Autumn Statement 2023

November 23, 2023

Against the backdrop of a cost-of-living crisis, a near-stagnant economy and a looming election, the 2023 Autumn Statement was seen to reflect a pivotal moment in the UK’s economic trajectory.

As Jeremy Hunt stepped up to the dispatch box for his second Autumn Statement as Chancellor of the Exchequer, the nation’s attention was firmly fixed on potential tax cuts.

Last autumn, the Chancellor used his fiscal speech to brace the UK for a “storm” of tax rises. This year, however, with a fiscal windfall of around £27bn to play with, Hunt was able to turn his attention to reducing the tax burden for households and businesses.

The Chancellor announced “110 measures to help grow the economy”, including a 2% cut to the main rate of National Insurance (NI) from 6 January, alongside incentives to encourage business investment such as permanently extending the full expensing initiative.

The speech may have done more to answer calls from the backbenches for tax cuts than was expected a few months ago, but Hunt held off from announcing any changes to inheritance tax or income tax, despite much media speculation

Hunt also used his speech to set out the Government’s new ‘back to work plan’, promising additional support for those with health conditions, raising the minimum wage and introducing stricter benefits rules to encourage more people to rejoin the workforce.

In this report, we provide a comprehensive overview of the Chancellor’s key announcements, guiding you through the intricacies of the latest fiscal changes and dissecting the impact on businesses and individuals alike.