Chancellor Jeremy Hunt has used his Autumn Statement to announce tax cuts and support for business investment.
The Chancellor announced what he called "the largest business tax cut in modern British history”- by making the “full expensing” scheme for businesses introduced in March permanent.
He also announced a cut in National Insurance from January, in a move that affects 27m people. And he said some two million self-employed people will benefit from the axing of class 2 national insurance and a cut to class 4 national insurance to 8%, saving them around £350 a year.
The Office for Budget Responsibility has forecast that the economy will grow by 0.6% this year and 0.7% in 2024, the Chancellor said.
He also repeated the message that there would be a £4.5bn Government fund to support strategic manufacturing.
We'll bring you the latest reaction to the Chancellor's Autumn Statement here - and you can also share your thoughts with us on LinkedIn.
Key Events
'Game-changing interventions' and 'missed opportunities' - West Midlands business leaders react to the Autumn Statement
See all the reaction here from business leaders from right across the West Midlands, with comments on the new investment zone and shake up in planning
Round-up of reaction from across the country
We've gathered reaction from across the country to today's statement from Jeremy Hunt:
Wales - plus an update on Welsh investment zones
New West Midlands investment zone 'to create 30,000 jobs'
A new 'investment zone' is set to be introduced in the West Midlands with the potential to create 30,000 new jobs over the next decade.
Chancellor Jeremy Hunt announced the move in his Autumn Statement today, with regional chiefs claiming it could inject £5.5 billion of growth into the West Midlands.
The zone will benefit from a mix of tax incentives, direct funding and business rate retention, with a focus on advanced manufacturing, green industries, health tech and underlying digital technologies.
The investment zone itself will cover the whole West Midlands but will be focussed on three specific sites - Coventry-Warwick Gigapark, Birmingham Knowledge Quarter and Wolverhampton Green Innovation Corridor
Innovation Zones for Wales
Chancellor Jeremy Hunt has confirmed that Wales is getting two investment zones that will each receive £160m of support aimed at boosting innovation and new job-creating investment, Sion Barry reports for BusinessLive Wales.
In South Wales a zone, which will benefit from funding and tax reliefs, is being established around Cardiff and Newport aimed at supporting the region’s compound semiconductor cluster. A zone is also being established around Wrexham and Flintshire to build on the region’s strengthens in advanced manufacturing.
Statement will land well with businesses - chamber chief
Henrietta Brealey, chief executive of Greater Birmingham Chambers of Commerce, said several of the measures in today's Autumn Statement would "land well" with firms battling cost pressures following a turbulent period.
It was pleasing to see the Chancellor back a number of our calls in a bid to drive investment and reduce cost pressures - namely the move towards full expensing, restructuring of pension funds, reforming the R&D tax reliefs system and extending business rate relief for hospitality and retail firms.
It was also reassuring to see the Chancellor commit to plans to simplify the planning process in order to speed up the delivery of infrastructure projects. Given the current labour market pressures, additional funding for apprenticeships is also welcome, however, offering businesses more flexibility on how they spend their levy funding would have made the measure even more effective.
In particular, the confirmation of the West Midlands investment zone is a major boost for the region, creating thousands of jobs for local people and offers a vital opportunity to leverage private sector investment.
Motor industry welcomes support for green vehicles
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), said: “Last Friday’s announcement of £2 billion for zero emission advanced automotive manufacturing was an unequivocal vote of confidence in the sector. The Chancellor’s statement today, with its focus on business growth, responds to our industry’s need for measures that allow UK automotive to compete for investment. The attractiveness of the UK will be bolstered by permanent full expensing and, given the importance of decarbonising the market and manufacturing, speeding up grid access.
“The UK proposition is enhanced by these measures but it is equally important that they can be accessed. The implementation of the Harrington Review on foreign direct investment must help simplify and speed up the process.
“We now look forward to the government’s advanced manufacturing plan, its battery strategy and how it will support consumers in making the switch to zero emission motoring, as we must not only make these vehicles locally but sell them.”
North West leaders react to Chancellor's statement
We're gathering reaction from actoss the country to today's autumn statement.
