Client
Portal

Main announcements from Chancellor Jeremy Hunts Autumn Statement 2023 at a glance

Back to News & Views

110 measures aimed at stimulating growth in the UK's economy

Chancellor of the Exchequer, Jeremy Hunt, announced during the Autumn Statement 2023 what he said was 'a comprehensive package of 110 measures aimed at stimulating growth in the UK's economy’. 

He acknowledged the announcement comes amid a challenging economic climate. Still, Mr Hunt said he remained optimistic, pointing out that the UK's economy has been more resilient than expected this year. Our Guide to Autumn Statement 2023 summarises the key points announced.

Economy

Growth

  • The independent Office for Budget Responsibility (OBR) expects the economy to grow by 0.6% this year and 0.7% next year, rising to 1.4% in 2025, then 1.9% in 2026, 2% in 2027 and 1.7% in 2028

Borrowing & Debt

  • Underlying debt is forecast to be 91.6% of GDP next year, 92.7% in 2024/25 and 93.2% in 2026/27 before declining to 92.8% in 2028/29
  • Borrowing forecast to fall from 4.5% of GDP in 2023/24 to 3% in 2024/25, 2.7% in 2025/26, 2.3% in 2026/27, 1.6% in 2027/28 and 1.1% in 2028/29

Inflation

  • Headline inflation forecast set to fall to 2.8% by the end of 2024 and to the Bank of England's 2% target rate in 2025

Taxation and Wages

  • The main rate of National Insurance is cut from 12% to 10% from 6 January 2024
  • Class 2 National Insurance – paid by self-employed people earning more than £12,570 – abolished from 6 April 2024
  • Class 4 National Insurance for self-employed – paid on profits between £12,570 and £50,270 – cut from 9% to 8% from 6 April 2024
  • Legal minimum wage – known officially as the National Living Wage – to increase from £10.42 to £11.44 an hour from 6 April 2024
  • New rate applies to 21 and 22-year-old workers for the first time rather than just those 23 and over
  • Income Tax personal allowance remains unchanged and frozen until 2028 (applies to England, Wales and Northern Ireland)

Pensions & Benefits 

  • State Pension payments to increase by 8.5% from 6 April 2024, in line with average earnings
  • Consultation on whether savers get the right to choose the pension scheme their employer pays into, allowing them to possibly have one pension pot for life
  • Universal Credit and other working-age benefits to increase by 6.7% from 6 April 2024, in line with September's inflation rate
  • Local Housing Allowance rates – which determine the level of housing benefit and Universal Credit people receive to pay rent – to be unfrozen and increased to 30% of local rents
  • Work Capability Assessment to be reformed to reflect the availability of home working after the COVID pandemic
  • Funding of £1.3bn over the next five years to help people with health conditions find jobs
  • Further £1.3bn to help people who have been unemployed for over a year
  • Claimants deemed able to work but who refuse to seek employment lose access to their benefits and extras like free prescriptions

Business & Infrastructure

  • ‘Full expensing’ tax break – allowing companies to deduct spending on new machinery and equipment from profits – made permanent
  • There has been no further change to the rates of Corporation Tax
  • Some £500m over the next two years to fund AI innovation centres
  • The 75% business rates discount for retail, hospitality and leisure firms extended for another year
  • Funding of £4.5bn to attract investment to strategic manufacturing sectors, including green energy, aerospace, life sciences and zero-emission vehicles
  • Households living close to new pylons and transmission infrastructure to get up to £1,000 a year off energy bills for a decade

Other measures

  • Alcohol duty: the government will freeze alcohol duties until 1 August 2024
  • Duty rates on all tobacco products increase by RPI +2%
  • To reduce the gap with cigarette duty, the rate on hand-rolling tobacco increased by RPI + 12% this year
  • Planning applications to be granted for businesses to allow local authorities to recover the full costs of major business planning applications if they meet guaranteed faster timelines
  • If they fail, businesses will be refunded in full and have their planning application processed free of charge
  • The government will meet its NATO commitment of spending 2% of gross domestic product (GDP), the measure of everything produced in the economy, on defence
  • Extension of National Insurance relief for employers of eligible veterans for another year to support the Veterans' Places, Pathways and People programme
  • Scope of the current VAT zero rate relief on women’s sanitary products extended to include reusable period underwear from 1 January 2024

Autumn Statement 2023: How will my finances and business be affected?

If you want to discuss how the announced measures could affect your finances or business, please contact us for more information. We look forward to hearing from you.

THIS ARTICLE DOES NOT CONSTITUTE TAX OR LEGAL ADVICE AND SHOULD NOT BE RELIED UPON AS SUCH. TAX TREATMENT DEPENDS ON THE INDIVIDUAL CIRCUMSTANCES OF EACH CLIENT AND MAY BE SUBJECT TO CHANGE IN THE FUTURE. FOR GUIDANCE, SEEK PROFESSIONAL ADVICE.

