← Back to House of Commons Debates
Autumn Statement
22 November 2023
Lead MP
Jeremy Hunt
Debate Type
Ministerial Statement
Tags
TaxationBenefits & WelfareLocal Government
Other Contributors: 44
At a Glance
Jeremy Hunt raised concerns about autumn statement in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Government Statement
The Chancellor's statement focused on economic recovery, growth measures, tax cuts, and anti-inflationary efforts. He highlighted the reduction of inflation from 11.1% to 4.6%, stating that inflation will fall below 3% by the end of 2024. The OBR forecasts show a reduced debt ratio compared to earlier predictions, with borrowing projected to decline steadily through 2028-29. He also announced measures to support families and individuals affected by rising costs, such as an increase in universal credit and benefits linked to September's inflation rate, providing additional rental assistance via local housing allowance increases, freezing alcohol duties until August next year, and maintaining the triple lock on pensions with a 8.5% increase from April 2024. The Chancellor emphasised significant investment in infrastructure and business incentives, including £11 billion of support for manufacturing sectors over five years, £960 million for green industries growth accelerator initiatives, and reforms to pension funds and capital markets aimed at boosting high-growth companies’ financing. He also announced the abolition of compulsory class 2 national insurance payments and a reduction in class 4 national insurance by one percentage point from April 2024.
Douglas Ross
Con
Moray
Question
What measures are in place to address the recent spike in alcohol prices?
Minister reply
The Chancellor announced a freeze on all alcohol duties until 1 August next year, confirming their Brexit pubs guarantee which ensures that duty on a pint is always lower than in shops.
Simon Jupp
Con
East Devon
Question
How will the measures to support retail and hospitality businesses be implemented?
Minister reply
The Chancellor announced an extension of the 75% business rates discount for retail, hospitality, and leisure sectors for another year, saving the average independent pub over £12,800 next year.
Virginia Crosbie
Con
Ynys Môn
Question
What details are available on investment zones in Wales?
Minister reply
A second investment zone will be established in the region of Wrexham and Flintshire, based on local partnership expectations to catalyse over £3 billion of private investment and 65,000 new jobs.
Rachel Reeves
Lab
Leeds West
Question
How do you justify the overall increase in taxes despite announcing cuts?
Minister reply
The Chancellor reiterated that despite targeted tax cuts for businesses and workers, other measures such as council tax increases imposed by local authorities have contributed to an overall higher tax burden under his leadership.
Rachel Reeves
Lab
Leeds West
Question
Today, the Chancellor has lifted the lid on economic failure, revealing a £40 billion smaller economy forecast by 2027 compared to March forecasts. The shadow chancellor criticised today's cuts in national insurance and highlighted previous tax increases that left working people worse off. She also pointed out the Prime Minister’s reversal of stance on raising national insurance and accused the government of cynically clamping down on stealth taxes.
Minister reply
The Chancellor defended his statement by highlighting Labour's economic legacy, noting that despite inheriting a strong economy from Conservatives, they left it in poor condition. He emphasised faster growth under Conservative leadership compared to other major European economies and criticised Labour’s inflationary borrowing plans.
Harriett Baldwin
Con
West Worcestershire
Question
The MP welcomed the reduction in inflation from 11.1% last year to 4.6%, expecting further decline as forecasted by the Bank of England, and enquired about the impact of the Chancellor's measures on growth and inflation.
Minister reply
The Chancellor thanked the MP for her wisdom and confirmed that according to OBR forecasts, his measures would permanently increase GDP by 0.3% and those from the spring Budget by 0.2%, totalling an increase of 0.5%. These measures are aimed at driving growth and improving economic stability.
Drew Hendry
SNP
Inverness N.-Ish
Question
The MP criticised the Chancellor's measures as inadequate, noting high inflation and taxes despite some minor relief measures for veterans and businesses. He highlighted the lack of support for mortgage and rent payers, food security initiatives, energy bill rebates, social tariffs, working-age benefit increases, and VAT cuts for tourism and hospitality sectors.
Minister reply
The Chancellor acknowledged that his policies focus on economic growth through tax cuts and backing Scottish business, while addressing inflation and the cost of living crisis. He pointed out the increased local housing allowance, benefit hikes, and state pension increments as measures to support the most vulnerable.
