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Autumn statement as it happened: National Insurance cut by 2% for millions as pensions set to rise

Pedro Goncalves
·Finance Reporter, Yahoo Finance UK
Updated
Britain's Chancellor of the Exchequer Jeremy Hunt leaves 11 Downing Street on his way to present his Autumn Statement in the House of Commons, in London, Britain, November 22, 2023. REUTERS/Hannah McKay
Chancellor Jeremy Hunt has delivered his autumn statement. Photo: Hannah McKay/Reuters (Hannah Mckay / reuters)

This live coverage has ended. You can read a summary of the news here and find the latest finance coverage here.

LIVE COVERAGE IS OVER50 updates
  • Featured
    Pedro Goncalves

    Chancellor announces National Insurance cut by 2%

    Chancellor of the Exchequer Jeremy Hunt delivers his autumn statement in the House of Commons in London. Picture date: Wednesday November 22, 2023.
    Chancellor of the Exchequer Jeremy Hunt delivers his autumn statement in the House of Commons in London. Picture date: Wednesday November 22, 2023. (House of Commons/UK Parliament, PA Images)

    Jeremy Hunt announced the main rate of National Insurance will be cut by 2%, with the change taking effect from January.

    The change will benefit 27 million employees and should be worth £450 for someone on average earnings.

    Hunt said: “If we want people to get up early in the morning, if we want people to work nights, if we want an economy where people go the extra mile and work hard then we need to recognise that their hard work benefits all of us.

    “So today, Mr Speaker, I am going to cut the main 12% rate of employee National Insurance.

    “If I cut it by 1 percentage point to 11%, that would be an extra £225 in the pockets of the average worker every year. But instead, I’m going to go further and cut the main rate of Employee National insurance by 2 percentage points from 12% to 10%. This change will help 27 million people.”

    My colleague LaToya Harding has all the details.

  • Pedro Goncalves

    That is all from us on the autumn statement.

    Thank you for following our live coverage!

  • Pedro Goncalves

    Retail blasts autumn statement

    Helen Dickinson, chief executive of the British Retail Consortium, thinks the sector has been “sold out” by the chancellor.

  • Pedro Goncalves

    What the autumn statement means for your finances

    There was something for everyone in the autumn statement, as Jeremy Hunt covered all the bases – from pension rises to tax cuts, but what does it all mean for you? Yahoo Finance UK columnist and head of personal finance at Hargreaves Lansdown, Sarah Coles, breaks it down:

    National insurance cut

    The big announcement was saved for last – a 2 percentage point cut to Class 1 national insurance rates, which will be introduced from 6 January. This will apply to the 12% rate that is taken of anything you earn between £12,570 and £50,270, and will make a real difference to the money in your pocket.

    National living wage

    The national living wage will rise to £11.44 an hour on 1 April 2024 – up almost 10% from £10.42. It’s the biggest ever rise in the National Living Wage – up £1,800 a year for a full-time worker.

    State pension rise

    The state pension will rise 8.5% in line with the triple lock in April, which will come as a major relief for state pensioners, who will have been concerned the government would pick a lower measure in order to cut their costs.

    Read the full story here.

  • Pedro Goncalves

    IFS think tank warns of stealth taxes

    The Institute for Fiscal Studies said any gains from cutting National Insurance would be wiped out by frozen tax thresholds.

    “The 2p cut to National Insurance means £449 less tax paid by an average full-time employee, but this is almost entirely offset by frozen thresholds and other changes since 2021,” it said.

  • Pedro Goncalves

    Mortgage Guarantee Scheme to be extended

    Hidden in the fine print of the autumn budget, the government says it will extend the mortgage Guarantee Scheme.

    This scheme supports the availability of 95% Loan-to-Value mortgage products. While the scheme was due to close to new accounts on 31 December 2023, the government will extend the scheme for an additional 18 months until the end of June 2025 to continue helping prospective borrowers with smaller deposits buy a home.

    Amanda Aumonier, director of mortgage operations at Better.co.uk said: “This extension will provide much-needed continuity in supporting those navigating the challenging prospect of affording a home. While the scheme's success is evident, the government must address the broader challenges that persist in the housing market. Affordability remains a persistent issue, especially in certain regions. To address this, the government should explore comprehensive strategies to enhance housing supply and affordability.

    “Extending the mortgage guarantee scheme is a commendable step, but it must be part of a broader commitment to tackle the root causes of the housing crisis by addressing regional disparities, and ensuring that the dream of homeownership is within reach for all aspiring buyers.”