Book your FREE, no obligation discussion today. Schedule Appointment

Sign Up to our mailing list - Receive regular news, tips and financial commentary from the Gemini Team.

Latest News

  • In the realm of financial well-being, an old adage rings particularly true: ‘Prevention is better than cure.’ An effective financial plan acts as your protective shield, specially designed to weather any economic storm that may come your way. It offers comfort and control, ensuring that you are steering the ship of your finances, not vice versa. [...]

  • Money, a subject often seen as taboo within family conversations, is surprisingly more entwined in your family’s affairs than you might think. Engaging in frank discussions about financial matters can create opportunities for strategic financial planning, potentially enhancing your family’s financial future. The sooner these discussions begin, the better the chances of safeguarding your legacy and strengthening your children’s fiscal stability. Let’s delve into some potential discussion points. [...]

  • The chasm between generations regarding retirement prospects is glaringly apparent, as 78% of individuals believe their predecessors had more favourable pension plans or brighter retirement futures. According to recent research, this data highlights a stark revelation that underscores the urgency for younger generations to access improved financial education[1]. [...]

  • Like health, the more meticulously you manage your wealth, the longer it lasts. A growth strategy seeks to amplify your wealth over the long haul, opening up a world of possibilities for you. Whether you dream of a large retirement fund, a holiday home, or providing top-tier education for your children or grandchildren, a growth portfolio could be your ticket. [...]

  • The gender pension gap is an issue that extends beyond just the disparity in earnings between men and women. It also encompasses other aspects such as financial confidence, engagement with financial products, and socio-economic factors. [...]

  • As we navigate life’s journey, retirement presents both a dream and a challenge. It’s the stage where we finally enjoy the fruits of our labour, a time for relaxation, exploration, and personal growth. But the question that often looms is how can we ensure a steady income stream that keeps pace with our aspirations and maintains our lifestyle? Enter the world of annuities. [...]

  • Understanding your financial situation is crucial to achieving both short-term and long-term objectives. With a detailed insight into your finances, you can maximise your assets and devise a robust plan for wealth accumulation and protection. [...]

  • For many individuals, their pension investments are allocated to funds. These could be funds selected by their pension provider or ones they’ve chosen independently. Traditionally, retirement planning has centred around investing in shares-based funds during one’s younger years. As retirement approaches, the strategy typically shifts to de-risking the portfolio, diversifying into bonds, cash, and shares. [...]

  • Retirement is often seen as the golden phase of life, a period earmarked for relaxation and pursuing personal interests. However, a recent study has pointed towards an increasing trend of ‘retirement anxiety’, especially among individuals aged over 40[1]. [...]

  • 3 weeks ago

    Did you know as many as 1 in 20 people could have a pension they didn’t think they had? Could that be you? It’s estimated £26.6 billion is currently trapped in forgotten pensions, averaging about £9,500 each[1]. With most individuals juggling multiple jobs throughout their lifetime, it's no wonder that some of these pensions fall through the cracks. Whether due to a change of address or simple forgetfulness, these lost pensions could be the key to a more comfortable retirement. [...]

  • Investing in an Individual Savings Account (ISA) is a tax-efficient, flexible method for future planning. One of the most attractive features of an ISA is its tax benefits – it's immune to both Income Tax and Capital Gains Tax on any growth within the fund or on income you withdraw. This makes contributing to an ISA an intelligent decision for those looking to grow their wealth while minimising tax liabilities. However, remember that if you don't utilise your annual ISA allowance before the end of this tax year on 5 April 2024, it will be lost, resetting on 6 April. Maximising your ISA allowance is crucial to reap the full benefits of this savings tool. [...]

  • Have you recently evaluated your personal tax situation? Is your tax structure optimised for efficiency? As we approach the end of the tax year on 5 April 2024, it presents an ideal opportunity to assess and leverage the various allowances and reliefs available to enhance your tax profile. Allocating time for this review can provide valuable insight into potential opportunities for you and your family. The vast scope and complexity of the UK tax system may seem daunting. However, navigating it with careful planning can lead to significant financial benefits. Understanding your tax affairs is key to maximising your wealth and ensuring your financial future. [...]

Gemini Wealth Management Ltd is Authorised and regulated by The Financial Conduct Authority Registered in England & Wales No. 5919877 Registered Office: Gemini House, 71 Park Road, Sutton Coldfield, West Midlands B73 6BT The Financial Conduct Authority does not regulate tax and trust advice, will writing and some forms of buy to let mortgages. The guidance and/or advice contained in this website is subject to regulatory regime and is therefore restricted to those based in the UK.

Website by Mellow Marsh Software
© Gemini Wealth Management Ltd
Important Documents | Cookie Policy