[22.11.23]

• 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

Castletons Accountants