  • Pedro Goncalves

    No IHT changes in the autumn statement

    There was much speculation that Jeremy Hunt announce changes to the inheritance tax (IHT) but UK households will have to wait for next year to see if anything changes. Rachael Griffin, tax and financial planning expert at Quilter, said:

    "The optics of getting rid of IHT at the moment might have been too hard for the government to bear but this is certainly an area to watch for the budget next year.

    "However, the lowering of the headline rate of IHT from 40% would have undoubtedly have been met with approval from core Tory voters. Despite there being no changes, the nature of IHT is that many see it as a 'voluntary tax' due to its numerous exemptions, reliefs, and allowances, and makes the actual impact on estates vary significantly from the headline rate. This complexity can obscure the real rate paid by estates, often resulting in much lower effective taxation."

  • Pedro Goncalves

    ISA reform "disappointing" says expert

    The ISA reforms announced by the chancellor don’t go far enough, according to Karen Barrett, CEO and founder of Unbiased.co.uk. She said:

    "The move to allow savers to open more than one ISA of each type will give them the freedom to shop around for the best deal, but it’s thoroughly disappointing to see that the rumoured increase to the annual ISA allowance has failed to materialise – which would have allowed people to protect more of their money from the eroding impact of tax.

    “Higher interest rates mean it's been easier to exceed the PSA, so it would have been only fair to set that threshold higher to allow savers to better benefit from one of the few upsides of the soaring inflation policymakers have failed to control.”

    “I don’t feel comfortable with this language of ‘simplification’, either. It’s true that today’s changes are designed to streamline the ISA system – undoubtedly a good thing – but the reality is this stuff remains incredibly complicated, and it’s irresponsible to lead the general public to believe otherwise."

  • Pedro Goncalves

    UK house prices to fall in 2024, OBR warns

    UK house prices are predicted to fall by 4.7% next year, says the Office for Budget Responsibility.

    "Our central forecast estimates that house prices will grow by 0.9% in 2023 and then fall by 4.7% in 2024.

    "This would be consistent with the price of the average UK home reaching a low of around £266,000 at its trough in the final quarter of 2024.

    "All in all, from their high in the fourth quarter of 2022 to their low in the final quarter of 2024, nominal house prices are expected to decline by 7.6% (2.4 percentage points less than we expected in March).

    "We then expect house prices to recover slowly, reaching their late 2022 peak levels in the second half of 2027 and rising to 6.4% above this level by the end of the forecast. The outlook for house prices is particularly sensitive to changes in interest rates and household income growth."

  • Pedro Goncalves

    Biggest drop in living standards since 1950s

    Living standards, as measured by real household disposable income per person, are forecast to be 3.5% lower in 2024/25 than before the COVID-19 pandemic, according to the Office for Budget Responsibility (OBR).

    "While this is half the peak-to-trough fall we expected in March, it still represents the largest reduction in real living standards since ONS records began in the 1950s.”

    Disposable income per person is forecast to return to its pre-pandemic level in 2027/28.

  • Pedro Goncalves

    Pound wavers as Jeremy Hunt unveils raft of tax cuts in autumn statement

    The pound fell slightly against the dollar (GBPUSD=X) and euro (GBPEUR=X) on Wednesday as Chancellor Jeremy Hunt unveiled a raft of new policies meant to bolster the economy in the government's autumn statement, my colleague Lucy-Harley-McKeown writes.

    Sterling dipped from highs of about 1.15 euro shortly before the statement was delivered, to about 1.148 after.

    The pound was also down slightly against the US dollar, from $1.255 before the announcement, to $1.2525 after.

    “As far as sterling goes, last week’s inflation rate drop gave reason to see weakness in the pound," said Mike Owens, senior sales trader at investment platform Saxo. "Versus the US dollar, the pound remains supported which illustrates how dominant the macro-US outlook is."

    Read the full story here.

  • Pedro Goncalves

    Autumn statement: Key takeaways

    National Insurance

    £450 back into the pocket of the average worker earning £35,400 a year thanks to National Insurance tax cut from 12% to 10% for 27 million working people from January.

    Self-employed

    Tax to be cut and simplified for 2 million of the self-employed, abolishing an entire class of NICs and cutting the rate of the NICs top rate from 9% to 8% - with an average total saving of around £350 for someone earning £28,000 a year.

