Autumn Statement 2023: What You Need To Know

WLB member BDO provides insights into yesterdays Autumn Statement 2023...

The Chancellor used his 2023 Autumn Statement to “go for growth”. He has used increased tax receipts from better-than-expected economic performance to fund a headline-grabbing 110 growth-promoting measures. Highlights include making permanent the ‘full expensing’ capital allowance, R&D tax credit reforms and business rates support for small businesses.

The Chancellor’s drive to ‘make work pay’ has taken the form of cuts to National Insurance for both the employed and self-employed and an increase in the National Living Wage.

The key announcements from the Chancellor’s statement are below, and our full expert analysis will be live on our website later today.

  • Class 1 employees NI cut by 2% from January
  • Class 2 NI abolished for the self-employed and Class 4 NI cut by 1% from April
  • National living wage to increase by 9.8% to £11.44 an hour
  • Capital Allowances full expensing made permanent
  • R&D tax credits schemes merged from April, lowering the rate for loss-making businesses in the merged scheme to 19%, and reducing the intensity threshold for loss making SMEs to 30%
  • Extending Investment Zones and Freeports incentives
  • Pensions triple lock – basic state pension increasing by 8.5% to £221.20 a week
  • 75% discount on business rates for retail, hospitality and leisure companies
  • Small businesses rates multiplier frozen for a year
  • Universal Credit and other benefits to increase by 6.7% from April
  • Alcohol duty frozen until 1 August 2024, but not tobacco duty.

A detailed analysis of the full announcement is now available at WLB member, BDO’s Budget Hub

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