Here's what the Chancellor's autumn statement means for Scotland

The Chancellor has announce a series of actions in his Autumn statement as he looks to re-build the economy.

In his speech Jeremy Hunt accepted that the UK is in recession - but believes his plan will help reduce debt and ease the cost of living crisis.

Some of the announcements will have an impact in Scotland, but others are devolved so will not - for example the freeze in income tax.

However the freeze on the threshold of national insurance does take effect north of the border.

Energy bills:

Many of us will see another rise in our energy bills come April.

Whilst Mr Hunt has extended the price guarantee it will be less generous.

This means a household using the average amount of gas and electricity will pay £3,000 a year, up by £500 at current prices.

But the Chancellor says that figure could have been £700 higher without the scheme.

Pensions and benefits:

Both pensions and benefits will rise in line with September's inflation rate, which is 10.1%.

Mr Hunt says as a result that means the Government is sticking to it's "triple lock" on state pensions.

Jeremy Hunt said Work and Pensions Secretary Mel Stride will review "issues holding back workforce participation", which will conclude early in the new year.

He said he also wanted to help people already working to raise their incomes and become financially independent, adding: "That is why we will ask over 600,000 more people on Universal Credit to meet with a work coach so that they can get the support they need to increase their hours or earnings."

Mr Hunt said he would also move back the managed transition of people from employment and support allowance on to Universal Credit to 2028, adding he will invest an extra £280 million in DWP to "crackdown" on benefit fraud and error over the next two years.

The Government's review of the state pension age will be published in early 2023, the Chancellor said.

The National Living Wage will be increased by 9.7% to £10.42 an hour, giving a full-time worker in Scotland a pay rise of over £1,600 a year, benefitting 160,000 of the lowest paid workers.

Wind-fall tax:

The Chancellor has said he will increase the Energy Profits Levy from 25% to 35%.

Jeremy Hunt told the Commons: "I have no objection to windfall taxes if they are genuinely about windfall profits caused by unexpected increases in energy prices.

"But any such tax should be temporary, not deter investment and recognise the cyclical nature of many energy businesses. Taking account of this, I have decided that from January 1st until March 2028 we will increase the Energy Profits Levy from 25% to 35%."

On a windfall tax on electricity generators, he said: "The structure of our energy market also creates windfall profits for low-carbon electricity generation so, from January 1st, we have also decided to introduce a new, temporary 45% levy on electricity generators. Together these taxes raise £14bn next year."

NHS:

Jeremy Hunt has increased the budget of the NHS in each of the next two years.

Extra money is also coming to Scotland to try and help tackle the extra pressures of health boards.

It'll be hoped those funds could help reach new pay deals to avoid strike action.

Detailing the Barnett formula, he said: "The NHS and schools in Scotland, Wales, and Northern Ireland face equivalent pressures so the Barnett consequentials of today's statement mean an extra £1.5bn for the Scottish Government, £1.2bn for the Welsh Government, and £650m for the Northern Ireland Executive."

A75:

The Chancellor also reaffirmed the UK Government's commitment to work with the Scottish Government in looking at options to improve the A75.

Scottish Secretary Alister Jack said:

“The Scottish Government will receive an additional £1.5 billion, to help support public services in Scotland. We are also putting extra money into two key projects in Scotland. Catapult will help grow our offshore energy capability, and a feasibility study to upgrade the A75 will pave the way for much improved connectivity between Scotland, Northern Ireland and England."

Reaction:

The STUC - Scotland's trade union council - claims workers are being "held to ransom" for the "financial implosion of the UK Government."

STUC General Secretary Roz Foyer said:

“Despite his glowing tribute to Nigel Lawson, this is a budget fronted by two of the richest men in British politics that was more ‘Big Bust’ than ‘Big Bang’.

“Working people should not be thankful for a meagre rise in the minimum wage whilst the OBR predicts their incomes will be reduced by 7%. This is in addition to a sleekit tax on workers through the elongated freeze on national insurance contributions. We need wealth taxes, not stealth taxes and the Scottish Government must not repeat the mistakes of this beleaguered Chancellor seeking to cover the tracks of his predecessor.

“Workers across Scotland are being held to ransom for the financial implosion of the UK Government. We cannot afford austerity; we cannot afford public spending cuts and we cannot afford more years of a Tory Government that callously neglects the poorest communities across the country in their hour of need.

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