The Chancellor, Jeremy Hunt, made his 2023 Autumn Statement speech and the highlights are as follows
Economic Growth Measures:
- No recession anticipated, with the implementation of 110 measures.
- The Office of Budget Responsibilities (OBR) projects increased business investment, reduced inflation, and higher employment.
Business Investment Initiatives:
- Plans to boost business investment by £20 billion per year.
- £50 million funding for apprenticeships in engineering and other key growth sectors.
Planning and Development:
- Commitment to prompt service from local authorities for businesses regarding planning applications, with a “money-back” guarantee.
- Allocations include £110 million for nutrient mitigation schemes supporting new house building.
Foreign Direct Investment and Pension Reforms:
- Introduction of a concierge service for large international investors.
- Various pension fund reforms, including a consultation on consolidating pension pots.
Inflation and Cost of Living Measures:
- Inflation reduced to 4.6%, projected to decrease further to 2.8% by the end of 2024.
- Measures to alleviate the cost of living, such as increases to Universal Credit and local housing allowance.
Debt Reduction and Government Borrowing:
- OBR predicts a decrease in headline debt from 94% of GDP to 91% in 2024 and 92.8% by 2028-29.
- Government borrowing set to be reduced to 1.1% by 2028-29.
Defense and Support for Veterans:
- Commitment to meeting NATO’s 2% GDP spending on defense.
- Extension of National Insurance relief for employers of eligible veterans.
Public Sector and Resources:
- Increase in the size of the civil service to pre-pandemic levels.
- Additional resources for HMRC to ensure tax compliance, aiming to raise £5 billion.
Support for Innovative Industries:
- £500 million over two years for innovation centers.
- Initiatives for creative industries, including a call for evidence on TV tax credits.
Investment Zones and Freeports:
- Extension of investment zone and freeport reliefs to ten years.
- Establishment of three new investment zones in the West Midlands, East Midlands, and Greater Manchester, along with a second zone in Wales.
Levelling Up Initiatives:
- Allocation of funds for new projects, levelling up in Scotland, and a program in Northern Ireland.
Small Businesses and Self-Employed Reforms:
- Requirement for timely invoice payments for companies bidding for government contracts.
- Freezing the Small Business Multiplier for another year and extending the 75% business rates discount for retail, hospitality, and leisure.
Business Investment Incentives:
- Full expensing on qualifying expenditure on plant and machinery to be made permanent.
Benefits and Support for Individuals:
- Introduction of new free childcare from April.
- Reforms to the fit note process and work capability assessment, along with significant investments to aid individuals with health conditions in finding jobs.
Individual Tax Cuts:
- Cut in the main rate of employee NICs by 2% from January 6, 2024, resulting in substantial savings for average salaried individuals.
