Hunt will try to lay out dividing lines with Labourpublished at 10:10 Greenwich Mean Time 22 November 2023

10:10 GMT 22 November 2023

Chris Mason
Political editor

We are expecting this statement at lunchtime to announce tax cuts but I think Labour will say: "Well hang on a minute - does that really make much difference given of the amount of tax rises there have been?"

I think the dividing line the government will attempt to paint will be in the language Jeremy Hunt will use – he will say the Conservatives reject big government, high spending and high tax.

The historical reality is the last few years have been all three of those things.

But the government will try and claim that this is the dividing line going into the election, pointing at Labour’s "Green Prosperity Plan" as they call it and the costs associated with that.

The Labour challenge, I suspect, will be to try and win the argument around that being in the long-term best interests of the country and businesses.

Kevin Peachey
Cost of living correspondent

As priorities go, the rising cost of renting is top of the list for a significant chunk of the population. Rents have risen sharply as demand has risen and the number of available properties has fallen.

Landlords’ mortgage and tax burden has been a major contributory factor. A fall in interest rates (set by the Bank of England, not the government) could help.

Landlords say the chancellor should reverse some of the tax rules they face. But all eyes will be on the support provided to private renters through the Local Housing Allowance rates - which have been frozen since 2020.

They determine how much people who rent privately get towards the cost through housing benefit or universal credit. The government points out it has also helped with a safety net of discretionary payments.

The chancellor is expected to announce a cut in National Insurance when he gives his Autumn Statement later today.

At this stage, it is not totally clear how much of a reduction Jeremy Hunt will reveal though some reports suggest a 1p cut.

Any cut would affect the pay packets for millions of people, including the self-employed.

At the moment, National Insurance for employees earning between £12,570 and £50,268 is 12% and 2% on profits above that.

In April last year, National Insurance went up to 13.25% to help fund the NHS and social care, but that was reversed in November 2022. The self-employed pay 9%.

If Hunt does cut NI, it will not be cheap. A 1% reduction could cost the Treasury around £5bn.

Kevin Peachey
Cost of living correspondent

If you try to count the number of times Jeremy Hunt mentions a “falling inflation rate” in the Commons later, then you’ll probably run out of fingers and toes.

But this just means prices are rising at a slower rate than before. They are still going up - at more than twice the target level.

For an example of how that affects you, consider the Friday big shop. Food and drink prices are 10% higher than a year ago, and 30% higher than two years ago, the latest official figures show.

You can read more here - and you can also try our calculator to find out your personal inflation rate.

Image source, .

Dharshini David
Chief economics correspondent

Will the chancellor be minded to play Santa rather than Scrooge in the Autumn Statement?

How much cash he has at hand for tax cuts or extra spending depends on how the Treasury’s finances are faring compared to the rules he imposes.

These are rules designed to convince the financial markets that the government is creditworthy and to keep down the interest rates it pays to borrow to help fund plans.

Any wiggle room is referred to "fiscal headroom". Economists estimate that Jeremy Hunt has between £10bn to £25bn of fiscal headroom because the Treasury’s coffers have been swelled by more tax coming in.

But the exact amount depends on the judgement of the independent fiscal forecasters, the Office for Budget Responsibility

Naughty or nice? Even £25bn is not huge headroom by historical standards. And what he chooses to use that for - and when - is a political choice.

Tax cuts for businesses and households are on the agenda - but that ultimately is enabled by the higher taxes they’ve already been paying.

National Insurance cut

Jeremy Hunt is expected to cut National Insurance, a tax paid by millions of workers. By how much? We don't know.

For employees, National Insurance is currently charged at 12% on earnings between £12,571 and £50,271 - and 2% on anything above that. Employers also have to pay NI contributions.

Minimum wage boost

The minimum wage, known officially as the National Living Wage, is to increase by more than a pound to £11.44 per hour from April next year. It is currently £10.42 an hour for workers over 23, but the rate will also apply to 21 and 22-year-olds for the first time.

Business taxes

For businesses, it is understood the chancellor is set to extend the tax break knows as "full expensing" for businesses through to 2028-29.

The "full capital expensing" policy allows companies to deduct spending on investment from profits, meaning they have to pay lower amounts of corporation tax.

The tax break was due to expire in 2026.

Setting your alarm to make sure you don't miss the speech?

We're expecting the chancellor to deliver the Autumn Statement in the House of Commons around 12:30 GMT, straight after Prime Minister's Questions.

You'll be able to watch it live on this page.

Good morning.

In a few hours, Chancellor Jeremy Hunt will update the Commons on the state of the economy, and announce some new tax and spending plans.

Decisions outlined in what’s known as the Autumn Statement - a kind of mini-Budget - affect the take-home pay and household budgets of millions of us.

We’ve got a few hours until we get to the announcements but stick with us as our live reporters and expert economic and political experts guide you through what to expect - and what it might all mean for you.

Image source, HM Treasury