Prefer to talk?
9:00 to 17:30 (Weekdays)

Autumn Statement 2023 - What does it mean for businesses?

The Autumn Statement 2023 has been set out with the aim of restoring the stability of public finances. But what does this mean for businesses?


Following the fall in inflation and a more resilient growth than expected, the government is looking to return some of the money to taxpayers, ensuring people are able to keep more of what they earn.

As part of this, the main rate of Class 1 National Insurance Contributions (NICs) will be cut from 12% to 10% from 6 January 2024.

The government is also cutting taxes for the self-employed from 6 April 2024 through reducing the Class 4 NICs from 9% to 8% and simultaneously abolishing the Class 2 NICs to reform and simplify the tax system. It is predicted that both of these changes will benefit approximately 2 million self-employed individuals, with savings of £350 on an income of £28,000 in 2024-25.

Supporting employees

Businesses need to look out for an increase in the National Living Wage, which will increase by 9.8% to £11.44. At the same time, the age threshold is being lowered from 23 to 21 years old. The increase is expected to add £1,800 to the annual earnings of a full-time worker, and is expected to benefit over 2.7 million workers.

Over the next 5 years, the government’s Back to Work Plan will aim to support individuals who are long-term sick and disabled, and long-term unemployed. The aim is to help them manage their health conditions and stem the flow of sickness-related inactivity. Part of the plan is to reform the fit note process to support people in resuming work after a period of illness.

Business in general

The government is backing British business with an aim to drive long-term economic growth. The overall aim here is to remove barriers to investment and cut taxes for businesses.

The government is making permanent the super deduction to incentivise business investment, first introduced in 2021. Following its introduction, investment has been faster in the UK than in any other country in the G7.

The government is making changes to simplify and improve R&D tax reliefs to help drive innovation in the UK. 

The government is announcing a business rates support package worth £4.3 billion over the next five years, with the aim of supporting businesses and the high street.

Business rates may increase for some following the standard rate multiplier being uprated in line with Consumer Price Index (CPI) inflation. However, large retailers are expected to benefit from tax relief as a result of full expensing.

Recent Blog Posts