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At the heart of his package was the National Insurance cut for workers, a move favoured over an income tax cut as the Treasury believes it will have a bigger impact on growth.
As well as the two per cent cut to the main rate, the self-employed were helped out with the abolition of Class 2 National Insurance and a reduction in the Class 4 National Insurance rate to eight per cent.
Mr Hunt said: “If we want people to get up early in the morning, if we want people to work nights, if we want an economy where people go the extra mile and work hard, then we need to recognise that their hard work benefits all of us.”
The tax cut was bigger than speculated. The two per cent National Insurance cut will kick in from Jan 6 rather than the usual April date, prompting speculation that the Tories were considering an early election.
George Osborne, the former chancellor, said the package would “open the door” to an election next spring rather than in the autumn, when it is expected. Mr Hunt played down the idea, saying he had not discussed it with Rishi Sunak.
The Chancellor declared that his “Autumn Statement for growth” contained 110 measures that would help increase the UK’s stagnant economic growth.
He made “full expensing”, which lets firms claim back up to 25p for each £1 invested, permanent, declaring that the UK now had the “most competitive investment allowances of any large economy”.
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