    Businesses

    Jeremy Hunt said the "biggest permanent tax cut in modern British history for businesses" will help them invest for less and boost investment by £20bn per year over the next decade.

    Triple lock

    Triple lock maintained for pensioners, benefits to rise in line with inflation and Local Housing Allowance increased to continue supporting families with the cost-of-living.

    National Living Wage

    Hunt said the National Living Wage rise represents boost of £1,800 to the average annual earnings of a full-time worker.

    Benefits

    Benefits will rise 6.7% next April in line with the inflation measure from September, rather than the lower measure from October.

    Alcohol duty freeze

    British pubs, breweries and distillers backed by freezing alcohol duty for six months to August 2024.

    Borrowing and debt

    Hunt said public finances are in a better position than in March, with borrowing and debt as a share of the economy down on average across the next five years.

  • Pedro Goncalves

    Inflation and interest rates will remain higher for longer, OBR suggests

    Jeremy Hunt says he is "delivering" on reducing inflation but the OBR suggests a different path.

  • Pedro Goncalves

    From nurses to teachers: National Insurance cut in practical terms

    • A senior nurse with 5 years of experience on £42,618 will receive an annual gain of £600.

    • An average full-time nurse on £38,900 will receive an annual gain of over £520.

    • An average police officer on £44,300 will receive an annual gain of over £630.

    • A typical junior doctor on £63,000 will receive an annual gain of over £750.

    • A cleaner working night shifts on £21,000 will receive a gain of £170.

    • A typical self-employed plumber on £34,400 will receive an annual gain of £410.

    • An average teacher on £44,300 will receive an annual gain of over £630.

    • A family with 2 earners on the average earnings of £35,404 will be £900 better off.

  • Pedro Goncalves

    Further business rates discount for hospitality, retail and leisure

    The government will freeze the small business multiplier for a further year.

    Treasury will extend the 75% discount on business rates up to £110,000 discount for retail hospitality and leisure businesses for another year as well.

    Hunt said these measures will save the average independent shop over £20,000 and the average independent pub over £12,800 next year.

  • Pedro Goncalves

    Tax cuts for self-employed worth £350 per year

    Class 2 National Insurance will be abolished under plans to simplify the tax system for the self-employed.

    “As part of our plans to grow the economy I want to reform and simplify the taxes paid by the self-employed. So today I am announcing a major reform of one of those taxes. It is one most people haven’t heard of, but it is a big deal for those who have to pay it. Class 2 National Insurance is a flat rate compulsory charge, currently £3.45 a week, paid by self-employed people earning more than £12,570 which gives state pension entitlement.

    “Today, after careful consideration and in recognition of the contribution made by self-employed people to our country, I can announce we are abolishing Class 2 National Insurance altogether, saving the average self-employed person £192 a year.”

    Hunt also turned to class 4 national insurance paid at 9% on all earnings between £12,570 and £50,270.

    He said: “I have decided to cut that tax by one percentage point to 8% from April. Taken together with the abolition of the compulsory class 2 charge, these reforms will save around two million self-employed people an average of £350 a year from April.”

  • Pedro Goncalves

    The new GDP forecasts

  • Pedro Goncalves

    Money off electricity bill for those living near power infrastructure

    Cost of living crisis. Money on a home radiator heater. Rising cost of energy and bills
    Cost of living crisis. Money on a home radiator heater. Rising cost of energy and bills (Ink Drop)

    People living near planned pylons and electricity substations are set to receive up to £10,000 off their bills over 10 years.

    The chancellor said he would be publishing the government’s plans to tackle energy grid connection problems.

    “These measures will cut grid access delays by 90% and offer up to £10,000 off electricity bills over 10 years for those living closest to new transmission infrastructure. Taken together these planning and grid reforms are estimated to accelerate around £90bn of additional business investment over the next 10 years.”

  • Pedro Goncalves

    Changes to the rules for pension funds

    “I will also consult on giving savers a legal right to require a new employer to pay pension contributions into their existing pension pot if they choose, meaning people can move to having one pension pot for life.

    “These reforms could help unlock an extra £75bn of financing for high growth companies by 2030 and provide an extra £1000 a year in retirement for an average earner saving from 18.”

  • Pedro Goncalves

    £50m to increase the number of apprentices

    Hunt announced £50m over the next two years to try to increase the number of apprentices in engineering and “key growth sectors” where there are shortages.