In the North West, Jon Robinson has gathered opinions from entrepreneurs, lawyers, financiers and other business leaders - read his full story here.
Employers' leader says Chancellor still faces a big challenge
Neil Carberry, REC chief executive, said: “The Chancellor has taken some significant pro-business steps today, but the downgraded growth forecasts prepared by the OBR show the scale of the challenge he faces. We need to get the UK powering on all its cylinders to really make progress. And we should remember that – despite today’s news – we are still heading for a post-war high on the tax burden over the next few years.
“Reducing employees’ NI is a great way to make work pay – and we also welcome the extension of the Restart programme and reform of fit notes as these steps will help ensure that we make the most of the UK’s labour force. Extending Restart was a key REC aim – it is a programme that effectively harnesses joint working between public and private sectors to get people into work.
“Making full expensing permanent is also great news for business and will drive investment – but only in the sectors that can really benefit from it. Services firms – the bulk of the economy – benefit far less. That’s why freezing the small business multiplier on business rates was an important step, especially when the substantial rise in the minimum wage will stretch many firms after a year of low growth and higher wages already. Changes to national insurance for the self-employed will help, too.
“By delivering real terms cuts in public investment, the Chancellor has put the ball into the private sector’s court. It is for business to drive growth, we agree. But the public sector must provide a framework. We saw some of that today in the support and incentives on offer – but it does not yet add up to the industrial strategy the country really needs. And in some areas – like skills – the investments announced today were woefully inadequate. Really engaging with firms on apprenticeship levy reform is long overdue.”
Autumn statement signals a change of direction
James Dickens, managing director of Birmingham-based housebuilder Wavensmere Homes said today's statement signalled a change of direction but there was too much flirting around the edges.
"We were hopeful of a reduction in corporation tax and are disappointed this hasn't been implemented," he said.
"Following last month's dramatic reduction in core inflation, we do welcome the Treasury's reductions to National Insurance and the 6.7 per cent Universal Credit increase for those on the lowest incomes.
"Hopefully, the overall focus on improving business productivity should see the OBR's revised-down growth forecasts for 2024 and 2025 improve.
"As a Birmingham-based housebuilder, we also welcome the Investment Zone announcements for the West and East Midlands, which is where the majority of our live schemes are located. We look forward to seeing how the 'mini Canary Wharfs' are to be delivered."
ICAEW: Statement positive but overall outlook is weaker
Responding to the Chancellor’s statement today, Suren Thiru, economics director at accountancy professional body ICAEW, said: “The Chancellor’s focus on helping to grow the economy is the right move given that the OBR’s latest forecasts paint a bleaker picture of the UK’s near-term growth prospects.
“The cut in national insurance will only make a small dent in the squeeze on people’s incomes given that many are being dragged into higher tax bands by the freeze on thresholds.
“Making the full expensing investment incentive permanent will help turbo-charge investment and productivity by giving companies the confidence and longer-term certainty needed to get key projects off the ground.
“Action on skills, business rates and late payments will also help businesses that continue to face a significant squeeze on their finances and ability to grow.
“The acid test of these myriad of supply side measures will ultimately be whether they are able to meaningfully increase the UK’s growth potential, otherwise we will remain more exposed to future economic shocks and living standards will remain constrained.”
'Refreshing to see prominent role for vocational learning'
"After decades of being in the shadows of universities, it was refreshing to see vocational learning play such a prominent role in the Chancellor's speech today," says Bekki Phillips, chief operating officer of Walsall-based training provider In-Comm Training.
"The headline will no doubt be the £50 million additional investment in pilots that encourage more apprenticeships into engineering and manufacturing. This is music to our ears. It was also pleasing to see an increase in wages for apprentices for their first year of training.
"This is significant and will mean that vocational learners will be further valued as members of the workforce rather than, what has traditionally happened, been regarded as cheap labour.
"Hopefully, this will encourage youngsters to embark on an apprenticeship rather than seek employment in areas, such as fast food and retail - sectors that might offer immediate higher returns but fewer long-term prospects.
"If there was one thing missing from the skills announcement, it was the urgent need to take the training levy a step further so that it goes beyond apprenticeships and fund qualifications and courses specific to industry needs.
