UK

Key announcements from chancellor’s autumn statement at a glance

All the main announcements as chancellor Jeremy Hunt reveals his autumn statement to MPs:

• He told the Commons in his opening remarks: “In the face of unprecedented global headwinds, families, pensioners, businesses, teachers, nurses and many others are worried about the future. So today we deliver a plan to tackle the cost-of-living crisis and rebuild our economy… “Stability, growth and public services” are three priorities.

• Government and Bank of England to “work in lock-step” in battle against inflation. No change to Bank’s remit.

• Office for Budget Responsibility (OBR) forecasts borrowing in this financial year of £177bn, £140bn in 2023/4.
OBR sees UK growth in 2022 of 4.2% but now in recession. Contraction of 1.4% in 2023.
OBR sees a rise in unemployment from 3.6% today to 4.9% in 2024.
OBR sees average inflation rate this year of 9.1% and 7.4% next year.

• Reduces the threshold at which the 45p rate becomes payable from £150,000 to £125,140.

• Maintains freeze on the income tax personal allowance, higher rate threshold, main national insurance thresholds and the inheritance tax thresholds for a further two years – to April 2028.

• Dividend allowance will be cut from £2,000 to £1,000 next year and then to £500 from April 2024.

More from Business

• The Annual Exempt Amount for capital gains tax will be cut from £12,300 to £6,000 next year and then to £3,000 from April 2024.

• From April 2025, electric vehicles will no longer be exempt from Vehicle Excise Duty.

• Stamp duty cuts announced in the mini-budget will remain in place but only until 31st March 2025.

• While the Employers National Insurance Contributions threshold is frozen until April 2028, the Employment Allowance will be retained at its new, higher level of £5,000 until March 2026.

• R&D tax relief for SMEs deduction rate cut to 86% and the credit rate to 10% but increase the rate of the separate R&D expenditure credit from 13% to 20%.

• Windfall tax on major oil and gas producers raised to 35% from 25% and 45% Energy Profits Levy rate to be imposed on electricity generators to raise £14bn next year.

• Nearly two thirds of properties will not pay a penny more in business rates next year. Says thousands of pubs, restaurants and small high street shops will benefit to tune of £14bn over five years.

• Over 600,000 more people on Universal Credit to be forced to meet with a work coach in a bid to get more into workforce and better-paid jobs.

• To invest an extra £2.3bn per year in our schools.

• Adult social care secures additional grant funding of £1bn next year and £1.7bn the year after. Says this means an increase in funding available for the social care sector of up to £2.8bn and £4.7bn respectively.

• Increases the NHS budget, in each of the next two years, by an extra £3.3bn.

• An extra £1.5bn for the Scottish governemnt, £1.2bn for the Welsh government and £650m for the Northern Ireland Executive.

• Government will proceed with the Sizewell C new nuclear plant with £700m investment by taxpayer to bolster energy security and diversify further from harmful carbon.
New funding, from 2025, of a further £6bn in energy efficiency.

Articles You May Like

A globally critical chip firm is driving a wedge between the U.S. and Netherlands over China tech policy
FTX founder Sam Bankman-Fried agrees to testify at U.S. House hearing on Tuesday
Ukraine War: Moscow and US suggest talks to end war are possible
Troops training at Heathrow and Gatwick airports ahead of Border Force strikes
Era of cheap supermarket fuel has ‘gone’ as chains battle rising costs