We’ve worked with a number of our partners to compile this summary of yesterday’s Autumn Statement. In addition to this summary, a full analysis is available here.
Before we delve in, this summary isn’t financial advice and we’d recommend seeking advice before taking action. If you are a client of Emery Little, we will discuss the implications at your next planning meeting. If you have any questions in the meantime, just get in touch.
A challenging backdrop
The Chancellor, Jeremy Hunt, was faced with a challenging economic backdrop to his first major set piece, grappling with a combination of over 11% inflation, an official recession and the need to calm markets and re-establish the UK’s financial credibility following the turmoil of September’s ‘mini-Budget’.
His long-term focus, he stated, is on stability, growth and public services. Most of the attention, however, centres on the balance he attempted to strike between tax increases (real and stealth) and spending cuts to fill the over £50 billion hole he has inherited. The key announcements covered a wide range of ground including:
- The main income tax allowances and thresholds, the main national insurance thresholds plus the inheritance tax nil rate bands will stay at their current levels for an extra two years to April 2028.
- The threshold for the 45% additional rate of income tax will reduce from £150,000 to £125,140 from April 2023.
- The dividend allowance will reduce from £2,000 to £1,000 from April 2023 and be halved again to £500 from April 2024. The capital gains tax annual exempt amount will be cut from £12,300 to £6,000 for 2023/24 and halved to £3,000 from April 2024.
- The government’s energy price guarantee will be adjusted from April 2023 so that the typical household will pay £3,000 a year.
- The state pension, pension credit, universal credit (UC), the benefit cap and certain other benefits will increase by 10.1% in line with CPI inflation to September 2022.
You can read the full analysis here and we’d like to remind you to make sure you get advice before taking action.