The Autumn Statement at-a-glance: Chancellor goes for growth

Chancellor Jeremy Hunt revealed new measures to ‘get the economy back on track’ in his Autumn Statement on Wednesday as he lined-up ‘110 policies’ to boost growth. 

While the Chancellor did not detail all 110 measures he unveiled the key tax adjustments intended to boost British business, including making the allowance for ‘full expensing’ permanent. 

Crucially the Chancellor also announced a cut to National Insurance from 12 to 10 per cent, and the complete abolition of Class 2 National Insurance for lower earners. 

Chancellor Jeremy Hunt  

The pensions triple lock at the higher September rate of 8.5 per cent was also confirmed, as Hunt froze alcohol duty, revealed plans designed to speed-up business planning applications and build more homes. 

Hunt pledged the Autumn Statement will ‘reduce debt, cut taxes and reward work’.

We explain all of the key announcements and what they mean for your finances.

Personal tax 

The main rate of National Insurance will be cut from 12 to 10 per cent.

The Chancellor announced he would be abolishing class 2 national insurance all together, thereby saving ‘the average self-employed person’ £192 each year. 

The Chancellor confirmed a cut to National Insurance for 28 million people. 

Meanwhile, alcohol duty will be frozen until August next year 

Business

It was a business-heavy Autumn Statement with the Chancellor promising a ‘the biggest business tax cut in British history’. 

So-called full expensing, whereby companies can deduct all spending on IT equipment, plant or machinery from taxable profits, was made permanent 

Hunt also lined up £4.5billion investment for manufacturing up to to 2030, and £500million in funding for artificial intelligence initiative. 

In positive news for the hospitality industry, the temporary 75 per cent business tax relief has been extended to 2025.

Hunt revealed plans to accelerate planning applications though new reforms, local authorities will be able to recover the full costs of major business planning applications for meeting faster timelines.

Property 

Hunt moved to increase the local housing allowance, claiming the new level would equate to roughly £800 of support 1.6 million households annually.

Pensions and benefits  

The Chancellor confirmed that universal credit and other benefits would go up by 6.7 per cent, in line with the September inflation figure rather than the much lower October figure. 

The state pension will go up by 8.5 per cent from April to £220.20, which is worth up to £900 more a year. 

The living wage will also go up to £11.44 from April 2024 

Hunt is also set to consult on pension reforms  

Hunt to consult on pension pot reforms to give people the option of having one pension pot for life.

This, the Chancellor says, could help deliver an extra £1,000 a year in retirement income for an average earner saving from 18.   

OBR forecasts 

The Office for Budget Responsibility has sharply downgraded its economic growth forecast for 2024 and 2025.

The economy is expected to grow 0.7 per cent in 2024, down from 1.8 per cent previously, while 2025 expectations have fallen from 2.5 to 1.4 per cent. 

OBR: Combined impact of measures will raise business investment, more people in work, reduce inflation and increase GDP. 

Inflation will hit 2.8 per cent by the end of 2024, according to the OBR, before going below the Bank of England’s 2 per cent target in 2025.

This post first appeared on Dailymail.co.uk