Recap of the Autumn Statement 2022

Autumn Statement

On Thursday, 17th November, Chancellor of the Exchequer Jeremy Hunt delivered his Autumn Statement in a speech to the House of Commons. His statement comes at a time of significant economic challenge for the UK. A range of factors – including high inflation and steep borrowing costs – have contributed to a considerable gap between the funds the government recieves in revenue and its spending.

In response, Hunt’s proposals aim to prioritise economic stability and ensure that national debt falls as a percentage of gross domestic product (GDP) within five years.

Measures announced

The following measures were outlined during Hunt’s speech:

 Personal Taxes

  • Income and inheritance tax thresholds will be frozen for another two years—until 2028.
  • The dividend allowance will be cut from £2,000 to £1,000 in 2023 and then to £500 from April 2024.
  • The annual exempt amount for capital gains tax will be cut from £12,300 to £6,000 in 2023 and then to £3,000 from April 2024.
  • The threshold for the 45p additional rate of tax will be cut from £150,000 to £125,140.

Business Taxes

  • Windfall tax on major oil and gas producers will be raised to 35% from 25%. Additionally, a new, temporary Energy Generator Levy will be applied to the returns being made by energy generators.
  • The employment allowance will be retained at its new, higher level of £5,000 until March 2026.
  • Business rates multipliers will be frozen in 2023-24; relief for retail, hospitality and leisure sectors will be extended. Furthermore, additional support will be provided for small businesses. These specific measures amount to a £13.6 tax cut for businesses over the next five years.

Health and Education

  • Adult social care will be allocated £2.8 billion in funding over the next two years to help free up hospital beds.
  • The NHS budget will increase by an extra £3.3 billion in each of the next two years.
  • Core schools’ budgets will increase by an extra £2.3 billion per year from 2023-25.

Overall, Hunt confirmed that public spending will continue to grow, albeit more slowly than the growth in the economy.

Cost-of-Living Support

  • The government’s Energy Price Guarantee will increase in April from £2,500 to £3,000.
  • New cost-of-living payments will be introduced: £900 to households on means-tested benefits, £300 to pensioner households and £150 to individuals on disability benefits.
  • The “national living wage” will rise to £10.42 an hour next year beginning in April (a 9.7% increase).
  • Benefits, including Pension Credit, will rise 10.1%, in line with September’s inflation figure.

Impact on the Economy

The government’s Autumn Statement has been independently verified by The Office for Budget Responsibility (OBR), which predicts that inflation will decline to 7.4% by the middle of next year in response to the measures. However, the OBR has cautioned that the UK is already technically in a recession, and the economy is expected to contract 1.4% in 2023.


The proposals set out in the government’s Autumn Statement aim to tackle the cost-of-living crisis and rebuild the economy, focusing on three main pillars: stability, growth and public services. According to Hunt, the plan should “lead to a shallower downturn; lower energy bills; higher long-term growth; and a stronger NHS and education system.”

However, the newly announced measures will have implications for both individuals and businesses. As such, it’s wise to fully understand any potential ramifications by reading the Autumn Statement in full on the government’s website.

For further guidance and cost-cutting strategies, contact us today.


Legal Specific Disclaimer: 

The following information is not exhaustive, nor does it apply to specific circumstances. The content therefore should not be regarded as constituting legal or regulatory advice and not be relied upon as such. Readers should contact a legal or regulatory professional for appropriate advice. Further, the law may have changed since the first publication of this information.


The content of this Cover Overview is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2022 Zywave, Inc. All rights reserved.

RS Risk Solutions Logo

If you would like advice or a quotation please contact us.

We are an independent and regulated UK insurance broker predominantly supporting clients in:
London and the South East including: Surrey, Kent, East Sussex, West Sussex, Ashford, Bexhill, Brighton, Caterham, Chatham, Copthorne, Crawley, Crowborough, Croydon, Dorking, East Grinstead, Eastbourne, Edenbridge, Forest Row, Gillingham, Gravesend, Hastings, Haywards Heath, Heathfield, Horley, Horsham, Hove, Kingston upon Thames, Leatherhead, Lewes, Lingfield, Maidstone, Newhaven, Oxted, Redhill, Reigate, Royal Tunbridge Wells, Seaford, Sevenoaks, Sutton, Swanley, Tonbridge, Uckfield, Woking, Worthing

More Articles

Manufacturing – Mitigating Risks

Manufacturing businesses play a pivotal role in our economy, producing goods that serve as the backbone of numerous industries. However, with great opportunity comes great

BT’s Redcare Announces Closure

BT’s Redcare is withdrawing their signalling system for intruder and fire alarms services from the market. Customers will  need to seek alternative suppliers before 1

Cyber Security

Cyber Insurance Market Outlook for 2024

Increased cyber-attacks with new evasive tactics, hacktivist-based attacks and frequent ransomware have created a volatile risk environment for organisations of all types and sizes over

RS Risk Solutions Logo

Request a callback

By providing the above information you consent to RS Risk Solutions Limited contacting you by any of the methods that you have provided details for. We will process this information in accordance with our privacy notice.

RS Risk Solutions uses cookies to monitor the performance of this website and improve user experience. To find out more about cookies, what they are and how we use them, please see our privacy notice, which also provides information on how to delete cookies from your hard drive.