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Autumn Statement – Key Takeaways
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Autumn Statement – Key Takeaways

By November 27, 2022No Comments

New Chancellor Jeremy Hunt has announced his financial update in the shape of an Autumn Statement. He positioned the statement as a plan to tackle the cost of living crisis and rebuild the UK economy. The Chancellor went on to say his priorities are public services, stability, and growth. He did warn there were many difficult decisions to make. Here we give a summary of his latest announcements.

Overview of Autumn Statement

Energy

  • Tax on companies that generate electricity to be 45% from January 2023
  • Windfall Tax for oil and gas companies to increase from 25% to 35%. Furthermore, it is to be extended to March 2028
  • Selected households to receive £900 support payments in 2023. They will be chosen by means-testing.
  • Energy cap for households to be extended beyond April 2023.
  • Pensioners will receive £300 payments per household.
  • People on disability benefits will receive £150.

Taxation & Wages

  • Councils in England will be able to increase council tax by 5%, instead of the current 3% rate.
  • Capital gains and dividend tax-free allowances are to be slashed in 2023.
  • The inheritance Tax threshold will remain the same until 2028, as will the National Insurance threshold. The same applies to Higher rate tax thresholds and Income Tax personal allowance.
  • The minimum wage is to increase to £10.42 for those over 23’s from April 2023.

Government Spending

  • NHS Budget to increase by £3.3 billion per year for 2023 and 2024.
  • Spending on schools to increase by £2.3 billion per year for the next two years.

Business

  • Business rate support of £13.6 billion over the next five years.
  • Plans to introduce an Online sales tax have been abolished.
  • Import taxes removed on 100’s of goods.

Economy

  • The overall size of the UK economy is set to decrease by 1.4% in 2023.
  • The Government has recognised the UK to now be in a recession.
  • Unemployment is set to rise to 4.9% in 2024.
  • Inflation is forecast to be 9.1% in 2022 and 7.4% in 2023.

For more information on the Autumn Statement go to gov.uk.

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