Highlights from the Autumn Statement
Catherine Alexander
Partner
The Chancellor Jeremy Hunt delivered an Autumn Statement intended to bring stability, protect growth in the economy and continue to fund public services. This statement effects the household budgets of millions of people in the UK, we look at some of 110 measures announced today.
National insurance will be cut by 2 percentage points, from 12% to 10%, impacting about 27 million workers. Effective from the 6th January 2024.
For the self-employed, class 2 national Insurance contributions will be abolished. While class 4 national insurance contributions will be cut from 9% to 8% on earnings between £12,570 and £50,270.
Announcement of a 1-year extension of national insurance relief for employers of eligible veterans. This will provide £10m to support the Veterans' Places, Pathways and People programme.
The mimimum wage will rise from £10.42 to £11.44 per hour from April 2024, and will now be available to 21 and 22-year-olds for the first time. It was also announced that 18 to 20-year-olds will receive a £1.11 hourly rise to £8.60.
Benefits will rise with the September 2023 inflation figure of 6.7%. However, new rules around benefits for job seekers may see these benefits being cut if claimants do not find work within 18 months.
The state pension triple lock will be honored, with pension payments to rise by 8.5% to £221.20 a week, worth almost an extra £900 a year.
Alcohol duty will be frozen until August 2024, and the The 75% discount on business rates for firms in retail, hospitality and leisure will be extended for another year.
£4.5bn has been committed to green technology, with around £2bn set to go to the car industry.
Local authorities will be able to recover the full costs of major business planning applications if they meet guaranteed faster timelines. Should they fail to do so, the business will be refunded in full and have their planning application processed free of charge.
People living near planned pylons and electricity substations are set to receive up to £10,000 off their bills over 10 years.
The government will meet its NATO commitment of spending 2% of gross domestic product (GDP).
You can read the 2023 Autumn Statement in full here.
This article isn’t personal advice. If you’re not sure whether a course of action is right for you, ask for financial advice.
