Autumn Budget Statement 2023

With so much currently being discussed from the past few days since the Autumn Budget Statement was released, it is essential not to get lost in the numbers. So, we have put together a summary for all the information you need to know and what is likely to affect you-

TAX & PAYE:

  • National Insurance cuts from 12% to 10% from 6 January, affecting 27 million people

  • Class 2 National Insurance – paid by self-employed people earning more than £12,570 will be abolished from April

  • Class 4 National Insurance for self-employed – paid on profits between £12,570 and £50,270 will be cut from 9% to 8% from April

  • National Living Wage – to be increased from £10.42 to £11.44 an hour from April

  • New rates applying to 21 and 22-year-old workers, rather than just those 23 and over

  • Work Capability Assessment to be reformed to reflect availability of home working after Covid pandemic

  • £1.3bn funding over the next five years to help people with health conditions find jobs and a further £1.3bn to help those who have been unemployed for over a year – however, those who refuse to seek employment will lose benefits with the stricter ruling coming in play

  • State pension payments to increase by 8.5% from April, in line with average earnings

ECONOMY:

  • Independent Office for Budget Responsibility (OBR) forecasts that inflation – the rate prices are rising – will fall to 2.8% by the end of 2024, before reaching the Bank of England’s 2% target rate in 2025

  • Living standards not expected to return to pre-pandemic levels until 2027-28

BUSINESSES:

  • “Full expensing” tax break which allows companies to deduct spending on new machinery and equipment from profits will be made permanent

  • The 75% business rates discount for retail, hospitality and leisure firms in England extended for another year

DUTY:

  • All alcohol duty frozen until 1 August next year

  • Duty rate on tobacco products increases by 2% above RPI inflation; hand-rolling tobacco rises 12% above RPI

  • Fuel duty remains 52.95p per litre for petrol and diesel, after the chancellor announced a 5p per litre cut for 12 months in March and no mention was made this time

BENEFITS:

  • Universal credit and other working-age benefits in England and Wales to be increased by 6.7% in April

GENERAL:

  • Households living close to new pylons and transmission infrastructure will get up to £1,000 a year off energy bills for a decade

  • Local Housing Allowance rates will be unfrozen and increased to 30% of local rents from April

If you have concerns about your personal or business finance and how these changes will affect you, do not hesitate to call 01202 857 080 or email us info@enhance-professional.co.uk and we can help you understand better if any of the changes will affect you.