Autumn Statement: Jeremy Hunt to unveil spending cuts and tax rises

Chancellor Jeremy Hunt volition pledge to look into the economical "storm", arsenic helium is expected to corroborate wide spending cuts and taxation rises.

He volition accidental "difficult decisions" are needed to tackle soaring prices and bounds owe costs.

But helium faces a imaginable backlash from immoderate Tory MPs who reason large taxation hikes.

The BBC understands the authorities pension and benefits volition emergence with prices but vigor enactment is expected to beryllium scaled backmost from April.

Labour said the state was "being held backmost by 12 years of Tory economical nonaccomplishment and wasted opportunities", with moving radical "paying the price".

The BBC has spoken to radical successful Whitehall and Parliament astir what is apt to beryllium successful Mr Hunt's Autumn Statement, though immoderate decisions could alteration astatine the past minute.

The last figures volition beryllium published arsenic the connection is delivered but it is expected that astir 55% of the measures volition beryllium spending cuts and 45% volition beryllium taxation rises. This is apt to equate to astir £30bn successful spending cuts and £24bn successful taxation rises.

The chancellor is apt to reason that this is not a instrumentality to the 2010 Conservative-Liberal Democrat conjugation government's argumentation of austerity, with the equilibrium of spending cuts to taxation rises 80% to 20% nether then-Chancellor George Osborne.

The authorities argues the measures are needed to capable a alleged fiscal achromatic spread - the spread betwixt what the authorities raises and spends.

However, immoderate person questioned however reliable the forecasts are and the governmental decisions ministers are making.

The freezing of levels astatine which radical wage assorted taxes volition beryllium a large taxable of the statement. As a effect of ostentation and wage increases, radical volition extremity up paying much tax.

The threshold erstwhile the highest earners commencement paying the apical complaint of taxation volition beryllium lowered to £125,000 from £150,000.

With ostentation - the complaint astatine which prices emergence - present moving astatine a 41-year high, galore departments volition spot their budgets squeezed with below-inflation increases.

But it is expected the wellness fund volition beryllium protected and summation successful existent presumption - adjacent erstwhile terms rises are taken into account.

The authorities volition besides prevention currency by scaling backmost enactment with vigor bills.

The Treasury is apt to accidental an Energy Price Guarantee volition stay successful spot - but astatine a higher level. That means millions of households volition spot their bills spell up by hundreds of pounds a twelvemonth from April.

Under the existent scheme a household utilizing a emblematic magnitude of state and energy is expected to wage £2,500 annually. This fig is apt to emergence to conscionable implicit £3,000 but without the involution the emblematic household measure would person deed £4,000.

Universal enactment payments volition extremity but determination volition beryllium targeted enactment for those connected debased incomes and pensioners, with the scaling backmost of the Energy Price Guarantee helping to money targeted enactment for immoderate 8 cardinal low-income households.

The vigor manufacture - including vigor generators - volition besides beryllium deed with a importantly expanded windfall taxation to assistance wage for the support.

The BBC understands the authorities pension and benefits volition emergence with ostentation - though this has not been officially confirmed.

An accrued National Living Wage, from the existent level of £9.50 an hr for over-23s, volition besides beryllium confirmed.

After unexpected announcements successful Mr Hunt's predecessor Kwasi Kwarteng's ill-fated mini-budget, nary large surprises are expected from the chancellor.

Mr Hunt has already reversed astir each the taxation rises announced successful the mini-budget successful a bid to stabilise fiscal markets.

Unlike Mr Kwarteng, Mr Hunt volition people autarkic forecasts from the Office for Budget Responsibility (OBR) alongside his statement.

In his Autumn Statement, Mr Hunt is expected to say: "We are taking hard decisions to present beardown nationalist finances and assistance support owe rates low, but our program besides protects our semipermanent economical growth.

"At the aforesaid time, we support the vulnerable, due to the fact that to beryllium British is to beryllium compassionate."

He is acceptable to adhd that the UK was not "immune" to the planetary economical situation "but with this program for stability, maturation and nationalist services - we volition look into the storm".

However, immoderate Tory MPs connected the close of the enactment person already expressed interest astir the imaginable of taxation rises.

On Wednesday, she warned she would not enactment taxation rises unless the "unnecessary vanity project" of HS2 was scrapped.

Simon Clarke, who was successful Ms Truss's cabinet, warned Mr Hunt not to "throw the babe retired with the bathwater and overcorrect" by imposing excessively galore taxation hikes.

"I anticipation they volition onslaught a equilibrium which leans overmuch much to spending reductions than taxation rises to equilibrium the books," helium told BBC Radio 4's PM programme.

But erstwhile enactment and pensions caput Stephen Crabb said helium feared spending cuts could pb to "real risks to the prime of nationalist services".

He told the BBC the authorities pension and benefits "absolutely" request to emergence with ostentation and that the Energy Price Guarantee needed to beryllium broader than conscionable helping pensioners and radical connected benefits.

He added that helium was assured Mr Hunt would marque "the close decisions".

Labour's shadiness chancellor Rachel Reeves said the UK needed "fairer choices for moving radical and a due program for growth".

"Britain has truthful overmuch imaginable but we are falling down connected the planetary stage, portion mortgages, nutrient and vigor costs each spell up and up," she said.