Autumn Statement 2023 - Cavendish Briefing

This afternoon, the Chancellor of the Exchequer delivered his Autumn Statement, setting out a package of measures designed to boost growth in the economy.

In what was billed as an “Autumn Statement for Growth”, the Government highlighted five areas of focus:

• Reducing debt
• Cutting tax and rewarding hard work
• Backing British business
• Building domestic and sustainable energy
• Delivering world-class education

As expected, the Treasury took steps to respond to the political pressure for tax cuts, with a 2 percentage point cut in the main employee rate of National Insurance that will benefit more than 27 million people. Significant tax and financial support was also announced for businesses.

The headline announcements from the Autumn Statement are detailed below:

• National Insurance: A cut to the main employee rate of National Insurance from 12% to 10%, benefiting 27m people
• Business tax cuts: ‘Full-expensing’ will be extended through to 2029-29, a freeze to the small business multiplier on business rates, and an extension of business rates relief for retail, hospitality, and leisure.
• Financial support for business: New funding to support life sciences, advanced manufacturing, AI innovation, foreign direct investment, and apprenticeships.
• National Living Wage: Is raised from £10.42 to £11.44 per hour from April.
• Benefits: To address the cost of living, Universal Credit and other benefits will be uprated by 6.7%, an increase of £470 for 5.5m households in 2024.
• Pensions: The state pension is raised by 8.5%, in line with total average earnings.
• Cost of living: Local Housing Allowance will be raised to the 30th percentile of local market rents.