Hunt’s Statement – NI cut from 12% to 10 % – 27 Million People

Wednesday 22 November, 2023

Chancellor Jeremy Hunt provided the headline details of his Autumn Statement to the House of Commons.

The Autumn Statement is an important event in the UK political calendar, as it outlines the government's tax and spending plans.

Some of the key challenges facing the UK economy include high inflation, stalled growth, and soaring government borrowing. As a result, there has been speculation that the government may announce tax cuts, changes to pensions, and tougher benefits rules in the Autumn Statement. Changes and tax cuts have now been confirmed.

Thomas Oliver Mortgage Brokers and Financial Advisers see the Autumn Statement as an opportunity for the government to take steps to boost the UK economy.

Here is a summary of the main measures unveiled in the Autumn Statement:

Taxes & Wages

  • The main rate of National Insurance will be cut from 12% to 10% from 6 January – this change will affect 27 million people
  • Class 2 National Insurance – abolished from April – paid by self-employed people earning more than £12,570
  • Class 4 National Insurance – cut from 9% to 8% from April – paid by self employed on profits between £12,570 and £50,270
  • Minimum Wage – to increase from £10.42 to £11.44 an hour from April
  • Minimum Wage – the new rate will apply to 21 and 22-year-old employees
  • Veterans Relief – Greater national insurance relief and £10m to support veteran charities

Benefits & Pensions

  • Universal Credit – to increase by 6.7% in April
  • State Pension – payments to increase by 8.5% from April
  • Unemployed – £1.3bn to help those unemployed for over a year
  • Unemployed with Health Conditions – £1.3bn to help those unemployed to find jobs
  • Local Housing Allowance Rates – unfrozen and increased to 30% of local rents

Business & Infrastructure

  • Full Expensing – Purchases on machinery and equipment to to become tax deductible permanently
  • 75% Business Rates Discount – For Retail, Hospitality and Leisure Firms extended for an additional year
  • Household Close to Pylons & Transmission Infrastructure – £1000 reduction in energy bills for 10 years
  • £450m Housing Fund – For local authorities to deliver 2400 new homes
  • £500m for AI Innovation Centres – delivered over two years

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