Chancellor Jeremy Hunt has been setting out his long-term vision for how to boost the UK's economy after a week of criticism from industry groups
He defended not cutting taxes right now, saying reducing inflation was more important and would help everyone more
The government is under pressure from some of its own MPs to cut taxes sooner
Questioned by journalists, he said that he could not see any "conceivable circumstance" where HS2 would not terminate in Central London
The Sun reported that the new high-speed rail line could instead terminate in West London due to ballooning costs
The speech comes after a week of bad business headlines, including on the decline of the UK car industry
Inflation is still at a 40-year high, leaving many struggling with the increased cost-of-living
We're bringing our live page on Jeremy Hunt's speech to a close now, but you can read more about what he said about the economy here, as well as his comments on HS2 here.
Today's coverage was written by Thomas Mackintosh, Anna Boyd and Jack Burgess. It was edited by Marita Moloney and Andrew Humphrey.
We'll be wrapping up our live coverage shortly, but before we go, here's what Jeremy Hunt said about the UK economy today:
Reality Check
In his speech earlier, the chancellor said: “Total employment is nearly 300,000 people lower than pre-pandemic, with around one fifth of working-age adults economically inactive. Excluding students that amounts to 6.6 million people.”
The Office for National Statistics says that, of people out of work between the ages of 16 and 64, there are:
If you add these together and include “discouraged workers”, who believe there is no work available, and those who consider themselves temporarily ill, you arrive at the figure of 6.6 million mentioned by Jeremy Hunt.
If you include students and people looking for work, who are considered unemployed, there are around nine million working age adults without jobs in the UK.
Faisal Islam
Economics editor
The chancellor’s speech did not contain new policy, but he hopes it shows a new approach.
He thinks that in the sunlight industries the UK can use post-Brexit freedoms to avoid mistakes in regulation in Europe and the US.
The government rejects the idea that the UK needs to catch up with levels of state-directed funding offered, for example, by US President Joe Biden’s Inflation Reduction Act. It is the US playing catch-up with the UK’s green leadership.
That is not the perspective of increasingly vocal industry bodies. With this level of ambition, however, industry will expect not just better regulation, but further help with accessing workers, boosting research at universities, and eventually tax.
Reality Check
In his speech earlier, Jeremy Hunt claimed that "since 2010, the UK has grown faster than France, Japan and Italy. Not at the bottom, but right in the middle of the pack”.
Figures from the international Organisation for Economic Cooperation and Development (OECD) show that from the first quarter of 2010 to the third quarter of 2022 (the most recent figures), the UK grew by 20.7%.
That does put it somewhere in the middle - in third position, behind US and Canada over this time period.
It is worth noting though that the OECD forecasts that the UK economy will contract by more than any other nation in the G7 group of advanced economies next year.
The chancellor also said: “Since the Brexit referendum, we have grown at about the same rate as Germany.”
That is also backed up by this set of figures.
Comparing quarterly growth from the second quarter of 2016 (the time of the referendum) to the third quarter of 2022, the UK and Germany’s economies grew at a similar rate, behind the US, Canada and France.
Image source, .In earlier questions from the BBC's economic editor Faisal Islam, Jeremy Hunt confirmed that he has never paid a penalty to HMRC.
It comes after a week of headlines surrounding the tax affairs of his colleague, Tory Party chairman Nadhim Zahawi.
Hunt would not comment on an investigation by the prime minister's independent ethics adviser into Zahawi's taxes.
But when asked about his own tax affairs, Hunt says he has not paid a HMRC fine.
Image source, Getty ImagesHS2 Ltd has cleared land near to London's Euston mainline station in preparation for the terminus of the scheme
Reacting to the chancellor's comments on HS2, the head of the Federation of Small Businesses (FSB) says it is crucial that the line reaches central London.
Jeremy Hunt pledged that the new high speed rail line will connect to London Euston as originally planned, dismissing a report that the line would end on the outskirts of the city to save money.
"As far as many of our members in the midlands are concerned, HS2 is an enormous boost to the prospects for the economy there," Martin McTague from the FSB told the BBC.
"It's part of the levelling up process and I think if it falls short in west London then that defeats many of the objectives of the line."
More now from Jeremy Hunt's comments on HS2, where he dismissed reports that the project would no longer reach central London due to cost pressures.
The chancellor says he prioritised the scheme in his Autumn Statement, reiterating remarks he made in a speech earlier that he's proud the government ensured there's "shovels on the ground" now.
In the last few moments, Jeremy Hunt has reiterated that HS2 will go all the way to London Euston station as planned.
It follows reports that the high-speed rail line may no longer reach central London.
"I don't see any conceivable circumstance in which that would not end up at Euston," he says.
Image source, Getty ImagesWe've also been getting reaction from the Lib Dems, with the party's Treasury spokeswoman Sarah Olney calling the government's economic record a "shambles".