"These are niche courses but vital if manufacturers are going to bridge the skills gap and tackle the need for emerging skills, such as robotics, automation, machine learning and augmented reality."
What will statement mean for northern tech sector?
Katie Gallagher, managing director of Manchester Digital, said:“There are quite a few positives to come out of today’s Autumn Statement announcements which will support our regional tech sector. These include a further £500m committed to fund more innovation centres for AI and simplified R&D Credits, as well as making full expensing permanent for all businesses.
“We also welcome the extra £50m funding over two years for apprentices in engineering and other high growth sectors. However, we believe that this must be accompanied by Apprenticeship Levy reform if we are to ensure that apprenticeships are successful, scalable and attractive to companies at all stages of growth.
“Overall, we would have liked to have seen more policies which enable all businesses and all workers to adopt digital technologies and opportunities for upskilling. Our region has a very strong tech sector, which with the right policies, can deliver an important boost to the local economy and create levers and opportunities to lift up the whole region.”
'People won't forget' - GMB Union
Trade union GMB says working people "won't forgive or forget" who trashed our country's economy.
General secretary Gary Smith said: "Today's measures go nowhere near fixing the damage this Conservative Government has done to people's finances.
"The cut to National Insurance will mean just over £150 a year to the lowest paid, a drop in the ocean when mortgages have doubled and energy bills are crippling household finances.
"Working people aren't fools and won't forgive or forget who trashed our country's economy."
'Decisions on buying and selling houses will be delayed'
Sam Mitchell, chief executive of Solihull-based online estate agency Purplebricks, said that by failing to cut stamp duty and cut it permanently, the Government had missed an opportunity to set the already fragile housing market on a clear path to recovery.
"Rumours will now grow that we will see a cut in the spring, meaning decisions on buying and selling will be delayed and the economy will suffer," he said.
"This has already been a difficult year for the property sector and the lack of support will threaten a recovery in 2024. Despite this, the silver lining is the confirmation of the extension to the mortgage guarantee scheme.
"Not only does this support the green shoots we are already seeing in the lending market but is great news for first time buyers, especially if coupled with the declining rates we are seeing in the market."
Engineering firm welcomes tax cut but says statement was 'politically driven'
Sean Keyes, CEO of Liverpool-based engineering firm Sutcliffe, said: "It was always likely that the Government was going to try to improve their image with this budget and make an impact for next year's general election. It appears that the reason they’re making these changes is politically driven and not by what the country needs.
“We will take any reduction in taxes as this is the highest tax burden in my working lifetime.
“I was disappointed not to see more about the Help to Buy ISA. Not only would this have helped first-time buyers, but it would have also benefited the construction sector as it would have encouraged people to save for a deposit which would have meant greater demand for more homes to be built. That said, I welcome the £40m investment in busting the housing development backlog and hope the Government sticks to its promise of being ‘a builder, not a blocker.’
“I also think increasing the National Living Wage is in fact a negative. While raising the National Living Wage in London may work, what it’ll do in the provinces is make employers think more closely about employing a young person, as it’d actually make more sense to employ somebody older with more experience for the same amount of money, making it even harder for young people to find their first employment - and that’s not what I want.
"What I’d prefer to see would be for the Government to put some actual funding into encouraging companies to upskill its young people, similar to the Kickstart programme, covering some of that initial cost associated with taking people out of unemployment and helping them into college and then the workplace.”
UK 'must decide where it wants to be world-leading'
Rosalind Gill, Head of Policy and Engagement at the National Centre for Universities and Business (NCUB) said: “Becoming an innovation nation requires the UK to attract, start and scale more innovative businesses. The raft of measures to pour more capital into UK science and technology companies are hugely welcome, as is the dedication of £20 million to support university spin-outs specifically. Today’s announcements will help us move towards greater prosperity.”
“We are also pleased that the Chancellor recognised Lord Harrington’s recommendations to attract foreign direct investment, with measures to make investment into the UK more attractive, but also better communicated and easier. Permanently committing to full expensing of business investment is an important move to boost levels of investment.”