Peter Bottomley
Con
Worthing West
Question
The MP thanked the Chancellor for changes in the local housing allowance and for freezing alcohol duty. He also raised an issue concerning overseas pensioners, specifically highlighting Anne Puckridge's case of being underpaid compared to what she would receive if living within the UK.
Minister reply
The Chancellor promised to look into the matter regarding overseas pensioners as requested by Mr Bottomley and acknowledged past economic mismanagement by previous Labour governments leading up to the 2008 financial crisis.
Angela Eagle
Lab
Wallasey
Question
The MP asked whether the Chancellor omitted mentioning the freezing of tax thresholds, which is expected to bring in £52 billion over six years.
Minister reply
The Chancellor confirmed that while the decision to freeze thresholds was difficult and necessary for controlling borrowing and tackling inflation, he decided to reduce this burden due to better-than-expected economic performance.
Question
The MP welcomed measures promoting investment and growth but asked the Chancellor to review IR35 regulations which prevent self-employed individuals from expanding their businesses. He also noted that the VAT threshold acts as a disincentive for small business expansion.
Minister reply
The Chancellor expressed willingness to revisit concerns about IR35 and acknowledged colleagues' feedback regarding the cliff edge issue associated with the VAT threshold.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
Question
Can the Chancellor confirm that living standards will drop by 3% in the next year?
Minister reply
What I can confirm to the hon. Lady is that a year ago they were predicted to fall by 3.7%, and now the OBR says that they will increase this year by 2.5%.
Alberto Costa
Con
South Leicestershire
Question
What positive message has the Chancellor for the residents, businesses, pensioners and all people of working age in Blaby and Glen Parva?
Minister reply
For every single small business we have frozen business rates, and we are rolling over a 75% discount on business rates for every pub, restaurant and high-street shop for another year. We want to do everything possible to back small businesses.
Sarah Olney
Lib Dem
Richmond Park
Question
This statement is a deception from the Chancellor after years of unfair tax hikes. What will he look the British people in the eye and admit?
Minister reply
We have grown faster than any major European economy since 2010. We put an extra £3.3 billion into the NHS budget last year.
Jesse Norman
Con
Hereford and South Herefordshire
Question
Will he consider talking further with the Secretary of State for Environment, Food and Rural Affairs about whether some package could be put in place to support the long-term improvement of River Wye?
Minister reply
Government have made changes requiring water companies to invest more than £50 billion in the years ahead.
Stephen Timms
Lab
East Ham
Question
Will there be a household support fund next year?
Minister reply
Yes, there will.
Bob Blackman
Con
Harrow East
Question
Does my right hon. Friend understand that we will need to recruit more people for planning reforms? Does this need legislation and what is the timeframe?
Minister reply
We want full cost recovery with respect to local councils, start training up more planning officers.
Erith and Thamesmead
Question
Does the Chancellor agree that the Prime Minister was wrong last year to try to increase national insurance?
Minister reply
What the Prime Minister wanted to do is what he has delivered as Prime Minister, finding a way to deliver extra funding to the NHS.
North Cotswolds
Question
Can I just mention one subject that is dear to my heart, the tourist tax?
Minister reply
We want to do everything possible to make our tourism and retail industry competitive. We are looking again at the numbers in light of the most recent data.
Sammy Wilson
DUP
East Antrim
Question
Will those measures be subject to Barnett consequential payments?
Minister reply
For reserved matters, there obviously would not be Barnett consequentials. Where matters are not reserved, there would be consequentials.
Question
Has my right hon. Friend given any consideration to the effect on economic policy of mistaken forecasts from the OBR?
Minister reply
Not just the OBR found that its forecasts were wrong; nearly every commentator as well as the Bank of England and the International Monetary Fund did too.
Debbie Abrahams
Lab
Oldham East and Saddleworth
Question
Given this, what is the estimate of the number of social security claimants who will die as a consequence of these measures?
Minister reply
What we are introducing is not workfare; it is support to help people into work. We think that this is the route out of poverty and away from dependency.
Question
Can I urge the Chancellor to engage closely with the sector and with the Department for Education to make sure that we can meet those pressures when it comes to funding high needs in our schools?
Minister reply
The average teacher will see an increase of £630 in their take-home pay next year because of the 2% cut in national insurance contributions.
