“Growth up, jobs up, and debt down: Let there be no doubt – our plan is working.”
These were the opening remarks from Chancellor, Rishi Sunak, during his Autumn Budget announcement earlier today.
He began with an overview of the economic landscape with the news of better-than-expected economic growth and a warning about inflation.
With rising inflation, a global issue, the Office for Budget Responsibility (OBR) forecasts that inflation will average 4% next year. Despite the pressures being global in nature, he stressed the government will act to support UK households.
Better than initially predicted, the economy is expected to grow by 6.5% this year with the economy returning to its pre-pandemic size early 2022, 2.5% higher than expected.
Unemployment is forecast to peak at 5.2%, down from a forecast of 12% last year.
Next, he outlined the details of his budget and spending review, of which there were lots. Rather than covering everything, here’s a top-level overview on the following.
- National Living Wage
- Corporation Tax Rates
- Research & Development
- Business Rates
National Living Wage
- The national living wage will increase from £8.91 to £9.50 an hour which represents an increase of £1,000 a year for a full-time worker
This echoes the Prime Minister’s goal to move “towards a high wage, high skilled, high productivity economy that the people of this country need and deserve.”
Corporation Tax Rates
- As previously outlined in September, Dividend Tax Rates will rise 1.25% from April 2022.
- The bank surcharge, levied on bank profits, will reduce from 8% to 3% from April 2023.
Research & Development
- The government will invest £20bn in R&D by 2024/25
- R&D Tax relief will be limited to domestic activity
been campaigning for fairer and more timely measures.
Business rates will be reformed to support companies, including a new 12-month relief for companies to invest in their premises and 50% business rates discount for companies in retail, hospitality, and leisure sectors, up to a maximum of £110,000.
Next year’s planned increase in the business rates multiplier will be cancelled
- The planned rise in fuel duty has been cancelled.
- Plans to reform alcohol duty were announced with planned duty rate increases cancelled and rates reduced for lower alcohol and draught products, designed to encourage the restoration of on trade drinking.
If you have any questions about how the Autumn Budget will affect you and your business, please get in touch. Email firstname.lastname@example.org or call 0800 112 0880.
This article is for information only.