Autumn Statement 2023: Tax cuts welcome but will they prompt business growth?

Tony Medcalf, tax partner, said:

“The move to make ‘full expensing’ a permanent measure is the most significant of today’s announcements as it will offer business owners certainty to plan and make those key investments that can grow their business and the economy.

“The chancellor also announced an extension of business rates relief, including a freeze on the small business multiplier, a £4.5bn funding package to promote the development of green technologies, measures to tackle late payment among small businesses and further funding for freeports and low-tax investment zones.

“From a personal taxation standpoint, the significant reduction in National Insurance contributions for the self-employed will be roundly welcomed and the cuts to employee National Insurance from 12% to 10% also went further than expected.

“However, the question remains – will today’s decisions prompt significant economic growth in the coming weeks, following more than a year of rising interest rates, high energy costs, and stagnation in the economy?

“My gut feeling is the chancellor has resisted the temptation to make even bigger, headline-grabbing fiscal changes today so that he can save them for the spring budget. That will be one of the last major opportunities to create an ideological difference between the government and its opposition parties before the UK goes to the vote.”

Read the latest Autumn Statement 2023 commentary

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