on 22nd November 2023 Chancellor of the Exchequer Jeremy Hunt delivered his Autumn Statement, and outlook on the economy. Detailing the growth strategy and expectations, it is worth noting that the office for Budgets Responsibility has warned inflation will exceed the 2% target by 2025 a year later than previously forecast and halves the UK growth expectation. Interest rates are likely to remain higher for longer as a result of the changes.

National Insurance:

Class 2 National insurance abolished from 6th April 2024

Class 4 National insurance reducing to 8% from 6th April 2024

Employees National insurance (class 1) will reduce to 10%

Minimum Wage:

He also announced the largest ever cash increase to minimum wage.

Increasing from £10.42 to £11.44 this equates to roughly 10%. This is now going to apply to 21 year olds and 22 year olds rather than just 23+ for the first time. For those aged 18 – 20 the rate his risen 13% to £8.60 For those aged 16 – 17, and apprentices, the minimum pay will be £6.40 an increase of 17.5%.

This decision is facing back lash as small business may find it difficult to afford the soar in wages, this may force the price of goods and services to increase, fuelling more inflation.

 

State Pension:

The UK State Pension rise has been confirmed, and its 8.5%

Full Expensing:

The full expensing policy announced in 2023 Spring budget, allowing a 100% capital allowance for qualifying expenditure on the provision of new plant and machinery for the period 1st April 2023 to 31st March 2026 will be made permanent.

Other Updates include:

  • 5% mortgages extended by a further 18 months to at least mid 2025.
  • Income tax and national insurance thresholds remain frozen until 2028.
  • No changes to inheritance tax despite the rumours.
  • Universal credit claimants could face harsher sanctions if they fail to attend job fairs and interviews.