Hunt to outline national insurance cut in Budget – live

Jeremy Hunt has said that the UK must bring down borrowing “and today’s figures confirm that is happening”.

Ahead of his autumn statement, the OBR forecasted that headline debt would rise to above 100 per cent of GDP. But “today they say it will fall in every year to just 94 per cent” by 2029, he said – prompting incredulous cries of “just” from the opposite benches.

He added: “Our underlying debt is therefore on track to fall as a share of GDP, meeting our fiscal rule. And we continue to have second lowest level of debt in the G7.”

The chancellor has announced that the fund aimed at supporting vulnerable households with the cost of living will be extended a further six months.

Jeremy Hunt told the Commons: “Next the Household Support Fund. It was set up on a temporary basis and due to conclude at the end of this month.”

He said that “now is not the time to stop the targeted help it offers” and added “we will therefore continue it at current levels for another six months.”

Jeremy Hunt has handed a Budget boost to motorists as the chancellor opted to keep fuel duty frozen for the 14th year in a row.

He said: “The shadow chancellor complained about the freeze on fuel duty and Labour has opposed it at every opportunity. The Labour Mayor of London wants to punish motorists even more with his Ulez plans. But lots of families and sole traders depend on their car. If I did nothing fuel duty would increase by 13% this month.”

Mr Hunt added: “I have as a result decided to maintain the 5p cut and freeze fuel duty for a further 12 months. This will save the average car driver £50 next year and bring total savings since the 5p cut was introduced to around £250.

“Taken together with the alcohol duty freeze, this decision also reduces headline inflation by 0.2 percentage points in 2024-25 allowing us to make faster progress towards the Bank of England’s 2% target.”

Jeremy Hunt has extended the alcohol duty freeze until February 2025, which the chancellor said would benefit 38,000 pubs.

The Chancellor told the Commons: “In the autumn statement I froze alcohol duty until August of this year. Without any action today, it would have been due to rise by 3%.”

He said he had listened to representations from MPs about the tax, adding: “So today I have decided to extend the alcohol duty freeze until February 2025. This benefits 38,000 pubs all across the UK – and on top of the £13,000 saving a typical pub will get from the 75% business rates discount I announced in the autumn.

“We value our hospitality industry and we are backing the great British pub.”

The chancellor has announced measures for households falling into debt.

Nearly one million households on universal credit take out budgeting advance loans to pay for essentials, Mr Hunt said, announcing an extension on the payment period for new loans from 12 months to 24 months.

The best way to resolve debt for many people is through a debt relief order, which costs £90. Mr Hunt said he would relieve pressure on around 40,000 families every year by abolishing the £90 charge.

The household support fund, which was due to conclude earlier this month, will also be continued at current levels for another six months, the chancellor said.

Jeremy Hunt has said that the latest OBR forecasts show inflation will fall below the 2 per cent target in just a few months time – nearly a whole year earlier than forecast in the autumn statement.

“That didnt happen by accident,” says the chancellor, insisting the Tories will “always put sound money first” – drawing some laughter from the opposite benches.

Jeremy Hunt says the government can now help families not just with temporary cost of living support but with permanent cuts in taxation.

We do this to give much needed help in challenging times, he says – and because “lower taxes mean higher growth”, which means “more funding for our precious public services”.

The Speaker interrupts jeering on the benches to point out that “the chancellor has hardly said anything”.

Higher living standards for all “cannot come from unlimited migration, it can only come from building a high-wage, high-skill economy”, the chancellor says, insisting that the policies he will announce today will mean more investment, more jobs, better public services and lower taxes in a Budget for long-term growth”.

Chancellor Jeremy Hunt is now on his feet in the House of Commons.

He starts today by remembering the Muslims who died in two World Wars defending freedom and democracy, and is allocating £1m towards building a memorial to honour them, called for by Sajid Javid.

Labour’s Angela Eagle has asked Rishi Sunak which part of his economic legacy he is most proud of – “presiding over the highest tax burden since the Second World War” or delivering the “slowest real wage growth since the Napoleonic War?”

Mr Sunak replied that it was saving 10 million jobs with the pandemic furlough scheme.