  • Pedro Goncalves

    Economy to grow by 0.6% this year

    Hunt told the Commons that the OBR “expects the economy to grow by 0.6% this year and 0.7% next year. After that, growth rises to 1.4% in 2025, then 1.9% in 2026, 2% in 2027 and 1.7% in 2028”.

    But he added: “If we want those numbers to be higher, we need higher productivity.”

    He pointed to countries like France and the US where the private sector “invests more”, adding: “The 110 measures I take today help close that gap by boosting business investment by £20bn a year.

    “They do not involve borrowing more and ramping up debt as some advocate.

    “Instead, they unlock investment with supply-side reforms that back British business in the following areas.”

  • Pedro Goncalves

    New money for veterans

    Treasury has said there will be new money for veterans. It tweeted:

  • Pedro Goncalves

    Local Housing Allowance rate to rise

    On private rents, Hunt said he had heard representations on the need to unfreeze local housing allowance.

    He said: “I will therefore increase the local housing allowance rate to the 30th percentile of local market rents. This will give 1.6 million households an average of £800 of support next year.”

  • Pedro Goncalves

    Triple lock saved

    The Government will honour its commitment to the triple lock “in full” by increasing the state pension by 8.5% to £221.20 a week from April 2024, Chancellor Jeremy Hunt said.

    “The triple lock has helped lift 250,000 older people out of poverty since it was instituted in 2011 and been a lifeline for many during a period of high inflation.

    “There have been reports that we would uprate it by a lower amount to smooth out the effect of high public sector bonuses in July, but that would have been particularly difficult for one million pensioners whose only income is from the state.

    “So instead, today we honour our commitment to the triple lock in full. From April 2024, we will increase the full new state pension by 8.5% to £221.20 a week, worth up to £900 more a year. That is one of the largest ever cash increases to the state pension – showing a Conservative government will always back our pensioners.”

  • Pedro Goncalves

    Benefits will be uprated next year by 6.7%

    Jeremy Hunt announced that benefits will rise next April in line with the inflation measure from September, rather than the lower measure from October.

    He said: “So instead, the Government has decided to increase Universal Credit and other benefits from next April by 6.7% in line with September’s inflation figure, an average increase of £470 for 5.5m households next year. Vital support to those on the very lowest incomes from a compassionate Conservative government.”

  • Pedro Goncalves

    Alcohol duty frozen

    Hunt confirms he has frozen all alcohol duty until 1 August next year.

    “As well as confirming our Brexit Pubs Guarantee, which means duty on a pint is always lower than in the shops, I have decided to freeze all alcohol duty until August 1st next year.

    “That means no increase in duty on beer, cider, wine or spirits.”

    Read more here.

  • Pedro Goncalves

    Hunt: The government will “reduce debt, cut taxes and reward work”

    Jeremy Hunt told the Commons: “In today’s autumn statement for growth our choice is not big government, high spending and high tax because we know that leads to less growth, not more.

    “Instead we reduce debt, cut taxes and reward work.

    “We deliver world class education. We build domestic sustainable energy.

    “And we back British business with 110 growth measures – don’t worry, I’m not going to go through them all – which remove planning red tape, speed up access to the national grid, support entrepreneurs raising capital, get behind our fastest growing industries, unlock foreign direct investment, boost productivity, reform welfare, level up opportunity to every corner of the country, and cut business taxes.”

  • Pedro Goncalves

    Hunt claims economy 'back on track' as he starts autumn statement

    He tells MPs: “After a global pandemic and energy crisis we have taken difficult decisions to put our economy back on track.

    “We have supported families with rising bills, cut borrowing and halved inflation.

    “Rather than a recession, the economy has grown. Rather than falling as predicted, real incomes have risen.

    “Our plan for the British economy is working. But the work is not done.”

  • Pedro Goncalves

    Jeremy Hunt is delivering the autumn statement

    Jeremy Hunt is delivering his eagerly anticipated autumn statement.

  • Pedro Goncalves

    Chancellor Jeremy Hunt to deliver statement

    Chancellor Hunt to start speaking shortly

  • Pedro Goncalves

    Treasury says it wants to make life easier for businesses and entrepreneurs. But here's just one example from Dan Neidle, founder of Tax Policy Associates, of the level of red tape HMRC can create.

  • Pedro Goncalves

    Autumn statement will create jobs and boost investment, says Sunak

    Rishi Sunak said the autumn statement will help to create jobs while also reforming public services.

