Chancellor’s Autumn Statement


The Chancellor has today delivered to the House of Commons his Autumn Statement “110 measures to help grow the economy”.  The headlines include:
  • The Office for Budget Responsibility (OBR) forecast that inflation will fall to 2.8% by the end of 2024, before falling to the 2% target in 2025
  • The OBR also predicts that the economy will grow by 0.6% this year, 0.7% in 2024 and 1.4% in 2025
  • The main 12% Employee National Insurance rate will be reduced from 12% to 10%.  Legislation will be brought forward tomorrow, to implement this measure on 6th January 2024
  • Class 2 NIC for the self-employed will be abolished – saving £3.45 per week; and Class 4 NIC for the self-employed will be cut from 9% to 8%
  • On Business Rates, the Government will freeze the small business multiplier for a further year and the 75% discount on business rates up to £110,000 for retail, hospitality and leisure will also be extended for a further year
  • Full expensing for businesses is made permanent, so for every £1 that a business invests in IT, machinery and equipment can claim back 25p in Corporation Tax
  • As trailed yesterday, the National Living Wage will increase to £11.44 per hour from April 2024
  • From April 2024 businesses bidding for large Government contracts must demonstrate that they pay their suppliers within 55 days, reducing to 30 days
  • There will be a freeze on all alcohol duty until August 2024
As always, the devil is in the detail!  We will inform you of any further changes as we learn of them.

Castletons Accountants

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