Autumn Statement 2023: Chancellor Jeremy Hunt’s Key Proposals Summarized
Staff Writer, Halal Incorp
Here’s a concise overview of the major highlights from Chancellor Jeremy Hunt’s autumn statement, presenting a comprehensive package aimed at fostering a 110-measure growth strategy for the UK economy, inclusive of business tax reductions.
Autumn Statement 2023
- Economic Outlook:
- The Office for Budget Responsibility (OBR) foresees an average inflation rate of 2.8% by the end of the next year and 2% by 2025.
- Predicted overall UK growth in 2023 is 0.6%, with an anticipated increase to 0.7% in 2024 and a doubling to 1.4% in 2025.
- Financial Metrics:
- Debt is expected to rise as a percentage of GDP, reaching 91.6% in the upcoming year and 92.7% in the 2024-2025 financial year.
- Minimum Wage Adjustments:
- The national living wage, applicable to those aged 21 and above, will rise to £11.44 per hour from April, marking a £1.02 increase.
- Incremental increases are also announced for those aged 18 to 20 (£8.60 per hour) and 16 to 17, and apprentices (£6.40 per hour).
- Benefits and Housing Support:
- Benefits will rise by 6.7%, aligned with the September inflation rate, effective from April.
- The local housing allowance rate will be increased to the 30th percentile of local market rents, providing an average of £800 support to 1.6 million households.
- Employment Initiatives:
- The Back to Work Plan aims to bring 1.1 million people into employment, with benefits tied to job-seeking efforts.
- Jobseekers not actively looking for work may lose benefits such as free medicines and legal aid.
- Tax Reforms:
- Headline national insurance rates for employees will be reduced by 2 percentage points, affecting approximately 27 million workers.
- For the self-employed, reforms include abolishing Class 2 national insurance and reducing Class 4 national insurance from 9% to 8%.
- Pensions and Investments:
- State pension payments will rise by 8.5% to £221.20 a week, honoring the triple lock.
- A pension pot for life scheme will be established, allowing workers to nominate a fund that moves with them throughout their career.
- Innovation and Business Support:
- £500 million will be invested in the next two years to boost innovation centers, making strides toward becoming an AI powerhouse.
- Simplified tax relief for research and development, including a reduction in the tax rate for loss-making companies.
- Business and Industry Incentives:
- The 75% discount on business rates for retail, hospitality, and leisure will be extended for another year.
- Alcohol duty will be frozen until August.
- Financial incentives for freeports and investment zones extended to 10 years.
- Other Measures:
- Financial support pledged to combat antisemitism in schools and universities.
- Accelerated processing of planning applications for businesses, with a “prompt service or your money back” promise.
- Compensation for those living near new pylons and electricity substations.
- Commitment to meet NATO’s defense spending target and extend national insurance relief for eligible veteran employers.