  • Pedro Goncalves

    Hunt: 'Economically and morally wrong' for people to be on benefits with no need to look for work

    Chancellor Jeremy Hunt told Cabinet that it was “economically and morally wrong” that 100,000 people were on benefits with no requirement to look for work.

    A Downing Street spokesman told PA:

    “The chancellor said that his statement was one that backs business and rewards workers to get Britain growing.

    “He particularly pointed to tackling the problem of 100,000 people being signed onto benefits with no requirements to look for work because of sickness or disability, saying that it is a waste of potential that is both economically and morally wrong and that the back-to-work plan would support over a million people to find work.

    “The prime minister concluded Cabinet by saying it was no accident that stability had been restored to the economy and that inflation had halved – it was the result of actions taken by the government.

    “He said the government would now turn its focus to the long-term decisions needed to grow the economy further and build a brighter future – with the autumn statement delivering on that change.”

  • Pedro Goncalves

    110 measures 'to make a really big difference', says Hunt

    Here's Hunt talking about the autumn statement before leaving for the House of Commons

  • Pedro Goncalves

    Chancellor on his way to deliver autumn statement

    Chancellor of the Exchequer Jeremy Hunt leaves 11 Downing Street, London, for the House of Commons to deliver his autumn statement. Picture date: Wednesday November 22, 2023. PA Photo. See PA story POLITICS Budget. Photo credit should read: Yui Mok/PA Wire
    Photo: Yui Mok/PA Wire (Yui Mok/PA Wire)

    Chancellor of the Exchequer Jeremy Hunt leaves 11 Downing Street, London, for the House of Commons to deliver his autumn statement.

    The chancellor held his light green autumn statement document as he briefly posed for photographers before walking to a car that was waiting.

    Hunt will deliver his fiscal address in the House of Commons immediately after Prime Minister’s Questions. PMQs will start as normal at noon and Hunt should deliver his statement at around 12h30pm.

  • Pedro Goncalves

    Autumn Statement must 'boost growth', says NIESR

    The National Institute of Economic and Social Research has set out its hopes for the autumn statement.

  • Pedro Goncalves

    Hunt hopes measures will help entrepeneurs

    Jeremy Hunt said he hoped the autumn statement’s measures would make a “really big difference” to entrepreneurs.

    In a social media video, the chancellor said the statement had “110 different measures to help grow the British economy”.

    “I’m thinking of my own business, that I set up over 30 years ago,” the chancellor said.

    “I want to help thousands of other people do what I did, and I hope today will make a really big difference.”

  • Pedro Goncalves

    Tax cuts will make BoE cautious about cutting interest rates, economist warns

    Hunt’s tax cuts will likely make the Bank of England more cautious about cutting interest rates, warns Steven Bell, chief economist (EMEA) at Columbia Threadneedle Investments.

    “The Autumn statement is set to include tax cuts, with the promise of more to come. These tax cuts come after a massive rise in the tax burden in the UK so it’s more a question of reducing the tax increase. Nonetheless, with lower inflation, lower mortgage rates and generous social security payments feeding through, it is possible that consumer spending picks up from its current depressed levels.

    "The Bank of England may be reluctant to join the rate cutting party until it is sure that inflation is on a path to the 2% target on a sustainable basis.”

    Inflation remains a threat that is being “underestimated” by markets the Bank of England warned on Tuesday, suggesting that it is sensible to keep interest rates where they are.

    Read more here.

  • Pedro Goncalves

    Pound could be ‘strengthened’ if policies ‘exceed expectations for growth’

    English money
    Photo: PA/Alamy (Warren Bourne)

    Mike Owens, senior sales trader at investment platform Saxo has said the pound could be strengthened by new policies if they "exceed expectations for economic growth" as inflation cools in the UK and appears "under control".

    “In the inflation fight, markets are currently pricing a first interest rate cut from the Bank of England in June 2024 which shows an optimism that inflation is now under control as base effects play through and as the economy cools. UK inflation remains higher than that of Europe and the US and the Treasury have already signalled they want to avoid any changes that stoke further inflation while at the same time promote economic growth.

    “As far as sterling goes, last week’s inflation rate drop gave reason to see weakness in the pound. Versus the US dollar, the pound remains supported which illustrates how dominant the macro-US outlook is. Although Jeremy Hunt pushed back on the prospect of imminent tax cuts, he has also acknowledged the ability for tax cuts to boost growth. Any policy that exceeds expectations for domestic economic growth could see the pound strengthened."

