Autumn Budget Statement: Everything you need to know
National Insurance has been cut by 2%
Last updated 22nd Nov 2023
The Chancellor, Jeremy Hunt has announced his Autumn Budget for 2023. It draws out how the Government plans to spend our taxes over the next 12 months, as well as tax-adjustments to our income and the things we buy.
The main lines to take away are:
National Insurance cut by 2%
In perhaps the biggest news to come out of this year's budget, the Chancellor has announced employed people in the UK will pay less National Insurance, which goes a long way to funding the NHS. Currently, the average worker pays 12% of their wage, from January that will be reduced to 10%.
Minimum wage increased to £11.44ph
The lowest paid workers in the UK will see an increase in the amount they're paid. Minimum wage is going up from £10.42 to £11.44, which is the biggest increase in modern history and The Chancellor suggested the move eliminates 'low-paid' workers in the UK.
Self Employed will save £350pa
People who work for themselves in the UK will no longer have to pay Class 2 National Insurance, and their Class 4 National Insurance contribution will be cut. This will save the average self employed person £350 in tax relief.
Other noticeable measures:
- Increase universal credit by 6.7% - average increase of £470pa
- Increasing duty on tobacco
- No duty increase on alcohol - promising duty will always be lower in pubs than in shops
- Triple lock pensioners expected to benefit £900pa
- £10m million pounds for veterans support and continued tax relief
- £50m over two years to get more apprentices in engineering
- £110m over two years to increase number of houses
- £500m over two years to create new 'AI' centres which will help British manufacturers
- £4.5bn over 5 years to garner interest in automotive sector
- £520m for pharmaceutical companies
- £960m - for green industries - renewable and nuclear energy
- Extend financial relief for freeports for another 5 years
- 3 new 'Freeports' in East Mids, West Wids and Greater Manchester
- New investment zone in Wrexham and Fincher
- £50m for regeneration in less affluent communities
- Tax cut for businesses
Mr. Hunt opened the budget by saying core inflation is now lower, and inflation has halved since Rishi Sunak became Prime Minister. He said that the country's debt is reducing and the amount we borrow is lowering.
He said the Government is doubling the number of teachers and doctors in education. The Chancellor wants to cap and reduce the size of the civil service to pre-pandemic levels.
Ensure people pay the tax they owe, which will raise the country's income.
Faster growing economy than most of Europe and Japan. It's now 1.8% larger than it was pre-pandemic.
The Chancellor said he wanted to reduce inflation and increase GDP (the money the country makes from productivity.)
The Chancellor also announced extra funding to help tackle Anti-Semitism and a memorial.
However, Labour's Shadow Chancellor Rachel Reeves has criticised the statement.
Working people are "worse off" despite the Government's promises, she told the Commons.
After describing the "damage" caused by the Conservatives, she said: "Nothing that has been announced today will remotely compensate.
"Mortgages rising, taxing eating into wages. Inflation high, with prices still going up in the shops. Public services on their knees. And too many families struggling to make ends meet.
"As the sun begins to set on this divided, out-of-touch, weak Government, the only conclusion that the British people will reach is this: after 13 years of Conservatives the economy is simply not working, and despite all the promises today, working people are still worse off."
Growth has hit a dead end under the Conservatives, Labour said.