Tax cuts for British businesses and workers headlined Chancellor Jeremy Hunt’s Autumn Statement today (22 November).
The chancellor announced that 100% capital allowances on qualifying plant and machinery investments (full expensing) will be made permanent, meaning that for every pound invested its taxes are cut by up to 25p.
In addition, employee National Insurance rate will be cut from 12% to 10% from 6 January 2024 and Class 2 National Insurance contributions for self-employed people will be abolished.
Additional measures announced in the Autumn Statement include:
- Alcohol duties, including beer, wine, cider and spirits, will be frozen until 1 August next year.
- Duty rates on hand rolling tobacco will rise by 10% above the existing tobacco duty escalator.
- Local authorities will be able to recover full costs of business planning applications to process applications quicker, or the application fee will be refunded.
- Introducing a legal right for workers to require employers to pay into their existing pension pot.
In response, NFRN National President Muntazir Dipoti, said: “It was disappointing that there was no mention of any increase in public spending, especially on policing, at a time when shoplifting and attacks on shop staff have reached epidemic proportions.”
ACS Chief Executive James Lowman said many local retailers will be “concerned about how to absorb the cost of another significant jump in the National Living Wage rate, without any help to offset this huge increase in wage costs, such as reducing the burden of Employer National Insurance Contributions”.
Meanwhile, Chief Executive of the Scotch Whisky Association Mark Kent, said: “With cost pressures hurting distillers large and small, the Treasury has provided some much-needed certainty and stability for the year ahead that will allow us get back to doing what we do best – making a world-class spirit, with a global reputation, which creates jobs and boosts growth here at home.”
