On 22 November 2023, Jeremy Hunt delivered the ‘Autumn Statement for Growth’. Against an improving economic backdrop, the Chancellor is keen to stimulate economic growth and highlighted 110 measures for businesses. In addition, there were significant statements relating to National Insurance changes and also the reform of work-related state benefits.
Below is a short report put together by our network, 2plan wealth management Ltd which summarises the changes announced. You can read it here on a desktop only or download it to view on desktop or mobile at your leisure.
Underneath the report, if you scroll down, is our own summary of the key announcements, if you are short on time!
Summary of key announcements:
- A cut in the main rate of class 1 employee NICs from 12% to 10% taking effect from as soon as 6 January 2024. There will be a reduction in the main rate of class 4 self-employed NICs from 9% to 8% from 6 April 2024 when class 2 NICs will be abolished.
- Making permanent the full expensing of investments by companies in qualifying plant and machinery so it will continue after April 2026.
- The continued freeze of the main income tax allowances and thresholds, the main national insurance contributions thresholds and the inheritance tax nil rate bands for 2024/25.
- A full triple lock increase of 8.5% for 2024/25 for state pensions and pension credit. But universal credit and most other benefits will increase by just 6.7% in line with CPI inflation to September 2023.
- Freedom for investors to make multiple subscriptions to ISAs of the same type each year from April 2024. Partial transfers of ISAs between providers will also be permitted.
- A 9.8% increase in the national living wage to £11.44 an hour.
If you have any questions about how the Autumn Statement affects you, don't hesitate to email or call us, we're happy to help.