“However, a barrier to growth is lack of consistent focus on specific economic strengths. The UK cannot be world leading in every area of scientific advancement. Therefore, to distinguish itself from the major global trading blocks of the US, Europe and China, the UK must make, and commit to, choices about the areas where it does want to establish a world leading status. Attempts to prioritise strengths through a succession of strategies have failed to gain momentum or longevity. The UK needs a clear, long-term economic plan, genuinely shaped collectively by businesses, universities and policy makers.”
Retail boss welcomes rates move - but says skills need more support
Nigel Oddy, CEO of the American Golf chain, said: "We welcome the chancellor’s extension of the 75% freeze on retail business rates for a further year. This is a win-win for consumers, retailers, and the economy. Rates relief will help to maintain our high streets and avoid potential increases in retail prices.
“However, it’s disappointing skills development has been overlooked. The chancellor could have helped futureproof the retail sector against talent shortages. Ecommerce and omnichannel trends are leading to greater demand for highly-skilled and tech-able workers in the sector. We would have hoped for wider support to advance skills development for all retail employees.”
Reaction starting to come in - Investec says Chancellor could have done more for business
Marc Wright, Head of Entrepreneurs, Private Office, Investec Wealth & Investment (UK) said: "The Chancellor’s £20bn tax relief/investment in business across the country is very welcome indeed and demonstrates that the Government is focused on Backing British Business. The Chancellor said last week that he wanted to deliver policies to promote growth and he has delivered on that.
“Entrepreneurs and business owners have been under considerable pressure over the past three years and SMEs have seen costs rising, and retail consumption falling, leading to a steep growth in insolvencies. The significant jump in Corporation Tax this year has taken the UK from very competitive versus OECD countries to ‘middle of the road’, and we would have liked to see a much more competitive landscape to do business in the UK by cutting Corporation Tax for all business.
“Even though Jeremy Hunt did not amend Corporation Tax we are very happy about the spread of directed measures supporting businesses such as reducing rates, improving access to Apprentices, and assisting the self-employed. The permanent implementation of full expensing of investment is very welcome indeed and should promote growth and productivity into 2024 and beyond.”
'Missed opportunity' to support night-time economy
Lyle Bignon works as night-time economy adviser in Birmingham, working on behalf of the Night Time Industries Association.
He said today's statement was "a missed opportunity to support the UK's fifth biggest industry".
"Despite the advice of leading night-time economy advocacy groups and industry bodies such as the Night Time Industries Association, which represents over 10,000 members across the country, the Chancellor has chosen to pursue policies which ignore the livelihoods of hundreds of thousands of hard-working people that power the UK's out of home leisure, and late night economies.
"The freeze on alcohol duty is a temporary fix which in isolation will barely scratch the surface in tackling the night-time economy's serious challenges for growth.
"However, we fully welcome the extension of business rates relief which may make the difference between some businesses - in particular, venues - staying afloat in the next financial year.
"During the current cost-of-living crisis, and with geopolitical events including the ongoing energy and fuel poverty crisis projected to continue well into 2024, the night-time economy needs more support from the Government and local authorities to simply survive, let alone grow.
"One of the biggest disappointments in Hunt's statement is no VAT relief, both of which would be lifelines to businesses struggling under extremely challenging market conditions."
Whisky body welcomes alcohol duty freeze
The Scotch Whisky Association (SWA) has welcomed the Chancellor's alcohol duty freeze, saying that the decision to cancel a further hike in duty following the 10.1% increase seen in August provides “much-needed stability” for distillers.
Our sister Scottish website insider.co.uk reports that SWA chief executive Mark Kent said: “The industry is raising a dram to the Chancellor’s decision to support Scotch Whisky producers by returning to the duty freezes that have supported the industry, incentivised investment, and boosted Treasury revenue."
'Sun setting' on this Government, Rachel Reeves says
Speaking in the Commons following the autumn statement, shadow chancellor Rachel Reeves said: “Today the chancellor has lifted the lid on 13 years of economic failure.
“The Chancellor claims that the economy has turned a corner, yet the truth is under the Conservatives growth has hit a dead end.
“What has been laid bare today is the full scale of the damage that this Government has done to our economy over 13 years.”
Working people are “worse off” despite the Government’s promises, she added.
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.”
