The Autumn Statement 2023 – key announcements

Earlier today the Chancellor, Jeremy Hunt, delivered his Autumn statement to the House of Commons. 

What do the announcements mean for you and your wealth?

The economy

• The OBR forecasts that headline inflation will fall to 2.8% by the end of 2024, and to the Bank of England’s target of 2% in 2025.

Taxation and earnings

• The Office of Budget Responsibility (OBR) estimates the economy will grow by 0.6% this year and by 0.7% next year. They predict it will rise to 1.4% in 2025; then 1.9% in 2026; 2% in 2027 and 1.7% in 2028

• Employee National Insurance rate to be cut from 12% to 10% from 6 January 2024, affecting 27 million people. According to the Office of Budget Responsibility (OBR) this reduction could lead to an equivalent of an additional 94,000 full-time employees in the UK.

• Class 2 National Insurance (paid by the self-employed earning over £12,570) abolished from April 2024.

• Class 4 National Insurance paid on profits for the self-employed is reduced from 9% to 8% effective April 2024.

• The National Living wage to increase to £11.44 per hour from April.

Benefits and pensions

• The Triple lock remains in place with the State pension to increase in line with average earnings by 8.5%.

• A consultation on whether employees can have the right to pick a pension scheme for their employer to pay into.

Business

• The business rates discount of 75% for retail, hospitality and leisure firms is extended for another year.

• Capital Allowances (Fully expensing) on machinery and equipment made permanent.

• £500m over the next 2 years to fund artificial intelligence innovation centres.

Other changes

• All alcohol duty is frozen until 1 August 2024.

• Duty on tobacco increases by 2% above RPI

If you would like to discuss how the announcements in the Autumn Statement may affect you and your financial position, please speak to our Financial Planning Team on 01223 233331.

Disclaimer 

Opinions constitute our judgment as of this date and are subject to change without warning.  The value of investments, and the income from them, can go down as well as up, and you may not recover the amount of your original investment.

The information in this article is not intended as an offer or solicitation to buy or sell securities or any other investment, nor does it constitute a personal recommendation.

The information contained within this blog is based on our understanding of legislation, whether proposed or in force, and market practice at the time of writing.  Levels, bases and reliefs from taxation may be subject to change.

The Financial Conduct Authority do not regulate tax planning.