Autumn Statement 2023: When is it and how will it affect me?

The government will shortly announce its tax and spending plans for the year ahead.

The Autumn Statement affects the take-home pay and household budgets of millions of people, as well as setting out how much will be spent on key public services.

Chancellor Jeremy Hunt will deliver the Autumn Statement in the House of Commons on Wednesday 22 November 2023.

The speech usually happens at lunchtime.

The Autumn Statement is one of the key financial events in the political calendar.

The chancellor updates MPs on the country's finances and the government's tax and public spending plans based on the latest forecasts from the Office for Budget Responsibility (OBR).

Inflation is still too high

Inflation - the rate at which prices rise - has fallen sharply since the high of 11.1% in October 2022, but households are still being squeezed.

The CPI measure of inflation was 6.7% in the year to September - the same as in August. But that is still three times the Bank of England's 2% CPI target.

The government has pledged to get inflation down to around 5% by the end of 2023.

Government borrowing is soaring

Government borrowing costs have shot up, meaning the Treasury has to pay back more in debt interest.

That could leave Mr Hunt with less money to spend on public services, or make it harder to cut taxes.

The chancellor is under pressure from his party to cut taxes, but has so far ruled it out.

However, Tory cabinet minister Robert Jenrick recently told the BBC that cuts were a possibility if the government meets its target of halving inflation.

It seems unlikely, but Mr Hunt could change course at the Autumn Statement.

The government should set out how much pensions will rise by from April 2024.

Under the so-called triple lock, the state pension is supposed to increase by the highest out of inflation (as measured by CPI the previous September), average earnings, or 2.5%.

Instead, ministers may use earnings data that strips out the impact of bonuses and one-off payments. That would mean an increase of only 7.8%, saving about £1bn.

Reports have suggested the government may stop people making new claims for a set period if they have been persistently sanctioned for breaking these rules.

The scheme was extended for 12 months to finish in December 2023, but may continue for another year.

New homeowners who make their properties more energy efficient within two years could receive a partial stamp duty rebate, according to the Telegraph.

The plan was recommended by the Energy Efficiency Taskforce which the chancellor set up in last year's Autumn Statement.

IHT is currently charged at 40% over the tax-free threshold of £325,000, but the Sunday Times says ministers are considering reducing the rate or scrapping the tax.

Reports suggest the chancellor may shake-up the tax-free Isa savings market.

He could launch a combined cash-and-shares Isa to encourage more investment in the UK stock market.

Some parts of the Autumn Statement affect the whole of the UK.

However, the governments of Scotland, Wales and Northern Ireland also make some tax and spending decisions independently - although Northern Ireland doesn't currently have a functioning executive.