The Autumn Statement 2023

The Autumn Statement 2023

The Chancellor of the Exchequer delivered his Autumn Statement 2023 to Parliament on Wednesday 22^nd November 2023.

The following measures are to be put in place:

• From 1^st April 2024 the national living wage will increase by 9.8% to £11.44 an hour and the age threshold will be lowered from 23 to 21 year olds.
• From 1^st April 2024 the national minimum wage will increase to £8.60 per hour for 16-17 year olds and £6.40 for apprentices.
• From 6^th January 2024 employee National Insurance Contributions (NICs) will be cut back from 12% to 10%.
• Class 2 NICs are to be completely abolished from 6^th April 2024.
• Class 4 NICs are to be cut from 9% to 8% from 6^th April 2024.
• In April 2024 the state pension is also set to increase by 8.5%.
• Full expensing of capital expenditure companies will be made permanent so companies can claim 100% capital allowances on qualifying main rate plant and machinery investments.
• A £4.3 billion business rates support package will be introduced over the next 5 years. This includes a freeze to the small business multiplier and a rollover of 75% retail, leisure and hospitality relief.
• The current R&D expenditure credit and the small to medium sized enterprise scheme (SME) will be merged from 1^st April 2024.
• The tax on loss making companies within this merged scheme will be lowered to 19% from 25%. The additional support threshold for R&D intensive loss-making SMEs will be lowered to 30% from 40%.
• An extension of the climate change agreement scheme will be put into place (a scheme providing for reduced rates of climate change levy). This will give energy intensive businesses a tax relief of around £300 million a year until 2033.
• Freeport tax reliefs and the investment zones programme will be extended from 5 to 10 years.
• Greater Manchester, East Midlands and West Midlands will see the establishment of three advanced manufacturing investment zones.
• The duty on alcohol will be frozen until 1^st August 2024, but from 22^nd November 2023 tobacco duty will increase by RPI plus 2% , and duty on hand-rolling tobacco will increase by RPI plus 12%.