Title

FINANCE

Autumn Statement: Hunt shores up public finances

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.

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.

For more see: 

Investment zones ‘refocus' 

Hunt confirms council tax rises of 5%

£1bn extension to Household Support Fund

Northern Powerhouse Rail to be 'core' only

Social housing rent rise capped at 7%

More mayors announced

FINANCE

And those against?

By Cllr Steve Pitt | 23 July 2025

Cllr Steve Pitt makes a firm case for local authorities such as Portsmouth City Council to be left out of local government reorganisation.

FINANCE

Find finance fix

By Neil Merrick | 23 July 2025

MPs call for authorities to be given immediate powers to revalue properties ahead of full review of local government funding that could include scrapping cou...

FINANCE

Labour must bite the bullet on a property tax

By Ben Page | 22 July 2025

Ben Page says that for years, politicians have shied away from the challenge of council tax reform. 'But with a precipitous fall in Labour's approval ratings...

FINANCE

Born to run

By Ann McGauran | 16 July 2025

The Association of Directors of Children’s Services met last week in Manchester for its annual conference. Ann McGauran examines president Rachael Wardell’s ...