Gavin Newlands
SNP
Paisley and Renfrewshire North
Question
The Chancellor mentioned support for carbon capture and storage and for hydrogen, and the Prime Minister earlier spoke of support for the oil and gas sector. The Chancellor will be all too aware of this morning’s announcement of the intended closure of the Grangemouth oil refinery, which represents a huge 4% of Scottish GDP and provides hundreds of jobs. What discussions has he had with the Energy Secretary, with Petroineos or with the Scottish Government with the aim of trying to stop this closure before its disastrous impact can come to pass?
Minister reply
We are obviously monitoring the situation extremely carefully, but it is our priority to support the oil and gas and refinery industries. We have made some big changes to do that, and we would welcome support from both sides of the House in doing so.
John Baron
Con
Basildon and Billericay
Question
I commend the Chancellor for the compassion and enterprise incentives that shine through his statement. I thank him for the UK retail disclosure framework, although I have not seen the detail, and for the promise of a statutory instrument to resolve the legislative issues with cost disclosure for investment companies. Can he assure me that that will correct the over-zealous regulation that is making investment companies look unduly expensive and thereby restricting investment?
Minister reply
I have had many discussions with my hon. Friend on this issue and he is absolutely right. There is a danger with over-zealous regulation that people are focused more on cost than on performance. Like him, I want to resolve the issue.
Barbara Keeley
Lab
Worsley and Eccles South
Question
The Chancellor talked about the creative industries but then announced only that he would look at improving film and high-end TV tax credits. The cultural tax reliefs continue to help our orchestras, theatres, museums and galleries to survive, and they protect jobs. At the 2023 Budget, he extended the uplifted rate of relief until March 2024, after which it will taper, but sadly he also introduced changes to limit what cultural organisations can claim for. Orchestra tax relief is a critical source of income; without it, some orchestras say they could fold, with musicians losing their jobs. Will he look not just at film and high-end TV tax credits but at all the cultural tax reliefs and how they can continue to support jobs in our creative industries?
Minister reply
Having only just delivered the autumn statement I do not want to pre-empt what might be in the spring Budget, but there will be another fiscal event before the end of the financial year in which all these things will be looked at. With respect to orchestras, which are fantastically important to our cultural landscape, I will just say that the typical person playing in an orchestra will get a £450 increase in post-tax pay next year, and that will help them greatly.
Alun Cairns
Con
Vale of Glamorgan
Question
I congratulate my right hon. Friend on his statement, which will make a significant difference to investment levels, employment and living costs, recognising that it is all in the context of the cost of covid and the energy shock brought about by the conflict in Ukraine—that is something we often forget. May I pass on to him the appreciation of the beer and pub sector? The freeze in duty and continuation of the reduction in business rates is exactly what the sector asked for, and it is an early Christmas present to the many of us who want to celebrate in great style as we approach the festive season. Will my right hon. Friend please continue to engage with those in the sector and listen to what they have to say, so that they can share their investment ambitions?
Minister reply
I commit to my right hon. Friend that I will not just continue to engage with the sector, but continue to enjoy the odd glass of Penderyn, which is my favourite whisky.
Clive Efford
Lab
Eltham and Chislehurst
Question
Can the Chancellor confirm that, after today’s tax cuts, we will still have the highest tax burden for 70 years—up £4,000 per household on pre-pandemic levels—when we go into the next general election?
Minister reply
What I can confirm is that after today’s measures we will have the lowest income tax burden for someone on average pay in the G7—lower than Japan, America, France, Germany, Italy and Canada.
Vicky Ford
Con
Chelmsford
Question
Our economy is growing rather than receding due to investment, innovation and millions of hard-working individuals across the country, as well as a Government who have focused on tackling inflation. Does the Chancellor agree that, on this side of the House, we get it that no country can spend its way to prosperity?
Minister reply
My right hon. Friend is absolutely right. High inflation is destabilising for an economy: it stops businesses investing, it stops families spending, and it causes misery to people who see the cost of their weekly shop go through the roof. That is why it has been our No. 1 priority. It would be great if it were Labour’s, too.
Keir Mather
Lab
Selby
Question
It is frankly embarrassing that the Chancellor and the Prime Minister have spent this afternoon celebrating inflation staying 2% above target, while families in Selby and Ainsty face 10% food inflation every time they use the supermarket. What message does the Chancellor think his celebrations send to those hard-working families?
