Autumn Statement: Energy price cap increase dampens Hunt’s ‘tax cuts’ as he denies pre-election handout – live

Tory moderates in the One Nation group praised Mr Hunt. Deputy leader Stephen Hammond said the chancellor’s moves were both “fiscally responsible” and “compassionate” – pointing to the boost for living wage and benefits being uprated with a higher inflation figure.

“Today’s statement reflects the importance of controlling inflation but at the same time brings welcome relief to families and businesses,” he said.

The Independent’s Budget calculator, created by tax advisory firm Blick Rothenberg, below will help you to determine whether you are better or worse off following the autumn statement:

Mr Hunt said the Budget meant the biggest tax cuts since the 1980s, but Paul Johnson, of the Institute for Fiscal Studies (IFS), said it was a “tiny bit cheeky”:

Pension savers could have a “pot for life” under plans to tackle the problem of people building up lots of smaller pots when they move from job to job.

The Government wants to hear evidence on a lifetime provider model, which would allow people to have contributions paid into their existing pension scheme when they change employer, providing greater control over their pension.

Rachel Vahey, head of policy development at AJ Bell, said: “The biggest sticking point to these proposals is the burden on employers. Currently, UK firms of all sizes – from corner shops to multinationals – are required to set up a workplace pension scheme for their staff.

“This is already a significant administrative undertaking. But forcing both large and small businesses to connect to any pension scheme an employee chooses could significantly increase that burden.”

Sean O’Grady fears the bad times aren’t over:

We are now putting our live coverage of the autumn statement on hold for this evening.

Good morning, and thanks for joining us on our politics liveblog this morning, which we’ll be using to bring you live updates with all the reaction to Jeremy Hunt’s autumn statement.

Jeremy Hunt has fired the starting gun on the Conservatives’ general election campaign with what he hailed as the biggest package of tax cuts since the Thatcher era, including a boost for 27 million workers.

The chancellor announced a higher-than-expected 2 per cent reduction in national insurance contributions, which he said would save the average worker £450 a year.

But even as he was on his feet unveiling the plans, the Office for Budget Responsibility (OBR) sharply downgraded its economic forecasts, predicting lower growth and warning that inflation will stay higher for longer.

It also said Britain is still on course for the highest overall tax burden since the Second World War, despite Mr Hunt’s giveaways.

The chancellor declared his autumn statement would help “turbo-charge” the economy, but the Institute for Fiscal Studies (IFS) cautioned that his plans were bad for growth.

It came as:

• Mr Hunt made a £11bn-a-year tax break for firms permanent and cut taxes for the self-employed
• The chancellor maintained the triple lock, meaning state pensions will rise by 8.5 per cent
• He confirmed benefits would rise in line with September’s 6.7 per cent inflation figure
• He also extended a freeze on alcohol duty and boosted the living wage to £11.44 an hour
• But he unveiled a benefits crackdown campaigners warned will “punish” the disabled
• Rachel Reeves used The Independent’s Saatchi & Saatchi scoop to attack the Tories

For a quick recap of yesterday’s news, our lobby team has this comprehensive report:

Jeremy Hunt has been doing the media rounds this morning in defence of his autumn statement.

Speaking to Times Radio, the chancellor insisted that the tax cuts he announced were “the single biggest thing I could do for long-term growth”.

Speaking from the Airbus factory in north Wales, Mr Hunt said he opted for national insurance and business tax cuts because they “will make the biggest difference to our long-term competitiveness”.

He said: “It’s a fundamental Conservative principle that we think you need to grow the cake before you have discussions about how you cut it up. I can make a start – and that’s what I did yesterday – in reducing the tax burden, but I’ve chosen to do it in a way that’s going to grow the economy.”

Jeremy Hunt has denied his decision not to increase public spending in line with inflation will result in worse public services.

Asked the question, the chancellor told Times Radio: “No, and the reason is very straightforward. If we want to have money to invest in the NHS, in schools, in our armed forces over the longer term, you have to grow the economy.

“That is the only way in the longer run that you can fund the cost of an ageing population and that’s why I took those decisions for the long term.

“In the short run, I am showing discipline with public spending. I think that is the right thing to do. We need a more productive state, not a bigger state.”