2023 Autumn Statement

The 2023 Autumn Statement announced today, Wednesday 22^nd November, has outlined some important changes for workers in the UK. With the Office for Budget Responsibility (OBR) predicting an ‘overall’ UK growth this year of 0.6%, and an expected decrease in inflation from 5.6% in October 2023 to 2.8% by the end of 2024, the Chancellor has responded by making the following changes to enable this continued growth.

Individuals:

• For Britons over 21, the national living wage will rise to £11.44 per hour from April 2024.
• Those between the ages of 18-20, will see minimum pay increase to £8.60 per hour, and those aged between 16-17, and apprentices, should expect to see an increase in minimum wage to £6.40 an hour from April 2024
• From 6^th January 2024, national insurance rates are being cut by 2%. Employees will now pay 10% NI contributions on earnings between £12,570 and £50,270.
• An 8.5% increase in state pension payments will take place from April 2024.
• Working-age benefits will increase in line with September’s inflation rate of 6.7%.

Businesses:

• For the self-employed, Class 2 national insurance will be abolished, and Class 4 national insurance will be cut from 9% to 8% on earnings between £12,570 and £50,270.
• Employers’ national insurance rate will remained unchanged as we go into the new year.
• Integration of the R&D Expenditure Credit and SME schemes will make way for a change in tax relief that allows for loss-making companies to be taxed at 19% rather than the current 25%.
• The ‘full expensing’ tax relief, which allows 100% tax relief when purchasing qualifying plant and machinery investments, has been made permanent.
• The discount on business rates for the retail, hospitality and leisure sector, currently at 75%, will be extended for another 12 months (until March 2025)

Get in touch

If you have any questions regarding the details in the Chancellor’s statement, please call the office on 01392 241228 or email Misty at misty@griffinaccountancy.co.uk