Minister reply
It is not celebrating that has halved inflation from 11.1% a year ago; it is hard work and difficult decisions, which unfortunately were mainly opposed by Labour.
Scott Benton
Con
Blackpool North and Cleveleys
Question
I commend the Chancellor for his statement, which delivers for the people of Blackpool. Five thousand of my constituents will benefit from a boost to the national living wage and 12,000 pensioners in my constituency will be £900 per year better off, while those in work will be £450 better off as a result of the cut to national insurance. Does he agree that this is only possible because of the difficult long-term decisions that this Government have taken—an approach that stands in stark contrast to the tax, borrowing and spending offered by the Opposition?
Minister reply
The shadow Chancellor cannot hear these things too many times. She loves copying and pasting our policies, and there is another that she could merrily get copying and pasting. Here is the reason why my hon. Friend is absolutely right—[Interruption.] Let me tell the shadow Chancellor the reason—it is very straightforward. We had an economic crisis thanks to the energy shock and the pandemic; Labour had an economic crisis because of what happened in the financial markets. The difference is that we took tough decisions to bring back fiscal responsibility and they ducked every single one.
Rachael Maskell
Lab Co-op
York Central
Question
The biggest disparity in local housing allowance comes from the geography of broad rental market areas. In York, given the way these things are calculated, LHA is £650 but there is a £983 cost on top of that for a property. It is not working, so will the Chancellor review the BRMA?
Minister reply
I am happy to discuss that matter with the Secretary of State for Work and Pensions. I recognise that the hon. Lady has campaigned on the issue sincerely for some time. I will say, though, that the decision to increase local housing allowance to the 30th percentile will help 1.6 million families with an extra £800. I hope she recognises that that will make a difference.
Greg Smith
Con
Mid Buckinghamshire
Question
From tax cuts for 27 million workers to incentives for business to grow, support for pensioners and a continued lifeline for our great British pubs and pints, I warmly welcome the good start that my right hon. Friend has made on reducing the tax burden as we recover from the pandemic and the energy shock. I thank him in particular for the recognition he has shown to the self-employed, not just by reforming class 2 and class 4 national insurance contributions to make them fairer, but by sending the signal that, just as the self-employed were an integral part of our recovery from the time the Labour party crashed the economy when they were last in government, we now need as many people as possible to take the step to start their own enterprise and help this country grow.
Minister reply
I could not agree more with my hon. Friend. The whole purpose of our approach is to make it easier for people who are prepared to take risks to work hard, and no one exemplifies those values better than the self-employed. I thank him for being one of this country’s greatest defenders of the great British pint.
Battersea
Question
It really is a scandal that disabled people are being punished yet again for this Government’s economic failures, with today’s announcements of more cruel and callous cuts, and the announcement that they will be forced to work from home. Evidence shows that sanctions do not incentivise people to work but are harmful and counterproductive. The Chancellor’s plan will only further erode the social security safety net, following 13 years of austerity, the war waged against disabled people and the hostile environment. Does he not understand that his plan will only punish disabled people, pushing them further away from the labour market and leading to poorer health outcomes?
Minister reply
With the greatest respect to the hon. Lady, let me say that we introduced a plan to help disabled people to get back into work, as many of them say they would like to do, and in just four years it has got 1.4 million disabled people back into jobs.
Ben Bradley
Con
Huntingdon
Question
I welcome an autumn statement from the Chancellor that cuts taxes, invests in growth, seeks to shrink the size of the state and reforms welfare. It will go down well with the vast majority of my constituents who voted for a Conservative Government in 2019, and I very much welcome it too. I particularly thank him for his continued commitment to our east midlands investment zone and freeport, where he has listened to stakeholders in extending the time for and adding more investment to our major growth plans. Will he continue to work with us in the region to ensure that, alongside our development company and our new east midlands combined authority, we are able to properly harness these tools to deliver an amazing regional growth strategy and all the growth and investment that he wants to see?
Minister reply
I thank my hon. Friend for his role in the transformation of the east midlands, through his other responsibilities in the councils there. Levelling up will work only if we harness the enterprise and ideas of local civic leaders, and he is a fantastic example of that.
