In the Autumn Statement 2023, the Chancellor, Jeremy Hunt referenced five focus areas – reducing debt, cutting tax and rewarding hard work, backing British business, building domestic and sustainable energy, and delivering world class education – and we have compiled an overview of the key takeaways and announcements.
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Responding to: The Autumn Statement 2023
Vehicle tax
- VED for HGVs and HGV Levy frozen at 2023-24 rates for 2024-25.
- VED rates for cars, vans and motorcycles increase in line with RPI from 1 April 2024.
- Van Benefit Charge and the Car & Van Fuel Benefit Charges frozen at 2023-24 rates for 2024-25.
Taxation and pension
- Main rate of National Insurance for those earning between £12,570 and £50,268 cut from 12% to 10% from 6th January 2024. This equates to an annual saving of £450 per year for an average earner.
- “Full expensing” for businesses will become permanent, and businesses will be able to obtain 100% capital allowances on qualifying assets. This excludes cars and leased assets.
- There is a freeze on all alcohol duty until August 2024.
- Pensions Triple Lock and Pension Credit will be protected and rise by 8.5%, worth £900 per year, from April 2024.
- From April 2024, those who are self-employed, Class 2 National Insurance will been abolished from April 2024, and Class 4 NI will be cut from 9% to 8%.
- The duty rate for hand-rolling tobacco will rise by an additional 10%, to 12% above RPI inflation.
Support to work
- £50m funding over two years to boost training in growth sectors and address barriers to entry in high-value apprenticeships.
- £500m committed to funding supercomputing centres and AI innovation.
- Universal Credit to increase by 6.7%, worth £475 per year for 5.5 million households.
- The National Living Wage will increase to £11.44 per hour from April 2024.
- Small business rates multiplier frozen for a further year.
- £250m investment to enable UK pension funds to back the UK’s most innovative science and technology companies.
Communities and wellbeing
- An additional £10m will be spent to support veterans through the Veterans’ Places, Pathways and People programme.
- People living closest to new pylons and electricity substations will receive up to £10,000 off their bills over 10 years.
- The Mortgage Guarantee Scheme is set to be extended until June 2025.
- Increase in the local housing allowance, which has been frozen since 2020.
