Government's Autumn Budget Statement 2023

Jeremy Hunt has this week announced the government's financial update for the next year. Here are some key points from the Autumn statement:

The Economic Outlook

• The UK is expected to avoid recession in 2023!
• Growth of 1.8% is projected for next year.
• Inflation rate is forecast to come down to 2.9% by the end of the year.

?

Energy

• An extension of government subsidies limiting typical household energy bills to ï¿¡2,500 annually until the end of June.
• A ï¿¡200 million investment to equalise energy charges for prepayment meters with direct debit payments.
• A commitment to invest ï¿¡20 billion over the next two decades in low-carbon energy projects.
• The classification of nuclear energy as environmentally sustainable increases investment.

Welfare

The government has unveiled plans to support families and facilitate workforce reintegration. Key initiatives include:

?

• Changes for families on universal credit, receiving childcare support upfront, and an increase in the monthly per-child cap from ï¿¡646 to ï¿¡951.
• The expansion of 30 hours of free childcare for working parents in England to cover one and two-year-olds, starting in stages from April 2024.
• Incentive payments of ï¿¡600 for individuals becoming childminders, along with relaxed rules allowing them to care for more children.
• Stricter work search requirements and increased job support for lead child carers on universal credit.
• Implementation of a new fitness-to-work testing regime and a voluntary employment scheme called Universal Support for disabled individuals.
• Allocation of ï¿¡63 million for programmes encouraging retirees over 50 to return to work, including "returnships" and skills boot camps.
• Relaxation of immigration rules for five roles in the construction sector to address labour shortages.

Business

• Streamlining of international trading rules
• The introduction of tax breaks and benefits for 12 new Investment Zones across the UK, funded by ï¿¡80 million each over the next five years.
• Confirmation of the main rate of corporation tax increasing from 19% to 25% for taxable profits exceeding ï¿¡250,000.
• Companies can deduct investments in new machinery and technology to reduce taxable profits.

?

Pensions & Wages

• The removal of the cap on pension savings (currently ï¿¡1.07 million), before incurring additional taxes.
• An increase in the tax-free yearly allowance for pension pots from ï¿¡40,000 to ï¿¡60,000, breaking a nine-year freeze.

?

Additional measures of note:

• The extension of the freeze on fuel duty, keeping the 5p cut on petrol and diesel prices for another year.
• Alcohol taxes rising in line with inflation from August, accompanied by new reliefs for beer, cider, and wine sold in pubs.
• A 2% above inflation increase in tobacco tax and a 6% above inflation hike for hand-rolling tobacco.
• A commitment to raise defence spending by ï¿¡11 billion over the next five years.
• Allocation of ï¿¡200 million this year to assist local councils in England in repairing potholes.
• An extra ï¿¡10 million for charities in England dedicated to preventing suicide.
• An investment of ï¿¡900 million in a new supercomputer facility to support the UK's AI industry.

?