  • Pedro Goncalves

    FTSE and European markets rise ahead of autumn statement

    In London, the FTSE 100 (^FTSE) rose 0.2% ahead of the chancellor's autumn statement. The CAC (^FCHI) gained 0.5% in Paris, and the Frankfurt DAX (^GDAXI) climbed 0.4%.

    The Stoxx 600 (^STOXX) was up 0.3%, with broad-based gains across the continent. Across the pond, S&P futures (ES=F), Dow futures (YM=F) and Nasdaq futures (NQ=F) were mixed as investors digested the minutes from the latest FOMC meeting.

    Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: “A muted early trading session is expected for the FTSE 100 as the rumour mill continues to grind about the seasoning Jeremy Hunt plans to sprinkle into the UK economy to try and improve its growth prospects.”

    “Investors will be highly attuned to what the chancellor plans as part of that recipe and tax cuts now look set to be a key ingredient, even though they risk turning up the heat on inflation.”

    Overnight Nvidia (NVDA) earnings crushed market expectations yet again.

  • Pedro Goncalves

    Minimum wage to rise to £11.44 in April next year

    London, UK. 03rd Jan, 2023. London commuters make their way to the office across London Bridge on their first day back to work in 2023, avoiding train strikes which are causing widespread disruption across the country and millions of people have been advised to avoid rail travel. 03rd January, 2023, City of London, England, UK Credit: Jeff Gilbert/Alamy Live News
    Photo: Jeff Gilbert/Alamy Live News (Jeff Gilbert)

    The national living wage will rise to £11.44 in April next year, the Treasury has announced.

    The rate is currently £10.42 for workers aged over 23, but the new figure will apply to 21 and 22-year-olds for the first time.

    The national minimum wage for 18 to 20-year-olds will also increase by £1.11 to £8.60 per hour, the Government has said.

    Apprentices will have their minimum hourly rates boosted, with an 18-year-old in an industry like construction seeing their minimum hourly pay rise by more than 20%, going from £5.28 to £6.40 an hour.

  • Pedro Goncalves

    Hunt to freeze duty on alcohol

    Foreign Secretary and Tory leadership candidate Jeremy Hunt visits pulls a pint at The Keep pub in Guildford, Surrey during a campaigning visit to the area.
    Jeremy Hunt pulls a pint at The Keep pub in Guildford, Surrey during a campaigning visit to the area. (Stefan Rousseau, PA Images)

    Jeremy Hunt will freeze duty on alcohol in a bid to boost pubs, according to a report.

    The Sun reports the chancellor will not put up levies on beer, wine and spirits.

    Pubs and bars will are also likely to have their 75 per cent business rates holiday extended, the paper adds.

  • Pedro Goncalves

    These are the five things on Hunt’s list that will impact you

    Yahoo Finance UK columnist and head of personal finance at Hargreaves Lansdown, Sarah Coles, tells us five likely changes which could have a big impact on your finances.

    Income tax cuts

    There are no guarantees, but we could get an income tax or National Insurance tax cut. This could come in the form of thresholds being unfrozen ahead of schedule, which would be a major relief. These thresholds matter because they’re the point at which you start paying tax – or pay a higher rate. Freezing them means pay rises have pushed people into paying much more tax. At the moment, the plan is to leave them in the deep freeze until 2028, during which time they’ll do even more damage to our finances, so an early defrosting would be very welcome.

    Inheritance tax cuts

    This is looking less of a shoo-in than it did before income tax cuts were laid on the table, but remains a possibility. The Treasury likes the idea because it’s an unpopular tax and it can be cut without massive expense or inflationary risk.

    ISA reform

    This was floated a couple of months ago, and although pre-statement chatter has been a bit quiet on the subject, we’re still expecting some announcements. There’s the outside chance of a rise in the overall £20,000 allowance, which would be a shot in the arm for investors, and could provide a popular rabbit to pull from the hat.

    Pension changes

    All eyes will be on Hunt’s plans for the state pension, and whether he decides to increase it with the triple lock of 8.5%, or find a way to peg it to a lower increase. It’s also worth watching for news on what’s known as the lifetime pension.

    News on NS&I

    We’re expecting Hunt to announce how much money it wants NS&I to raise in the coming tax year. This matters, because there’s a reasonable chance it will be much higher than the year earlier, which means NS&I will have to work harder to attract more savings.

