The chancellor delivered his Autumn Statement in the House of Commons today, with the key priorities of stability, growth, and public services. The statement outlined the Chancellor’s plan to tackle the cost-of-living crisis and rebuild our economy and contained measures to do this.
Jeremy Hunt said in the face of “unprecedented global headwinds, families, pensioners, businesses, teachers, nurses and many others are worried about the future.”
Jeremy Hunt has confirmed that there will be spending squeezes on government departments. He says that they will have to take “tough decisions to deal with inflationary pressures in the next two years”.
He added that overall spending on public services will rise, after accounting for inflation, for the next five years.
The health budget will be protected though. The Chancellor said a strong NHS was at the heart of the prime minister’s vision for the country.
Autumn Statement Key takeaways
Business
- Business rates will have an additional package £13.6bn over 5 years
- Capital gains will be cut from £12,300 to £6,000 next year and then to £3,000 from April 2024
R&D relief changes from April 2023
Wages
- National living wage increase to £10.42 from April 2023
New Minimum Wage rates
Minimum Umbrella Rate
Taxation
- Income Tax personal allowance threshold will be frozen until 2028
- Taxes as a proportion of our national income will rise by just over 1% over next five years
- Reduction from highest rate tax threshold – reducing from £150,000 – £125,140 at 45%
- Dividend tax-free amount will be cut from £2,000 to £1,000 next year and then to £500 from April 2024
Other
- Electric vehicles will no longer be exempt from excise duty from April 2025
- Means-tested benefits, including Universal Credit, will rise in line with September’s inflation figure of 10.1% from next April
- Pensions will rise in line with September’s inflation rate of 10.1%
- Defence to be maintained at 2% budget of GDP
- 68% reduction in emissions by 2030
- Education budget is to receive extra £2.3b in schools over the next two years
- NHS budget to increase to £3.3b in next two years
If you have any questions about how the Autumn Statement 2022 may impact you or your business, please do not hesitate to contact us.
