17 November 2022

Autumn Statement: Hunt shores up public services

Autumn Statement: Hunt shores up public services image
Image: Alexandros Michailidis / Shutterstock.com

Chancellor Jeremy Hunt has unveiled an Autumn Statement aimed at stabilising the economy in the aftermath of his predecessor’s catastrophic mini Budget in September.

Mr Hunt outlined his priorities of ‘stability, growth and public services’, as the country grapples with recession and soaring inflation. He has binned existing bids for former Prime Minister Liz Truss’ flagship investment zones policy and promised to ‘refocus’ the programme.

Local government will see plans for social care reform – with a lifetime cap on social care costs – delayed for two years. In addition, the current council tax referendum threshold will be raised for social care authorities from 3% to 5%.

The council tax increase will go part way to replacing the National Insurance health and social care levy which was scrapped by Kwasi Kwarteng’s mini-Budget.

Mr Hunt also pledged a further £1bn in grant for social care next year, with £1.7bn the following year, alongside additional funding of £3.3bn each year or the next three years for the NHS.

The Chancellor also announced former Labour health secretary Patricia Hewitt would launch a review on how to make Integrated Care Boards operate more effectively ‘with appropriate autonomy and accountability’.

Elsewhere in the Budget the Chancellor confirmed the much delayed second round of Levelling Up – a £1.7bn fund for infrastructure – would be allocated by the end of the year.

He also announced a new mayor and devolution deal for Suffolk CC, with ‘advanced discussions’ for devolution in Cornwall, Norfolk and the North East of England. Greater Manchester and the West Midlands combined authorities will also have expanded deals.

‘Soon over half of England will be covered by devolution deals,’ he added.

Mr Hunt told Parliament: ‘We need to make it easier for local leaders to make things happen without banging on a Whitehall door.’

As part of the Government’s cost of living measures, Mr Hunt announced a 7% cap on social housing rents which would otherwise rise by inflation - currenty 11% - plus 1%, alongside extra cash for pensioners, the disabled and those on benefits.

The move will put further pressure on housing department budgets which already face inflation and pressure to improve housing stock post-Grenfell and to meet carbon emission targets.

Taking a protective approach to infrastructure told MPs: ‘I’m not cutting a penny from our capital budgets for two years, and maintaining them for the next three years in cash terms.’

However, the announcement will mean a real terms cut due to inflation.

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