The Chancellor has delivered his Autumn Statement speech.

Read our expert analysis below.

Key announcements

Economy and spending
  • It was predicted, in March, by the OBR that borrowing would now be 100% of GDP but it is in fact 94%. Forecast is now as follows: 
    • 2024/25 91.6%
    • 2025/26 92.7%
    • 2026/27 93.2%
    • 2027/28 92.8%
  • The OBR has forecast growth for our economy in each of the next five years as follows:
    • 2023 – 0.6%
    • 2024 – 0.7%
    • 2025 – 1.4%
    • 2026 – 1.9%
    • 2027 – 2%
    • 2028 – 1.7%
  • Inflation currently stands at 4.6%, with the OBR predicting that this will fall to 2.8% by 2024 and the Government’s target of 2% by 2025.
  • £500 million to be invested in the AI sector, funding innovation centres.


Cost of living measures
  • Universal credits - to increase by 6.7% from April 2024 in line with the inflation rate for September 2024.
  • Local Housing Allowance - rate to be increased to the 30th percentile of local market rents. This will give 1.6 million households an average of £800 of support next year.
  • Tobacco and alcohol duties - duty on hand-rolling tobacco to be increased by an additional 10% above inflation and freeze on all alcohol duties until August 2024.
  • State pension - from April 2024 the full state pension will be increased by 8.5% to £221.20 per week, worth up to £900 per year, honouring the triple lock.
Tax measures
  • R&D tax reliefs – single merged scheme to go ahead as planned, but for loss-making companies the ‘notional tax’ suffered on the 20% R&D credit will be at a tax rate of 19% rather than 25%, so the ‘net’ credit received will be 16.2p for every £1 of R&D expenditure rather than 15p. Also, the definition of ‘R&D intensive’ companies (which will continue to benefit from tax incentives at a more beneficial rate) is amended: a company will be R&D intensive if its R&D expenditure is at least 30% of its total expenditure, rather than 40%.
  • Business rates - small business multiplier to be frozen for a further year and 75% discount for retail and hospitality businesses to be extended for a further year.
  • Self employed
    • Class 2 NIC will be scrapped from April 2024.
    • Class 4 NIC will be reduced from 9% to 8% resulting in an average saving of £350/year from April 2024.
  • Full expensing of capital investment, allowing companies to offset spending on plant and machinery against profits, is to be made permanent rather than expiring in March 2026 as previously announced.
  • Employment tax – employee’s class 1 national insurance rate to be cut from 12% to 10% from 6 January 2024. Resulting in a saving of £450 per year for an employee earning £35,000.
Other announcements
  • Any business bidding for government contracts will need to show they are paying their own invoices within 55 days, decreasing to 30 days.

  • National living wage increased by 9.8% from April 2024 to £11.44 per hour which results in an average £1,800 increase for a full time worker.

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Download Tax Facts 2023/24

Content image: /uploads/team/unknown.jpg Nick Haines
Nick Haines
Partner, Tax and Property
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Content image: /uploads/team/unknown.jpg David Clift
David Clift
Partner, Innovation Taxes
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Content image: /uploads/team/unknown.jpg Glenn Collingbourne
Glenn Collingbourne
Director, Tax
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Content image: /uploads/team/unknown.jpg Pip Cusack
Pip Cusack
Associate Director, Farms and Estates
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Content image: /uploads/team/unknown.jpg Annie Cook
Annie Cook
Manager, Tax
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