betterRetailing’s live coverage on chancellor Jeremy Hunt’s Autumn Statement and what it means for retailers.
Hunt has kicked off the Statement. “Yes we take difficult decisions to tackle inflation but our plan leads to shallower downturn and lower energy bills.”
On predecessor Kwasi Kwarteng’s previous mini Budget: “Unfunded tax cuts are as risky as unfunded spending, which is why we reversed his decisions.”
Hunt claims upcoming decisions will make recession shallower. “We do not leave our debts onto the next generation.”
Business rates and taxes
“I start with personal taxes. We are taking difficult decisions on tax thresholds.”
The top rate of income tax paid has been reduced from a £150,000 threshold to £125,140.
Business rates: “We will proceed with revaluation of business properties from April 2023.” Government will provide a £13.6bn package of business rates support.
Income tax personal allowance threshold will also be frozen until 2028, meaning millions will pay more in tax.
Income tax personal allowance threshold will be frozen until 2028 the chancellor announces. This means millions of people will end up paying more in tax.
Meanwhile, the employment allowance will stay at its £5,000 level until 2028. “This means 40% of all businesses will pay no NICS at all.”
Energy companies are also to be hit with an expanded windfall tax of 35%, up from 25%.
Stamp duty cuts will continue to 2025, while the exemption for capital gains tax will be slashed from £12,300 to £6,00 next year, and then £3,000 from April 2024.
Hunt stresses that one of the biggest worries for families is energy bills. “We will spend £55bn to help households and businesses with energy bills. We will continue the energy price guarantee from April for another 12 months.”
National Living Wage will be increased by 9.7% to £10.42 from April. “It is the largest increase to the UK’s NLW.” Pensions to also rise by 10.1% in April, in line with inflation.
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