The newly installed cabinet will make its first batch of major policy changes around mid-day tomorrow (November 17th 2022).
It comes after September's disastrous mini-budget, which led to market turmoil, devaluation of the pound and led to a hastening of the rise in interest rates. The country is also now officially in a recession.
Jeremy Hunt is now tasked with attempting to correct the course of the ship with a set of tax rises and spending cuts. Measures that will undoubtedly make the cost of living crisis worse for many.
So, what could tomorrow's statement unveil?
Hunt needs to plug the tens of billions gap in the UK's finances, for which alongside spending cuts he is planning widespread tax rises, which will see everyone paying more tax.
Tax rises that are rumoured to bring in an extra £25 billion will be through more use of fiscal drag (keeping allowances and bands below inflation levels for longer). Freezing until 2028 will 'drag' people into the higher rate band and 'pull' people at the lower end further out of tax free allowances.
The top rate of income tax, which a very low percentage of people pay in the UK, is likely to be increased from the current 45 percent and the threshold lowered from the current £150,000 in order to drag more people in to the bracket.
Council tax rises aimed aimed at the higher valuation bands are also rumoured for tomorrow. Local councils could increase rates by two percent further than previously allowed.
The energy support scheme has been paired down from the Truss/Kwarteng vision and will now come to an end in its current form in April 2023. Expect Hunt to announce what its successor will be, and it's likely to be a means-tested version - so for those already on government income support and pensioners only. This could be paired with a sharp windfall tax on energy companies.
We will be following along tomorrow and providing tools and calculators as usual here shortly after the statement.