The Chancellor of the Exchequer has used his Autumn Statement to announce tax cuts, tighter welfare rules and further measures aimed at getting more people into work.

The speech, delivered to the Commons today (November 22), is Chancellor Jeremy Hunt's main opportunity this year, outside the budget, to make tax and spending announcements.

Mr Hunt said the full package has 110 measures and he hopes it will boost growth.

Autumn statement at a glance: What measures did the Government announce?

  • National insurance

Employee national insurance will be cut from 12 per cent to 10 per cent from January 6.

Two million self-employed will benefit from the axing of class two national insurance and a cut to class four national insurance to 8 per cent, Mr Hunt said, which he said will save them about £350 a year.

But Mr Hunt froze thresholds for income tax, meaning that “fiscal drag” has meant that as people’s earnings have increased they have either been brought into tax for the first time or moved into higher bands.

  • Tighter welfare rules

Welfare recipients who do not get a job within 18 months will be forced to take on work experience under plans to get more people into employment.

Those who do not comply will have their benefits, including access to free prescriptions and legal aid, cut off.

  • Universal credit increase

The Government chose to raise universal credit by September’s 6.7 per cent rate of inflation, despite speculation it could have based the increase on October’s lower rate of 4.6 per cent to save money.

  • Business rates

The standard multiplier for rates on high-value properties will increase in line with inflation, while the small business multiplier will freeze for a further year.

The 75 per cent rates discount for retail, hospitality and leisure will all be extended for another year.

  • Pensions

Pensions will be increased by 8.5 per cent in line with average earnings to £221 a week from April, maintaining the so-called “triple-lock” policy whereby the amount paid is whichever is highest out of average earnings growth, Consumer Price Index (CPI) inflation or 2.5 per cent.

A £320 million plan to help unlock pension fund investment for technology and science schemes was also announced.

  • Minimum wage

The national living wage will rise by £1.02 to £11.44 from April, with the policy extended to cover workers aged 21 and over for the first time rather than 23 and over.

It means the lowest paid will receive a boost of £1,800 a year.

  • Full expensing

Full expensing – a scheme allowing companies to offset investment in machinery and equipment against their tax bills – will be made permanent, Mr Hunt said.

  • Alcohol and tobacco duty

Alcohol duty will be frozen until August 1 2024, meaning no increase in duty on beer, cider, wine or spirits, but duty on hand-rolling tobacco will rise by 10 per cent.

  • Local housing allowance

The three-year freeze on the local housing allowance will end, Mr Hunt said.

The Chancellor will increase the rate to 30 per cent of local market rents, which he says will give 1.6 million households an average of £800 of support next year.