The Autumn Statement 2023, delivered by Chancellor Jeremy Hunt on November 22, outlines significant tax and spending plans set to impact businesses and individuals across the UK. Here are the essential points:
- Tax Measures:
- A notable 2% reduction in employees’ National Insurance contributions, effective from January 6, 2024.
- Self-employed individuals will see Class 2 National Insurance contributions abolished and Class 4 contributions reduced.
- Extension of tax reliefs and financial incentives in UK freeports and investment zones.
- Permanent implementation of the full expensing capital allowances scheme.
- Introduction of a simplified R&D tax relief system from April 2024.
- Wage and Pension Adjustments:
- The National Living Wage will rise by 9.8%, and the State Pension will see an 8.5% increase.
- A consultation on pension funds aims to simplify pension management for workers.
- Business and Economic Development:
- Launch of four new investment zones in key regions.
- Significant investment in strategic manufacturing, aerospace, life sciences, and green industries.
- A £500 million commitment to establish the UK as an ‘AI powerhouse’.
- Additional Measures:
- Increases in Universal Credit and other benefits.
- Consultation for a new law to facilitate property conversions without altering exteriors.
These measures collectively aim to boost the economy, enhance business growth, and provide relief to workers and the self-employed. It’s crucial for businesses and individuals to understand how these changes could affect their financial planning and operations.
For detailed financial advice tailored to your specific needs, especially in light of these new changes, don’t hesitate to contact Greystone Advisory.
This summary is provided for informational purposes only and should not be considered as financial advice. For personalized guidance, please consult with our experts.
