Autumn Statement 2023: Our Predictions
17/11/23
What are your thoughts about the upcoming Autumn Statement? With less than one week to go until Jeremy Hunt delivers his statement to the House of Commons, predictions are well under-way about what exactly will be announced by the Chancellor.
While recent economic statements have prioritised economic growth and stability, the UK has been suffering from persistent inflation, a high tax burden, and rising interest payments on Government debt.
Earlier this week HM Treasury announced their success in halving inflation from January to October of this year. Therefore, as the government continues their mission to ease the financial burden of businesses and families across the country, there’s likely to be an ongoing focus on decreasing inflation and restoring the economy. To support this, we hope the following topics will be covered:
- Permanent extension of the ‘full-expensing’ capital allowance regime from the current March 2026 deadline.
- Introducing tax incentives for companies to invest in occupational health initiatives, to support wellbeing in the workplace.
- Changes to the corporation tax bands to protect more small businesses from the 25% rate.
- Extension of the current Stamp Duty Land Tax cuts to support the property market.
- Extension of the retail, hospitality and leisure business rates relief scheme, which is set to end April 2024.
- Whilst there has been speculation that inheritance tax could be abolished, we hope that there will at least be an increase to the current inheritance tax threshold for the first time since 2009 so that it aligns with inflation.
- Adjustment to the pension triple lock rules, so that bonuses aren’t considered when calculating average total earnings.
- Future increases to the income tax personal allowance or higher rate threshold to align with inflation.
- Updates to the current research and development reliefs and incentives for SMEs, to encourage investment in science and technology projects.
- Reformation of the current ISA schemes, increasing the annual allowance so that more people are encouraged to take advantage of the tax-free saving accounts.
- We may see a rise in fuel duty for the first time in 13 years, following the 5% cuts in fuel duty in March 2022.
The Chancellor will deliver his Autumn Statement around midday on Wednesday 22nd November. Amid speculation, we continue waiting in anticipation to hear the outcome of Wednesday’s announcement – rest assured, we’ll be sharing further guidance via our detailed statement summary!
You can find more accounting and tax news here.
If you would like to discuss how the Autumn Statement could impact you in more detail, then please do not hesitate to get in touch with Esther Ollech at esther.ollech@mgr.co.uk.
