On 17th November 2022, the new Chancellor of the Exchequer, Jeremy Hunt, announced his much-anticipated Autumn Statement.
Following the fallout from September’s mini budget, delivered by the now former Chancellor, Kwasi Kwarteng, the business world waited with bated breath to find out the ramifications.
Anyone who has tuned in previously to a statement will have been struck by the fact they’re full of numbers, acronyms, political barbs and feel like they last an eternity!
For this reason, we’ve decided to break things down to the very core of what was said and identify some of the key points that will impact your business.
The chancellor announced a 9.7% increase in the National Living Wage for all age groups bar 21 to 22 year old, who will benefit from a 10.9% increase.
The new rates are as follows:
|Current Rate||Rate From April 2023||Increase (%)|
|National Living Wage||£9.50||£10.42||9.7%|
|21-22 Years old Rate||£9.18||£10.18||10.9%|
|18-20 Years Old Rate||£6.83||£7.49||9.7%|
|16-17 Years Old Rate||£4.81||£5.28||9.7%|
From a business point of view, if you’re employing staff on National Living Rates, it’s important you work out what impact this will have on your payroll ahead of April.
With energy being one of our core business services, we were on the edge of our seats when the Chancellor referenced the Energy Bill Relief Scheme in his Autumn Statement speech. However, the excitement was short lived as he announced the scheme would be addressed at a later date.
The Chancellor confirmed what many already knew, the UK is in a recession with GDP expected to fall by 1.4% in 2023.
Such news only strengthens the need for businesses to gain a firm hold over their expenditure and protect that bottom line.
Mr Hunt has pledged to support firms via an almost £14bn tax cut on business rates, benefitting over 700,000 UK businesses.
You can calculate your business rates here.
From 1st April 2023, the main rate of corporation tax will increase to 25% for profits in excess of £250,000. From the same date, a ‘small profits rate’ of 19% will apply to profits up to £50,000.
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