Reactions to the 2023 Autumn Statement

Changes to National Insurance Contributions (NICs)

The Chancellor Jeremy Hunt announced 110 measures as part of the Autumn Statement, designed to stimulate economic growth, with significant changes to NICs. However, Katharine comments that the cut in NI rates might not be as significant as it seems.

Katharine says: “While the NI cuts will somewhat lessen the burden for many individuals, the actual annual saving is, in reality, minor when compared to the current tax burden on households.” Katharine also notes that with record highs of inflation, it has pushed many people into higher tax bands, leading to a record number of receipts for personal taxes.

Changes to National Minimum Wage and National Living Wage

In addition, the Chancellor announced an increase to the National Minimum Wage (NMW) and National Living Wage (NLW) rates, effective from 1 April 2024. However, Katharine questions whether this is more burden on businesses: “While it will mean slightly more money in people’s pockets, which should help the wider economy, employers will now need to cope with more complicated payrolls, applying the new rates before the start of the new tax year, and meeting the costs of the increased Living Wage.”

You can read Katharine’s comments across various publications below:

• The FT (subscription needed)
• Accountancy Daily
• Accountancy Age
• eprivateclient (subscription needed)
• IFA Magazine
• WealthDFM Magazine

haysmacintyre’s full coverage of the Autumn Statement is here. For further advice on the Statement and what it means for you, contact Katharine here.