Yesterday, Jeremy Hunt delivered the 2023 Autumn Statement, his third fiscal announcement as Chancellor of the Exchequer. Following the OBR’s recent confirmation that inflation has halved since January, the statement featured a stronger focus on tax cuts and allowances than expected – not that we’re complaining!
The motif ‘Backing British Businesses’ featured prominently throughout the statement, with 110 measures for business announced, including imminent tax cuts and allowances. We were pleased to see the value of the UK’s SMEs acknowledged, and how business investment can funnel money back into the economy; create jobs across multiple sectors; and bring business to UK manufacturers and suppliers.
As expected, Full Expensing was made permanent, helping business owners reduce the costs of investing in plant and machinery for their business, hopefully encouraging UK investment. A £4.5 billion support package was also announced for UK manufacturing, aiming to boost jobs across the UK, safeguard energy security, build health resilience and prepare for a green future.
Several industry-specific measures were also announced, which aim to support businesses recovering from inflation, allowing them to continue providing valuable services to the nation. The HGV levy and road tax will be frozen for 2024/25 to protect the vital journeys they make across the UK, delivering medical supplies and food. To support pubs and the alcohol sector, alcohol duty has been frozen until August 2024 – this will help to encourage reinvestment into their businesses. Further support has been provided for the UK high street, by extending the 75% business rates relief for retail, hospitality and leisure until 2025. With this, the government also committed to freezing the small business multiplier.
There will be a few changes to your company’s payroll shortly, including the increased National Living Wage of £11.44 and the reduced National Insurance rates of 10%. If you have any questions about this, please don’t hesitate to get in touch with the team!
What does the Autumn Statement mean for you and your business? Find out more in our full summary of the announcement, now available to download!