Left side advert image
Right side advert image
Super banner advert image
Subscribe to Print Monthly's RSS feed

Enter your email address here to sign up for our weekly newsletter

Business

Businesses ‘win’ in 2023 Autumn Statement

Analysts have reacted to the latest announcements by the chancellor with cautious optimism

Article picture

Chancellor of the exchequer, Jeremy Hunt, has announced a series of financial changes in the Autumn Statement

Following Jeremy Hunt’s presentation of the Autumn Statement in the House of Commons, businesses and analysts have reacted to the latest details.

The Autumn Statement, which sets out the government plans for tax and spending in the year ahead, affects both households and businesses in regards to rules and cash flow.

Announcements

Regarding taxation and wages, Hunt announced the main rate of National Insurance will be cut from 12% to 10% from January 6th, affecting around 27 million people.

Changes to National Insurance for self-employed people includes the removal of Class 2 National Insurance from April for people earning over £12,570, while Class 4 National Insurance will mean people pay 8% instead of 9% on profits between £12,570 and £50,270.

Also announced was the raising of the National Living Wage from £10.42 to £11.44 an hour from April, which now encompasses 21 and 22-year-old workers.

A big announcement for businesses included the now permanent “full expensing” tax break which allows companies to deduct spending on new machinery and equipment including printers and office equipment.

This investment into manufacturing has been welcomed by many groups including the Independent Print Industries Association (IPIA).

IPIA Chairman Charles Rogers says: “We are very heartened to see the confirmed announcement of £11bn investment per year in UK manufacturing through making the 'Full Expensing' scheme permanent. 

Charles Rogers visiting 10 Downing Street earlier in the year

“This means that print industry businesses and the supply chain that invest in the UK will reduce their tax by up to 25p for every £1 they spend on plant and machinery.”

Speaking about the change in the Commons, Hunt said: “the OBR say it will increase annual investment by around £3bn a year and a total of £14bn over the forecast period. We on this side of the House know that the way to back British business is not to borrow more or subsidise more but increase the incentives to invest.”

Rogers adds: "The IPIA has focused on advocacy for the extension and expansion of this specific policy since April 2023 - across multiple tiers of Government - and we are very hopeful this will strengthen market confidence and stimulate long-term sector growth."

Analysis 

Measures regarding R&D tax relief were also revealed including a simplification of the scheme by combining the existing expenditure credit and small and medium-sized enterprises (SME) schemes.

The new scheme also includes a cut in tax of 6% for firms that make losses following research and development expenditure.

Reacting to the statement, Colin Graham, head of tax policy at PwC, says: “Businesses are a significant winner of an Autumn Statement that marks the start of the run-up to the next General Election. The sharp focus on growth, investment and making work pay marks the Chancellor’s keen priority to look forward.

“Many will be surprised by the 2% cut NIC in Class 4 contributions and by the January start date which is highly unusual and might create some speculation over election timing. For employers, particularly those impacted by the significant increases in national living wage, there is no direct benefit for the NIC reduction which all goes to employees and self-employees".

The chancellor announced new support for apprentices as part of the Autumn Statement

Capital allowances lead at PwC, Portia Pierrel, adds: “The announcement that the tax advantages that the new ‘Investment zones’ and ‘Freeports’ will offer will be extended to ten years rather than the current five-year window will provide businesses with the confidence and flexibility to make long term UK investments beyond 2026.”

Areas of interest

Other points of noteworthy announcements included the £4.5bn to attract investment to strategic manufacturing sectors as well as around £500m over the next two years being used to fund artificial intelligence (AI) innovation centres.

The IPIA also noted policies like the freeze on the small business multiplier for business rates, £50m in funding to increase support for apprentices, as well as the one-year extension on the existing 75% business rates for retail, hospitality, and leisure.

The latter policy is hoped to bring more support and revenue from a key print buying market as the sector invests more into marketing.  

Concluding his thoughts, Rogers says: "Our work to advocate on behalf of the UK print and paper industries will continue. We urge any sector businesses that wish to provide feedback on trading conditions or the impact of Government policies to do so. This information is kept confidential and is passed directly to The Government Department for Business and Trade."

If you’d like to share news or opinions with us feel free to email at news@printmonthly.co.uk or join in with the conversation on Twitter and LinkedIn.

Print printer-friendly version Printable version Send to a friend Contact us

No comments found!  

Sign in:

Email 

or create your very own Print Monthly account  to join in with the conversation.