"This Conservative Party sounds like an unfaithful partner asking for yet another chance - but after crashing the economy and sending mortgages sky-high, why should we trust them again?" she says.
"Jeremy Hunt's speech is cold comfort for families and pensioners facing unbearable price rises.
"This government's economic record is nothing less than a shambles and the British public will see right through this desperate attempt by yet another Conservative chancellor to rewrite history."
Image source, Getty ImagesLabour have been reacting to the Jeremy Hunt's speech, with shadow chancellor Rachel Reeves accusing the Conservative Party of having "no plan" for the future.
She says Labour’s "proper" plan for growth will "make our economy stronger to face up to the challenges".
“Thirteen years of Tory economic failure have left living standards and growth on the floor, crashed our economy, and driven up mortgages and bills," she says.
“The Tories have no plan for now, and no plan for the future. It’s time for a Labour government that will build a better Britain.”
Dharshini David
Economics Correspondent
Hunt also spoke of drawing on Brexit freedoms - cutting EU red tape - to free up our potential.
But those that trade with the EU are facing more formalities, costs, because of Brexit.
And economists point to continued uncertainty over Brexit - for example, the rules surrounding Northern Ireland - as one factor stifling spending by business in skills, equipment, plants. Businesses won’t just invest more and take risks if they’re asked to.
Businesses would agree however, that persuading more people to work would help. But there was little practical detail - yet - on how the chancellor will entice those who have opted for early retirement, or find childcare costs prohibitive.
The chancellor was seeking to dispel criticism that he doesn’t have a long-term strategy. More optimism may help, but we’ll need more than self-belief for a more prosperous future.
Dharshini David
Economics Correspondent
Stop talking Britain down, says the chancellor - but his speech was an admission that we can do better. After all, take away inflation, and many people aren’t better off than a decade ago.
As he says, we’re not short of bright ideas - but the challenge is how to turn “British genius” into higher incomes. His four "E’s" - education, employment, enterprise and everywhere - is a vision few disagree with, but we don’t yet have a blueprint to realise it.
The chancellor has signalled that, with public services under pressure, tax cuts remain a way off.
That's a wrap on Jeremy Hunt's appearance today, where he outlined his plans for the UK's economy.
Turning back briefly to an earlier part of his Q&A session, it's worth noting that the chancellor pointed at cutting inflation as being a priority for him and the government.
"The biggest and quickest tax cut that the prime minister and I can deliver for families up and down the country is to halve inflation," he said.
"That is eating away at people's pay packets, their spending power.
"We recognise that a low tax economy is one of the vital ingredients for dynamism, entrepreneurialism, to encourage people to take risks and that's why we want to do it when the time is right."
On the issue of the HS2 rail line, the chancellor says the government is "absolutely committed to showing that we can deliver big important infrastructure projects" when asked about the project's future.
The Sun reports, external that rising inflation and construction costs means HS2 trains may terminate in the suburbs of west London - instead of central London.
Hunt does not comment on the detail of the report and the possibility that HS2 could be scaled back.
He says: "HS2 was a specific priority for me in the Autumn Statement. I think it is a national embarrassment that the Japanese opened their first high speed line between Tokyo and Osaka in 1974, or two years before I was born.
"And I am incredibly proud that under a Conservative government for the first time we have shovels in the ground for the London to Birmingham part of HS2 and we are absolutely committed to showing that we can deliver big important infrastructure projects...I think they are very important for levelling up."
Below is a reminder of what the HS2 route looks like between Birmingham and London - despite reports this morning that the Euston terminus may not go ahead as planned.
Image source, .The chancellor if next asked if he is being honest about the impact of Brexit on the UK's economy.
Hunt replies that there is some short-term disruption from Brexit but opportunities too.
He admits it has been a big change and had an effect on relationships with our European neighbours but says he believes Brexit can be an "incredible success."
Hunt is asked whether he has ever paid a penalty to HMRC after the tax affairs of Tory Party chairman Nadhim Zahawi dominated headlines this week.
The chancellor says he won't talk about his personal tax affairs but quips that there wouldn't be "anything interesting to write about".
Hunt is next asked about the declinism of Britain, which he said in his speech was "just wrong".
It is put to the chancellor that his speech suggests he doesn't acknowledge evidence of the UK's slow growth in comparison to other countries and is asked why voters would believe he can fix the economy.
The chancellor responds by saying his entire speech is about solving the UK's productivity problems.
He goes on to says his four pillars can address a sustained growth in people's incomes.
The chancellor opened his speech by suggesting ChatGPT - an AI bot - had helped him write his first few lines.
The chancellor jokes that ChatGPT helped him write the opening lines of his speech
Hunt is now answering questions from the press, and he is first asked to reflect on his time as chancellor.
"I have learned a massive amount in three months," Hunt answers.
He notes that the most successful businesses tackle short-term problems but never allow it to deflect from a longer term vision.
He points to the long-term vision he has just outlined, reiterating the aim of becoming the world's next Silicon Valley.