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Autumn Statement: The Government’s ‘Balanced Plan for Stability’
Acknowledging that the UK is in a recession, Chancellor Jeremy Hunt has set out the Government’s plan for stabilising the country’s economy and reducing inflation in the Autumn Statement announced earlier today.
The key messages delivered in the Chancellor’s speech are as follows:
Taxation & Earnings
The UK National Living Wage will rise from April 2023, for those over the age of 23, the hourly rate will rise from £9.50 to £10.42 per hour.
Income tax thresholds would be frozen, meaning millions of people will pay more in tax as wages rise. For those on high incomes, the 45% taxation rate will apply on earnings over £125,140, rather than the current £150,000. National Insurance and Inheritance tax thresholds will be frozen until April 2028.
Energy
The Government assistance with energy bills will be cut back, meaning that the typical household energy bill is set to rise from £2,500 per year to £3,000 from April 2023. There are additional payments to benefit those on mean-tested benefits, with a £900 payment being made, £300 for pension households and £150 for those on disability benefits.
The ‘Windfall tax’ applied to the profits of oil and gas firms, will increase from 25% to 35%, and be extended until March 2028. A new ‘temporary’ 45% tax on businesses that generate electricity will apply from January 2023.
Furthermore, electric cars, vans and motorcycles will be required to pay Vehicle Excise Duty from April 2025.
Find out more
These are the main messages delivered in the Chancellor’s Autumn Statement speech today, however if you would like to find out more and read the entire statement, more details can be found by visiting https://www.gov.uk/government/news/chancellor-delivers-plan-for-stability-growth-and-public-services
Talk to Us
If there is anything that you are worried about in terms of today’s announcement, or indeed you have any queries about your property, mortgage and situation, then please do not hesitate to contact us to see how we can assist you.
Source
BBC News (2022) Autumn Statement 2022: Key points at-a-glance. Available at: https://www.bbc.co.uk/news/business-63555313 (Accessed 17 Nov 2022)
All the information in this article is correct as of the publish date 17th November 2022. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
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