Insights on the Budget

The Chancellor has addressed the chamber and set out the Government's spending plans. Find out what our experts make of the Budget for business and you.

The economic outlook: Barret Kupelian, senior economist at PwC

“We knew it wouldn’t be pretty, but the Autumn Statement demonstrates just how challenging the UK economic situation is, with the policies announced?marking a return to Treasury orthodoxy. The Chancellor today announced a large fiscal consolidation to the tune of ￡55 billion, but it is his specific choices about both the?form?and the?timing?of when his policies will be delivered that didn’t make his statement.?"

Read more from Barret here .

General tax and R&D: Jon Richardson, head of tax policy

“The Chancellor delivered on the promise that there would be few rabbits out of the hat on tax for this Statement. The bulk of extra revenue raised has come from freezing or reductions in allowances as well as the expected increase in the energy windfall tax.?There was some positive news on business rates but the net impact is the UK is now facing a record tax burden."

Read Jon's verdict on the UK’s tax competitiveness?here .

Rachel Moore, R&D tax partner

“The Chancellor has given?large companies a surprise and much welcomed bonus?by increasing the headline R&D credit rate from 13% to 20% resulting in a change in cash value from 10.5% to 15% (after taking account of the change in corporation tax rate).?However this is being more than paid for by a significant reduction in credits available for SMEs where the rate of relief for loss making companies nearly halves from 33% to 18.6%. This rebalancing of rates between the two schemes will result in more than a ￡1 billion of extra funds for the exchequer.??

“While it is widely recognised that there are issues in the SME market, this seems to be a blunt approach which penalises all claimants and does not tackle the underlying issues.??It is also a double whammy for SMEs operating globally?who will see claims reduced by the previously announced exclusion of overseas costs from claims. These changes will particularly impact the life sciences sector who depend heavily on R&D credits for funding.”

Business rates - Phil Vernon, head of ratings at PwC UK

“The Chancellor has correctly identified that one of the core issues with business rates is that the tax rate is too high and so freezing the rates multiplier in 2023/4 and the introduction of a package to reduce the burden will be welcomed by many businesses. However, these announcements will have to dovetail with the effects of the revaluation next year, and so properties facing an increase in their rateable value will still see an increase in their rates bills.“

Read more about how this affects larger retailers here .

Skills and education: Kevin Ellis, PwC UK Chair

"It’s good to see the Chancellor's focus on skills and education, and without lots of bitty new initiatives. Instead, the announcement that Sir Michael Barber will review the implementation of a skills reform programme is welcome. We need a big picture approach. Employers like PwC that rely on a strong pipeline of talent will be keen to support this important work, which links to other priorities including today’s renewed commitment to the Glasgow Climate Pact, and making the UK the 'world's next Silicon Valley'."

Energy Taxation - Colin Smith, Energy and Infrastructure Tax Partner?

“The Chancellor has made changes to the Energy Profits Levy, both by extending its duration to March 2028 and raising the rate from 25% to 35%. Today’s announcements increase the overall tax rate on the UK’s oil & gas producers to 75%. The cash benefit of the investment allowance remains broadly unchanged for most expenditure."

Read more about the measures announced that'll impact on energy tax here

Energy consumption reduction target - Zubin Randeria, ESG Leader

“The tricky balance between protecting tax revenues while encouraging sustainable behaviour was made clear in the Autumn Statement. On one hand, we heard a renewed commitment to?reduce greenhouse gas emissions by 68% by 2030 , on the other electric vehicles will be subject to road tax by 2025. With tax incentives expensive, reducing energy consumption will be key to realising our climate ambitions."

Read more of Zubin's statement here .

New National Living Wage and National Minimum Wage rates: John Harding, leader of PwC's Employment practice

“Following recommendations by the Low Pay Commission, the Chancellor’s announcement that the National Living Wage (NLW) will increase by 9.7% and the National Minimum Wage (NMW) will increase by similar levels from 1 April 2023,?will be welcomed by the 2 million employees who are expected to benefit."

Find out what it means for workers as well as the impact on employers here .

Triple Lock and Lifetime Annual Allowance - Raj Moody, global head of pensions

“The Chancellor's decision to retain the triple lock will ensure the state pension does not lose value in real terms. Based on September’s inflation rate of 10.1%, it will take the basic rate from ￡142 to ￡156 and the new state pension up from ￡185 to ￡204 a week. For the 12.5 million pensioners who fully rely on the state pension this will be welcome news.?

Personal Tax measures- Laura Morris, tax partner

“HMRC is expecting to collect additional revenues of 13bn by 2028 as a result of the personal tax measures announced today. Nearly 30% of this will come from the reduction in the 45% tax threshold with approximately 23% each coming from the reduction in the dividend allowance and vehicle excise duty for electric vehicles."

Alex Henderson, adds:

“The Chancellor has announced a wide range of seemingly technical and limited changes to the tax system to raise taxes but they will have significant practical consequences. Many more people will now find themselves caught by the new lower thresholds which could mean we see behavioural changes.

Read more and find out about the fiscal drag affecting individuals here .