Wendy Chamberlain
Lib Dem
North East Fife
Question
Today is Equal Pay Day, which means women stop being paid compared with men. More concerning is the pension gap of 35%, where female pensioners cease receiving payments on 26 August. When will the Government consider reforming carer’s allowance and address the cliff edge issue?
Minister reply
I am always happy to engage with any hon. Members if they have concerns about the way the benefits system operates in terms of disincentivising people who would like to work but cannot do so, including caring responsibilities.
Mike Kane
Lab
Wythenshawe and Sale East
Question
Since 2010, Manchester City Council has had cuts amounting to £443 million and Trafford Council to £288 million. The Local Government Association predicts a funding gap of £4 billion in the next two years. What will stop the continuing decline in local services?
Minister reply
The hon. Gentleman is omitting the fact that in the autumn statement a year ago, an increase of £4.7 billion from next year for adult social care was found, which will make an enormous difference to every council in the country.
Question
Further to the Chancellor’s answer on Northern Ireland and Barnett consequentials, he is aware of the budget crisis. Will he confirm that discussions are open for a fiscal floor and an invest-to-save transformation package for any potential restored power sharing Executive?
Minister reply
The UK Government will continue to do everything we can to support the restoration of power sharing in Northern Ireland, and all I will say is that the Treasury is actively involved in those discussions.
Question
In recognition of electricity pylon development impact on properties, compensation of £1,000 per property per year for 10 years was announced. Does this policy apply in Wales? If not, will the Welsh Government receive funding for developments where they have competence?
Minister reply
My understanding is that this will apply to Wales in exactly the same way as it applies to the rest of the UK, and we need to work out the most sensible, proportionate and balanced way of solving the problem.
Imran Hussain
Lab
Bradford East
Question
In the worst cost of living crisis ever seen, key measures announced do not address investing in deprived communities or ensuring the richest pay their fair share. Just what is that supposed to do for my constituents facing mortgage payments and food price increases?
Minister reply
Our support for people struggling with cost of living pressures has risen to £104 billion; pensioners will get an increase next year three times the rate of inflation, benefits double inflation, those on low incomes see an £800 increase through local housing allowance.
Question
Despite cancelling HS2 due to spiralling costs, he confirmed a blank cheque for Hinkley Point C and Sizewell C. If it is good enough for HS2, why does he not scrap Sizewell C and save from that nuclear financial disaster?
Minister reply
We are going to have to have more renewable energy if we want to get to net zero; unfortunately there are days when the sun does not shine and wind does not blow.
Question
Public sector investment is scheduled to fall by £14 billion in real terms over the next five years. Why has he not taken the opportunity today to align ourselves with the rest of the G7 regarding public services?
Minister reply
Let me gently remind the hon. Gentleman that business investment has grown more since 2010 than it grew under Labour; we have the second highest growth in the G7, faster than any country’s except America.
Question
The unionised manufacturing base of my constituency is diminished by fast fashion and sweatshops. What action will be taken to regulate brands and retailers for sustainable outcomes of their products and wage justice?
Minister reply
If the hon. Lady has any examples of people not paying the national living wage who are legally obliged to do so, she should tell the authorities; we have overtaken France to become the eighth largest manufacturer in the world.
Question
The Chancellor announced £960 million for green industries growth accelerator but no mention of reliable clean cheaper energy sources such as tidal or pump storage hydro. Why not?
Minister reply
We are always open to investing in new technologies and will continue to look at all new opportunities, including things like tidal.
Shadow Comment
Rachel Reeves
Shadow Comment
The Shadow Chancellor criticised the statement as an admission of economic failure over 13 years, noting that GDP forecasts have been revised downward for each year through 2027. She highlighted rising mortgage costs, high inflation, pressure on public services, and ongoing struggles for many families to make ends meet under Conservative rule. The Labour opposition argued against the Chancellor's central tax cut proposal, pointing out previous commitments from both the Prime Minister and the party to raise national insurance rates and emphasising that overall taxes will be higher at the next election than in 2019. She accused the government of passing costs onto workers through council tax hikes and other stealth taxes, arguing that their policies prioritise power retention over genuine economic priorities.
▸
Assessment & feedback
Summary accuracy
About House of Commons Debates
House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.