Introduction
Chancellor Jeremy Hunt unveiled the contents of the Autumn Statement in the House of Commons last week. He started his speech by saying that there were 110 measures being put in place to "help grow the British economy".
Growth is better than expected this year according to the Office for Budget Responsibility (OBR), although they state the impact of the Autumn Statement on output growth will be "modest".
Below is a summary of the main measures that will impact smaller organisations and organisations led by people with disabilities and long-term health conditions.
Key Business and Taxation Points
A cut in employees National Insurance contributions from 12% to 10% from 6 January 2024
Business rate relief extended – a freeze on the small business multiplier for a further year
A 9.8% increase to the minimum wage to £11.44 per hour from April, which will be expanded to 21- and 22-year olds
Class 2 National Insurance Contributions for the self-employed will not be required from 6 April 2024
A cut in the rate of Class 4 National Insurance Contributions from 9% to 8% on self-employment/partnership profits between £12,570 and £50,270
Additional levelling up funding
Other Key Statements
Welfare recipients will be made to undertake a mandatory work placement if they are still looking for a job after 18 months
Universal Credit and disability benefits will increase next year by 6.7%
Work Capability Assessment to be reformed to reflect availability of home working after Covid pandemic
State pension payments to increase by 8.5% from April, in line with average earnings
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To view the full Autumn Statement, please visit the following webpage: GOV UK | Autumn Statement.
If you would like any advice on how these changes will impact your organisation, please get in touch.