Autumn Statement 2023: Key announcements from chancellor at a glance

Published

1 year ago

November 22, 2023

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Here are the main announcements from Chancellor Jeremy Hunt’s autumn statement to MPs:

The Office for Budget Responsibility (OBR) predicts an average inflation rate of 2.8% by the end of next year and 2% by 2025.

The OBR sees “overall” UK growth in 2023 of 0.6%. Economic growth of 0.7% is expected in 2024, doubling to 1.4% in 2025.

The independent forecaster expects debt will increase as a percentage of gross domestic product (GDP), the measure of everything produced in the economy.

Borrowing will be 91.6% of GDP next year then 92.7% in the 2024 to 2025 financial year.

The minimum wage – which the government sometimes refers to as the national living wage – will rise to £11.44 per hour from April.

That’s an increase of £1.02 from the current rate of £10.42.

This rate will now apply to Britons over 21, bringing the eligible age down from 23. For anyone under 21, the minimum wage is lower – but this is also increasing, as is the lowest legal pay for apprentices.

Those aged 18 to 20 will get at least £8.60 an hour from April, which is an increase of £1.11. For those 16 and 17, and apprentices, the minimum pay will be £6.40 – a rise of £1.12 on last year.

Benefits will increase by 6.7%, the September rate of inflation, as is customary, with the increase coming into effect in April.

The chancellor announced he will increase the local housing allowance rate to the 30th percentile of local market rents, which he says will give 1.6 million households an average of £800 support next year.

Mr Hunt reaffirmed government plans to remove benefits and step up monitoring of welfare recipients in an effort to bring more people into work.

Jobseekers will have benefits such as free medicines and legal aid removed if they’re found not to be looking for work under the Back to Work Plan which aims to bring 1.1 million people back into work.

The headline rates of national insurance for employees are being cut by 2 percentage points, impacting about 27 million workers.

Employees earning more than £12,570 a year currently pay 12% national insurance on pay up to £50,270. That will fall to 10%.

The cut will be in effect from 6 January.

For the self-employed, the chancellor said he is making reforms to the way national insurance is paid to save around 2 million people an average of £350 per year.

He said he is abolishing Class 2 national insurance – which he says saves £192 a year – for the self-employed.

Meanwhile, Class 4 national insurance will be cut from 9% to 8% on earnings between £12,570 and £50,270.

State pension payments are to rise by 8.5% to £221.20 a week, worth almost an extra £900 a year. The triple lock will be “honoured in full”.

Work to establish a pension pot for life scheme will be begin, giving workers the option to nominate the fund their employer pays into, which can follow them as they move throughout their working life.

A further £500m will be invested over the next two years to fund further “innovation centres to help make us an AI powerhouse”, Mr Hunt said.

Moreover, a “new, simplified” tax relief for research and development will combine the existing R&D Expenditure Credit and SME schemes.

Through that merged scheme, Mr Hunt said he will also cut the rate at which loss-making companies are taxed from 25% to 19%.

The full expensing scheme – currently due to expire in 2026 – will be made permanent.

This allows firms to write off the entire cost of spending on new machinery and equipment, while also saving 25p from every pound spent on other types of investment.

The 75% discount on business rates – the tax paid on non-domestic properties – of up to £110,000 for firms in retail, hospitality and leisure will be extended for another year.

Mr Hunt claims this will save the average independent pub more than £12,800 next year.

All alcohol duty will be frozen until August. That means no increase in duty on beer, cider, wine or spirits.

Mr Hunt pledged to provide £7m to tackle antisemitism in schools and universities. To be repeated is a £3m uplift to Jewish organisation Community Security Trust.

In an attempt to cut the time it takes for planning applications to be granted for businesses, the chancellor said he will allow local authorities to recover the full costs of major business planning applications if they meet guaranteed faster timelines.

But if they fail, businesses will be refunded in full and have their planning application processed free of charge in what the chancellor described as a “prompt service or your money back” promise.

People living closest to new pylons and electricity substations will receive up to £10,000 off their bills over 10 years.

The government will meet its NATO commitment of spending 2% of gross domestic product (GDP), the measure of everything produced in the economy, on defence.

The chancellor also said he will also extend national insurance relief for employers of eligible veterans for another year. This will provide £10m to support the Veterans’ Places, Pathways and People programme, he added.

Freeports and investment zones will be given 10 years of “financial incentives”, rather than five as currently planned.

There will also be a further three investment zones, Mr Hunt said, in the West Midlands, East Midlands and in Greater Manchester, while a second investment zone will also be set up in Wales.

UK

Ellis Cox: Mother appeals to catch son’s killer on birthday anniversary

Published

53 mins ago

January 18, 2025

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Ellis Cox: Mother appeals to catch son's killer on birthday anniversary

Fresh appeals have been made for information on what would have been the 20th birthday of Ellis Cox, who was shot dead in Liverpool last June.

A number of people have been arrested in connection with the murder at Liver Industrial Estate, but no one has been charged yet.

The 19-year-old’s family and police have paid tribute to him and called for those with information to come forward.

He was shot in the back after a confrontation between his friends and another group of up to three males on Sunday 23 June.

His mother Carolyn paid tribute in an appeal to coincide with what would have been his 20th birthday.

“He was so kind… so laid back, so calm, so mature for his age. And he was just funny. Very funny.

“He was my baby… no mum should have to bury a child. He was my life. And I don’t know what to do without him.”

Meanwhile, his aunt Julie O’Toole said he was “the sort of person I think you’d be hard pressed to find anyone to say anything negative about. He was loyal, fiercely loyal… everything was about his family”.

