits.

It comes after new official figures showed yesterday that inflation, the rate at which prices rise, hit a 41-year high, largely driven up by energy, food and fuel costs.

Help for energy bills will be extended, but it will be less generous, Hunt confirms.

This means millions of households will see their energy bills go up by hundreds of pounds a year from April.

A household using a typical amount of gas and electricity will pay £3,000 annually, up from £2,500, as the Energy Price Guarantee rises. The scheme will run for 12 months from April.

Without the government’s support, experts have said the figure could have hit £3,700.

Hunt now moves on to talk about innovation, saying that we have a "genius for innovation" and that three of the top 10 global universities are in Britain. "Thanks to Conservative governments, we remain a science superpower," he says to cheers.

Hunt adds that the UK now "needs to be better at turning world class innovation into world class companies... I want to combine our technology and science brilliance with our formidable financial services to turn Britain into Britain into the next Silicon Valley."

He says he has asked the Chief Scientific Adviser Sir Patrick Vallance to lead "new work on how we should change regulation to better support safe and fast introduction of new emerging technologies."

Hunt goes on to confirm that rail projects will go ahead as planned: the Northern Powerhouse rail, the HS2 and the East West Rail.

"Smart countries build on their long-term commitments rather than discard them," he says.

He says there will be over £600bn of investment over the next five years to connect our country and grow our economy.

This will include the new hospitals programme and gigabit broadband rollout, he says.

When looking for cuts, Hunt says capital is sometimes seen as an "easy option".

"But doing so limits not our budgets, but our future", he says, adding that he will not be "cutting a penny" from the UK's capital budgets over the next two years.

Hunt says that there is a need to change our approach to energy. "Over the long term, there is only one way to stop ourselves being at the mercy of international gas prices: energy independence combined with energy efficiency," he says.

Energy independence means the UK would not be able to be "blackmailed" by "Putin or anyone else," Hunt says.

And energy efficiency translates into a reduction of demand and of climate impact.