Chancellor Jeremy Hunt announced his Autumn Statement in November 2022.
It contained numerous tax rises and spending cuts, many of which will have a profound impact on British businesses.
In this post we’ll revisit some of the key points from the 2022 Autumn Statement, and highlight the dates these are expected to come into play.
You can also read our guide to what the Autumn Statement means for SMEs.
2023 Minimum Wage and Tax Allowance Changes
From April 2023, the legal minimum wage for people aged 23 or over will rise from £9.50 to £10.42 an hour. Also, both the income tax personal allowance and higher rate thresholds, along with the main National Insurance and inheritance tax thresholds, will be frozen until April 2028.
Windfall Taxes on Energy Companies
From January 2023, a new 45% tax will apply to companies that generate electricity. Also, until March 2028, the windfall tax on profits of oil and gas firms will be 35%, rising from 25%.
Inflation Forecast for 2023
The UK saw an inflation rate of around 9.1% in 2022. In 2023 the rate’s predicted to be 7.4%.
Unemployment Prediction for 2023 and 2024
The government expects unemployment to rise to 4.9% by 2024.
Recession and Economic Growth in 2023 to 2025
The government’s expecting the size of the economy to shrink by 1.4%, compared to an overall growth of 4.2% in 2022. By 2024 they are predicting to see 1.3% growth, which should rise to 2.6% by 2025.
Business Rates and Taxes
Before the budget, there was talk of a new tax on online sales. These plans have now been scrapped. To reduce costs, the government has also removed import tax on more than 100 different goods.
The government has also announced a support package worth £13.6bn over the next five years to help firms with business rates. This support will apply from April 2023, and will include:
- A freeze on the business rates multiplier until April 2024.
- Extended and increased relief for retail, hospitality and leisure businesses.
- Downwards transitional reliefs caps have been abolished, so that businesses can benefit from lower bills straight away.
- A new, more generous Supporting Small Business scheme to protect businesses who are ineligible for Small Business or Rural Rate Relief.
Vehicle Excise Duty for Electric Cars and Vans from 2025
In a move that may make life more difficult for fleet and courier businesses, from April 2025, electric cars and vans will have to pay vehicle excise duty. Zero emission vans will move to the rate for petrol and diesel light goods vehicles. This is currently £290 a year for most vans.
Is Your Business Ready For 2023?
Even with the support available for businesses, rising taxes, inflation and energy prices will make the next few years mean that many individuals and businesses are going to struggle.
Businesses of all sizes will be looking for ways they might save money. But there are some things that should never be considered for cuts, and we maintain that SMEs should consider business insurance as an integral part of their operations.
If the past few years have taught us anything, it’s that the world is a chaotic and unpredictable place. That’s why you need insurance – as an essential safety net to ensure that your business will be able to bounce back from almost any unforeseen event.
At Anthony Jones, we understand that these are trying times for our insurance buyers. We remain, as ever, committed to supporting all our current and prospective customers with the best insurance advice. Indeed, it’s at times like these that our expert advice can actually help you save money.
Read more about the benefits of working with Anthony Jones Insurance Brokers. And if you have any other questions, don’t hesitate to get in touch.