  • Pedro Goncalves

    Autumn statement: What to expect from Jeremy Hunt’s latest budget

    Jeremy Hunt, chancellor of the exchequer, is set to deliver his second autumn statement in a couple of hours as he seeks to help boost the UK economy ahead of a looming general election.

    Here is a breakdown of what we can expect:

    ISAs

    Hunt is said to be considering reforming the Individual Savings Account (ISA) system to encourage providers to offer more competitive rates and help consumers make more in tax-free interest. The shake-up would also encourage more domestic investment in the UK stock market.

    Tax cuts

    The likelihood of tax cuts in the autumn statement has risen slightly as we draw closer to the event. This had been expected to be postponed until the spring, however, the Office for Budget Responsibility (OBR) said ‘fiscal headroom’ has grown to between £13bn and £15bn – opening the opportunity for more spending or tax cuts.

    Housing

    There is growing speculation that the finance minister may deliver some tweaks to stamp duty on residential property.

    Alice Haine, personal finance analyst at Bestinvest, said: “[This is] namely introducing an exemption for homeowners looking to downsize to a smaller property or more support for first-time buyers.

    Alcohol and fuel duty

    Alcohol duty is expected to rise again with RPI inflation, currently 8.9%. This will push the price of an average bottle of red wine to £8, from £7.74 today.

    Pensions

    There may be some announcements regarding pensions during the statement, particularly changes to the state pension triple lock formula and measures aimed at encouraging schemes to invest in more productive assets.

    Read more here.

  • Pedro Goncalves

    Autumn statement: Why it matters for your pensions

    The chancellor’s autumn statement is just hours away and the news has been full of what he may announce. Amid the speculation about inheritance tax, ISAs and national insurance it could also prove to be a big day for pensions with a series of important announcements potentially making an appearance.

    State pensions

    One key thing we are waiting for is whether government will pledge to increase the state pension according to the rules of the triple lock next year.

    More choice for investments

    We are expecting more detail on government plans to help pension schemes invest in more illiquid assets – which is another way of saying investing in things that are a bit more difficult to buy and sell – like the shares of companies that aren’t on the stockmarket.

    Read more here.

  • Pedro Goncalves

    The chancellor prepares for the Autumn Statement

    Chancellor Jeremy Hunt prepares for the Autumn Statement 2023 in his kitchen in the No 11 flat
    Photo: Kirsty O'Connor/HM Treasury (N10-5152)

    Chancellor Jeremy Hunt prepares for the Autumn statement in his kitchen in the No 11 flat.

  • Pedro Goncalves

    The Times’s Steven Swinford has posted a list of expected measures in the autumn statement.

  • Pedro Goncalves

    28 million could see a cut to their national insurance

    The Times reported that 28 million people would see a cut to their national insurance while multiple reports suggest that full expensing, a scheme allowing firms to deduct spending on investment in new machinery and equipment from profits, will be made permanent.

    A 1% cut would be worth £380 a year to someone earning more than £50,000 but could cost the government somewhere in the region of £5bn.

    There will be support for entrepreneurs to raise capital, measures to “get behind our fastest growing industries”, policies to unlock foreign direct investment and measures to boost productivity, an issue which has dogged the UK economy for years.

    “Taken together we will increase business investment in the UK economy by around £20bn a year over the next decade and get Britain growing,” Hunt will tell MPs.

  • Pedro Goncalves

    Chancellor to announce 110 measures focused on growth

    The chancellor’s Commons statement is expected to contain 110 different growth measures as he seeks to revive the UK’s economy and the Tories’ election chances.

    He will attempt to turn a corner after the Covid-19 pandemic and the energy price spike following Russia’s invasion of Ukraine led to the highest tax burden since the Second World War and huge state interventions to support the stricken economy and hard-pressed households.

    Hunt will tell MPs: “The Conservatives will reject big government, high spending and high tax because we know that leads to less growth, not more.”

  • Pedro Goncalves

    Hunt promises to ‘get Britain growing’ with tax-cutting autumn statement

    The economy is “back on track”, Jeremy Hunt will declare as he starts cutting taxes and pushes for business growth ahead of next year’s election.

    The chancellor will reportedly use his autumn statement to reduce headline rates of national insurance and make permanent a £10bn-a-year tax break for companies that invest in new machinery and equipment.

Watch: Autumn statement: Chancellor Jeremy Hunt to claim economy is 'back on track'

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