After three weeks delay, on 17 November 2022, Chancellor Jeremy Hunt produced the Autumn Statement, where he outlined three priorities of stability, growth and public services as the focal points of his Autumn Statement. Hunt promised to tackle the cost of living crisis and rebuild the UK economy. The Chancellor detailed plans to save £55bn over the next few years through tax rises and spending cuts.

Below is the summary of the key measures within the Autumn Statement:

• From April next year, the National Living Wage will be increased from £9.50 an hour for those over-23s to £10.42.
• State pension payments and means-tested and disability benefits to increase by 10.1%
• A 45% rate will apply to income above £125,140 in 2023/24, meaning more people will be in the higher rate tax band
• The energy price guarantee will be kept for further 12 months but at a higher rate of £3,000 on average
• A new one-off payment of £900 to households on means-tested benefits and £300 to pensioner households, and £150 for individuals on disability benefits.
• An additional £1bn funding to enable a further extension to the household support fund
• Income tax personal allowance and higher rate thresholds are frozen for a further two years, until April 2028
• Main National Insurance and inheritance tax thresholds are also frozen for a further two years, until April 2028
• There will be a cut to dividend allowance and capital gains tax allowance
• UK's inflation rate is predicted to be 9.1% this year and 7.4% next year
• Unemployment expected to rise from 3.6% to 4.9% in 2024
• Increase in school budget by £2.3bn per annum from next year
• An extra £3.3bn to NHS funding each year for two years
• Increase to social care spending by up to £4.7bn
• Over £13.6bn support over the next five years to help firms with business rates
• Windfall taxes will increase from 25% to 35% and extend until March 2028
• A new 45% tax on electricity producers
• Contracts to progress the Sizewell C nuclear plant will be signed in the coming weeks.
• Electric cars, vans and motorcycles to pay road taxes from April 2025
• There is a predicted economic growth of 1.3% for 2024, 2.6% for 2025 and 2.7% for 2026

If you would like more advice regarding the Autumn Statement and how it will affect you or your business, please contact us at info@gkaccountingservices.com or call us on 01269 508 081, where we will be more than happy to answer any of your questions.