The Victoria Society concerned over new development proposals
Concerning #AutumnStatement announcement of a new Permitted Development Right to allow any house to be converted into two flats provided the exterior remains unaffected. Hoping that this does not include listed buildings where important interiors can be threatened.
— The Victorian Society (@thevicsoc) November 22, 2023
Back to work plan
To deliver growth we need to expand our workforce.
— HM Treasury (@hmtreasury) November 22, 2023
That's why we’re helping Britain get Back to Work:
Tackling barriers to employment
Support for those with disabilities and long term health conditions
Strengthening sanctions
Reforming the welfare system pic.twitter.com/XTP8CDx5o6
Chancellor explained his full expensing plan
Earlier the Chancellor confirmed he would make full expensing permanent, describing it as the “largest business tax cut in modern British history”.
Jeremy Hunt told the Commons: “It means we have not just the lowest headline corporation tax rate in the G7 but its most generous capital allowances.”
He said the reform had been estimated to cost £11 billion a year, and stressed he had only brought it forward now it was “affordable”.
Mr Hunt claimed the tax change was “a huge boost to British competitiveness”, having told MPs: “The OBR say it will increase annual investment by around £3 billion a year and a total of £14 billion 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.”
The Chancellor went on to claim that measures throughout the autumn statement taken together would help to “increase business investment in the UK economy by around £20bn a year within a decade”.
Labour: Growth has 'hit a dead end'
Shadow chancellor Rachel Reeves said that growth had “hit a dead end” under the Tories, adding Jeremy Hunt’s autumn statement had “lifted the lid on 13 years of Conservative failure”.
Upbeat Chancellor says this is an Autumn Statement for a country that has 'turned the corner'
Conservative MPs were calling for tax cuts and support for business - and that's what the chancellor appeared to deliver today. That was an upbeat statement from the Chancellor, who kept referring to it as an "Autumn Statement for growth".
Now it's over to Shadow Chancellor Rachel Reeves, who unsurprisingly has a rather different view.
National Insurance rate cut by 2%
The main rate of emloyee National Insurance will be cut by 2% in a move the Chancellor says will see 27 million people each save hundreds of pounds a year.
He says the change will be made in January rather than at the start of the tax year in April.
Drinks industry welcomes alcohol duty freeze
The Wine and Spirit Trade Association's chief executive Miles Beale said: “The alcohol duty freeze comes as a huge relief to wine and spirit businesses and the hospitality sector who have taken a battering over the last few years.
“Following the introduction of an entirely new alcohol tax regime and huge hike in August, the latest data shows a worrying decline in sales, which concerns businesses of all sizes and which would result in less revenue for the Exchequer.
“A second duty rise would have been disastrous.
“We are pleased that the frustrations of consumers, who are fed up with never ending price rises, and of businesses struggling with the cost and complexities of the new system have been heeded.
“These are ongoing concerns about the impact of the new regime, which need to be kept under review. We implore the Chancellor and his team to lock in the freeze until at least the end of this Parliament. This will keep people in jobs and mean consumers will still be able to enjoy a drink at a price they can afford.”
Jeremy Hunt explains National Insurance moves
Chancellor Jeremy Hunt also announced changes designed to help self-employed workers, hailing them as the people who “kept our country running during the pandemic”.
Mr Hunt said: “Class 2 national insurance is a flat rate compulsory charge, currently £3.45 a week, paid by self-employed people earning more than £12,570 which gives state pension entitlement.
“Today, after careful consideration and in recognition of the contribution made by self-employed people to our country, I can announce we are abolishing class 2 national insurance altogether, saving the average self-employed person £192 a year.
“Access to entitlements and credits will be maintained in full and those who choose to pay voluntarily will still be able to do so.”
Mr Hunt also turned to class 4 national insurance paid at 9% on all earnings between £12,570 and £50,270.
Mr Hunt said: “I have decided to cut that tax by one percentage point to 8% from April. Taken together with the abolition of the compulsory class 2 charge, these reforms will save around two million self-employed people an average of £350 a year from April.”
Full expensing move is 'largest business tax cut in modern British history', Chancellor says
The Chancellor says the move to make full expensing permanent will be the “largest business tax cut in modern British history”.