To pay tribute to Ellis, Liverpool City Council will be lighting up the Cunard Building and Liverpool Town Hall in orange on Saturday.

Detective Chief Inspector Steve McGrath, the senior investigating officer, spoke about the information gathered so far, six months on from Mr Cox’s murder.

“I’m satisfied that the group that he was with was probably the target… and I would say that’s got something in relation to do with localised drug dealing in that area. But Ellis had no involvement in that whatsoever,” he said.

He added that police are looking for “really significant pieces of evidence now”, including “trying to recover the firearm that was used in relation to this, looking to recover the bikes that were used by the offenders”.

Mrs Cox also appealed for people to come forward with information.

“If you know anything, don’t let us get to [his] next birthday and still know nothing.

“We need to get justice for Ellis. And we need to get the people who took him from us off the streets.”

UK

Manchester United legend Denis Law dies aged 84

Published

12 hours ago

January 17, 2025

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Manchester United legend Denis Law dies aged 84

Former Manchester United and Scotland footballer Denis Law has died, at the age of 84.

In a statement, his family said: “It is with a heavy heart that we tell you our father Denis Law has sadly passed away. He fought a tough battle, but finally, he is now at peace.

“We would like to thank everyone who contributed to his wellbeing and care, past and much more recently.

“We know how much people supported and loved him and that love was always appreciated and made the difference.”

The Aberdeen-born footballer previously announced in August 2021 that he had been diagnosed with dementia.

A prolific striker, Law scored 237 goals in 404 appearances for Manchester United, for whom he signed for a then-British record transfer fee in 1962.

He is the only man to have two statues dedicated to him at Old Trafford – one on the Stretford End concourse, the other as part of the United Trinity statue overlooking the stadium’s forecourt beside fellow great George Best and Sir Bobby Charlton.

The only Scottish player to have won the Ballon d’Or award, in 1964, he was also part of United’s triumphant campaign in the 1968 European Cup – in which they became the first English club to ever win the competition.

In a statement, the club said: “Everyone at Manchester United is mourning the loss of Denis Law, the King of the Stretford End, who has passed away, aged 84.

“He will always be celebrated as one of the club’s greatest and most beloved players.

“The ultimate goalscorer, his flair, spirit and love for the game made him the hero of a generation. Our deepest condolences go out to Denis’s family and many friends. His memory will live on forever more.”

Wayne Rooney, former United captain and the club’s all-time record goalscorer, described Law as a “legend”.

“Thoughts with all Denis’s family and friends,” he said in an online post.

Another former United captain, Gary Neville, said: “A great footballer and a great man. It’s a privilege and an honour to have spent time in your company. The King of the Stretford End.”

A tribute from the Scotland national team said Law was “a true great”.

“We will not see his likes again,” it said.

Law also played for Huddersfield Town, Manchester City, and Italian club Torino during his club career, and made 55 appearances for Scotland, scoring 30 goals for his country.

Manchester City said in a post on X: “The whole of Manchester, including everyone at City, is mourning with you. Rest in peace, Denis.”

UK

FTSE 100 closes at record high

Published

13 hours ago

January 17, 2025

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The UK’s benchmark stock index has reached another record high.

The FTSE 100 index of most valuable companies on the London Stock Exchange closed at 8,505.69, breaking the record set last May.

It had already broken its intraday high at 8532.58 on Friday afternoon, meaning it reached a high not seen before during trading hours.

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The weakened pound has boosted many of the 100 companies forming the top-flight index.

Why is this happening?

Most are not based in the UK, so a less valuable pound means their sterling-priced shares are cheaper to buy for people using other currencies, typically US dollars.

This makes the shares better value, prompting more to be bought. This greater demand has brought up the prices and the FTSE 100.

The pound has been hovering below $1.22 for much of Friday. It’s steadily fallen from being worth $1.34 in late September.

Also spurring the new record are market expectations for more interest rate cuts in 2025, something which would make borrowing cheaper and likely kickstart spending.

What is the FTSE 100?

The index is made up of many mining and international oil and gas companies, as well as household name UK banks and supermarkets.

Familiar to a UK audience are lenders such as Barclays, Natwest, HSBC and Lloyds and supermarket chains Tesco, Marks & Spencer and Sainsbury’s.

Other well-known names include Rolls-Royce, Unilever, easyJet, BT Group and Next.

FTSE stands for Financial Times Stock Exchange.

If a company’s share price drops significantly it can slip outside of the FTSE 100 and into the larger and more UK-based FTSE 250 index.

The inverse works for the FTSE 250 companies, the 101st to 250th most valuable firms on the London Stock Exchange. If their share price rises significantly they could move into the FTSE 100.

A good close for markets

It’s a good end of the week for markets, entirely reversing the rise in borrowing costs that plagued Chancellor Rachel Reeves for the past ten days.

Fears of long-lasting high borrowing costs drove speculation she would have to cut spending to meet self-imposed fiscal rules to balance the budget and bring down debt by 2030.

Long-term government borrowing had reached a high not seen since 1998 while the benchmark 10-year cost of government borrowing, as measured by 10-year gilt yields, was at levels last seen around the 2008 financial crisis.

The gilt yield is effectively the interest rate investors demand to lend money to the UK government.

Only the pound has yet to recover the losses incurred during the market turbulence. Without that dropped price, however, the FTSE 100 record may not have happened.

Also acting to reduce sterling value is the chance of more interest rates. Currencies tend to weaken when interest rates are cut.