Jeremy Hunt hails UK growth as he unveils autumn statement
The Prime Minister said he understood how “important” the pledge guaranteeing pensioners a decent rise is to our readers.
He promised a “better future” after doing the “hard yards” to get the economy back on track.
Around 27 million workers were given tax cuts worth hundreds of pounds in the Autumn Statement by Chancellor Jeremy Hunt, while businesses were offered huge cashback support to invest in new machinery in the plan to boost growth.
Rishi Sunak told the Daily Express: “We very much wanted to protect the triple lock for pensioners. I know just how important the triple lock is to Express readers. This Government introduced the triple lock and has remained committed to it.
READ MORE… ‘I’m living with MS – here’s why I think Hunt’s benefits reforms are barbaric’
“We understand just how much the cost of living has impacted and I know that Express readers will understand how events like the pandemic and war in Ukraine have been outside our control. We’ve done the hard yards to get to the position where we can put money back in people’s pockets.
“Things are improving. We’ve turned the corner.
“Our discipline has been absolute in getting the country back into a positive position.
“Express readers and their concerns are very much in our thoughts and I wish to thank them for their understanding and support.
“There’s a better future ahead and more to come.”
Jeremy Hunt announced tax cuts in his autumn statement after public finances were better than had been originally forecast.
National insurance is being reduced by two per cent, which will save someone earning £35,000 more than £450.
A tax break allowing firms to cut their bills if they invest in new equipment will be made permanent, in the “biggest business tax cut in modern history”.
But while the statement reduces the tax burden by 0.7% compared with forecasts in March it still rises to a record post-war high of 37.7% of GDP by 2028-2029.
Growth forecasts also remain sluggish as the economy stutters back from the double blow of the pandemic and invasion of Ukraine.
Mr Hunt heard the demands of nearly 280,000 people who backed our petition with Silver Voices for payments to rise by 8½%.
It followed months of uncertainty over whether the Chancellor would try to shave £900 million off the bill by using a lower figure.
Hunt discusses pension triple lock in Autumn Statement
- Support fearless journalism
- Read The Daily Express online, advert free
- Get super-fast page loading
Mr Hunt confirmed that he would stick to the traditional calculation for next April’s rise rather than stripping out public sector bonuses to pay a lower rate of 7.8%.
It means the full basic state pension will rise by £13.30 per week, from £156.20 to £169.50 – an extra £691.60 a year – while the full new state pension will rise by £17.35 per week, from £203.85 to £221.20 – another £902.20 annually.
The triple lock was introduced by the coalition government in 2010 and came into force the following year.
It has been applied every year since, except for a temporary suspension in 2022-2023 as a result of the pandemic.
But the lock has faced uncertainty since then as the government under Liz Truss and then Rishi Sunak tried to find ways to save money.
Mr Hunt said: “I recognise what a big campaigning issue the triple lock has been for the Express. I’ve examined the impact of the triple lock closely and how it has helped lift a quarter of a million pensioners out of poverty.
“During a period of high inflation it has helped those who have been worse hit than everyone else.
“We have to do the right thing and our commitment to the triple lock was definitely the right thing.”
The triple lock links state pension increases to the highest of 2½%, wages rises or inflation.
Office for National Statistics figures put average earnings between May and July up 8½% on the previous year.
Analysis of official figures found around 1.2 million households are “mainly reliant” on the dependent on the state pension for their retirement income.
It means at least three-quarters of their cash comes from the payment.
Single pensioners account for most of the households largely and three times as many women, 580,000, as men 180,000, rely primarily on it.
Silver Voices director Dennis Reed said: “We smashed it again. The Daily Express/Silver Voices campaign has saved the triple lock for the second year running, thanks to the strong support of our readers and members.
“The Government heeded our warning that to dilute or scrap the Lock would deepen the cost-of-living crisis for older people.
“We will now campaign for the triple lock to be included in the 2024 manifestos of all the major political parties, to try and take the party politics out of safeguarding the incomes of senior citizens during economic hard times.
“But for now, this decision is a welcome fillip, as we enter what is likely to be a tough winter with energy and food prices continuing to rise.
“The Government has listened to our concerns over the state pension and we are delighted that the triple lock formula has been confirmed for 2024.”
Caroline Abrahams, the charity director at Age UK said: “We’re pleased and relieved the Government kept its promise to older people to honour the triple lock.
“For the 4.2 million older people who recently cut back on food and groceries to make ends meet, having a state pension that delivers the basics in life is the absolute minimum that should be expected.”
Jan Shortt, general secretary of the National Pensioners’ Convention said: “Mr Hunt did keep his promise to maintain the triple lock, guaranteeing an 8.5% increase in the state pension next April, which we welcome.
“But he failed to increase the tax thresholds, which means large numbers of older people will soon have to pay income tax for the first time, taking away the much-needed boost in their meagre income, and once again reducing their purchasing power.
In welfare system announcement changes, the Chancellor said people will lose their benefits if they do not look for a job to tackle a current “waste of potential” in the population.
He said he wanted to help the sick, disabled and long-term unemployed back into work – accusing Labour of offering compassion through money while Conservatives prefer to give “opportunity”.
Mr Hunt quoted post-pandemic figures of more than seven million adults of working age, excluding students, who are not employed, despite a million vacancies in the economy.
He said while “many can and want to work” the “system makes that too hard”.
The £2.5 billion back-to-work plan had been long-trailed ahead of the autumn statement, with the Treasury announcing last week that free prescriptions and legal aid will be cut off for benefit claimants who are deemed fit to work and do not seek employment, while digital tools will be used to “track” attendance at job fairs and interviews.
Addressing MPs in Parliament, Mr Hunt said: “Every year we sign off over 100,000 people on to benefits with no requirement to look for work because of sickness or disability.
“That waste of potential is wrong economically and wrong morally.”
Mr Hunt said the changes, which will see treatment rather than time off become the default when it comes to sick notes and benefits stopped altogether if people “choose not to engage with the work search process for six months”, will help grow the economy.
He said the work capability assessment will be reformed “to reflect greater flexibility and availability of home-working after the pandemic” and outlined £1.3 billion in spending over the next five years which he said will be focused on helping nearly 700,000 people with health conditions find jobs.
He added: “Over 180,000 more people will be helped through the universal support programme, and nearly 500,000 more people will be offered treatment for mental health conditions and employment support.”
Source: Read Full Article