Jeremy Hunt used his Autumn Statement to announce tax cuts, tighter welfare rules and further measures aimed at getting more people into work.
The speech, delivered to the Commons on Wednesday, is the Chancellor's main opportunity outside the budget to make tax and spending announcements. Mr Hunt used the statement to introduce changes aimed at reviving the 海角视频's struggling economy and the Tories’ election chances.
The Chancellor said the full package has 110 measures he hopes will boost growth. Below, BusinessLive has rounded up the reaction of business leaders from across the North West and beyond to the Autumn Statement.
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Brabners
Chief executive Robert White said: "Businesses will undoubtedly welcome the Chancellor's move towards prioritising growth. However, if we are to unlock the true potential of the regions, and particularly the North, we require a consistent investment-led approach that transcends short-term political cycles.
"We welcome the extension of the Investment Zones programme – which has doubled the length of the government’s funding commitment to cities like Liverpool, Manchester and Leeds to 10 years – and initiatives like the £4.5bn investment to boost 海角视频 manufacturing in strategic sectors announced last week, which represents an opportunity to generate sustainable sector-led growth and to attract even more transformational inward investment.
"With Lancashire now set to benefit from a Level 2 devolution deal and further de-centralisation anticipated through the government’s trailblazer deals, it is important that purpose-led businesses continue to play their part in delivering positive change – strengthening the North’s proposition on skills, sustainability, innovation and society – in the quest to boost productivity and ultimately deliver inclusive growth and prosperity for the region."
Manchester Digital
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Managing director Katie Gallagher 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."
Together
Corporate sales director Elliot Vure said: "Hunt's focus on the politics over the economics wasn't quite the full meal the 海角视频 public have been hungry for in the week's leading up to today’s statement. But could this be just an appetiser of what's to come in March's budget. A promise to shake-up the red tape around planning applications is a smart move as opportunity for the nation's developers must be unlocked.
"Commercial and residential developers know the scale of the opportunity across the 海角视频. However, for years, the Achilles heel has been the time drain on getting plans approved, finances secured and labour and building underway. More details are needed but knowing local authorities will be able to recover the full costs of major business planning applications, in return for meeting faster timelines should reenergise the Levelling Up agenda.
"While there was some comfort for renters with the rise to the Local Housing Allowance rate to average £800 next year and a £450m allocation to the local authority housing fund, so many other key areas were notably glossed over. Having been tempted by mouth-watering mortgage morsels in headlines all week, today failed to deliver. It is vital proper Government support is given to open doors in what's still a tough economic environment."
Bruntwood SciTech
Director of strategic partnerships Jessica Bowles said: "Sustained investment in R&D and innovation across the 海角视频's growth sectors is critical to the future of the economy, and so it's positive to see this reflected in the Autumn Statement. In particular the confirmation of the Greater Manchester and West Midlands Investment Zones – of which two of our most significant and long-term projects, ID Manchester and Birmingham Knowledge Quarter, will play a central role – is a major step forward.
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"With the Liverpool, West Yorkshire and South Yorkshire Investment Zones previously announced, there is no time to lose in progressing these and others into delivery as soon as possible – including in Glasgow where we are advocating for our transformation of the city’s iconic Met Tower to play a key part.
"These initiatives have a greater chance of success if supported by the genuine devolution of power. With that in mind, we welcome the new MoUs on the single settlement funding arrangements for Greater Manchester and West Midlands Combined Authorities. More responsibility, powers and funding to our city regions is a proven way to generate quicker returns and grow the economy in a sustainable way, so we hope to see the government progress the Trailblazer Deals at pace and extend them to other areas.
"More long-term, we would now like to see the government set out a detailed strategy to enable science and technology businesses to align themselves with its objective of becoming a science superpower by 2030. Industries like life sciences will benefit from the £4.5bn funding pot announced for strategic manufacturing alongside the government’s continued focus on evolving the tax regime for R&D-led SMEs. We also welcome the new Mansion House Reforms which will facilitate pension fund investment into high growth sectors, including life sciences.
"We will be continuing to invest in the 海角视频's knowledge economy, championing growth and delivery working alongside our city partners, universities and central government."
Hargreaves Lansdown
Lead ESG analyst Dominic Rowles said: "While tax cuts took centre stage in Jeremy Hunt's Autumn Statement, some efforts were made to enhance the Government's patchy record on sustainability. They are a welcome response to a series of recent policy shifts that seemed to pose serious challenges to the Government's 2050 net zero target.
"Among the top commitments were an initiative to introduce a cash sweetener of up to £10,000 over 10 years for those living closest to new energy generation and transmission infrastructure. It's hoped this plan will speed up planning approvals for new infrastructure projects, which have been beset with delays and increased costs in recent years.
"The Chancellor also restated his commitment to invest £4.5bn between 2025 and 2030 in strategic manufacturing, which includes £2bn for zero emission investments in the automotive sector, supporting the manufacturing, supply chain and development of zero emission vehicles. This could go some way to placating those automakers that needed to alter their investment plans when the government delayed plans to prohibit the sale of new combustion engine-powered cars in September.
"There will also be £960m for a new green industries growth accelerator to support clean energy manufacturing including offshore wind, nuclear, Carbon Capture & Storage and hydrogen."
Liverpool Chamber
Chief executive Paul Cherpeau said: "The Chancellor rightly recognised that current economic growth is moderate at best and can only be improved by increased productivity and investment. Innovation is a key pillar of our city region economy, so we welcome any targeted measures that encourage R&D and boost investment in areas such as technology, advanced manufacturing, visual arts and clean energy.
"Extending financial incentives to Investment Zones and Freeports from five to 10 years should also help to encourage businesses to take longer term planning and growth decisions. If delivered, reforms to the planning process and greater access to the energy grid promise to accelerate business investment and businesses will be encouraged by the decision to make full expensing a permanent measure.
"It is also good to see the Chancellor taking active steps to reduce the scourge of late payments and adopting a more responsible approach in government procurement processes. Our members in hospitality, retail and leisure will be relieved to see the 75% business rates relief for eligible operators extended, while also freezing the business rates multiplier for those sectors during a very challenging time for many operators.
"Businesses will certainly want much more clarity on the proposed requirement for employers to pay into existing pensions schemes for new staff and it is unclear how such a policy might work in practice. While we welcome the promised two-year pilot to understand ways to increase apprenticeships in sectors of acute need, we would have liked the Chancellor to go further and enable an employer-led curriculum and a programme of education investment that offers a long term plan that employers can trust and create work-ready people, rather than the piecemeal approach of recent years."
GoSimpleTax
Technical director Mike Parkes said: "It's positive to hear the economic contribution and hard work of the Self Employed recognised by the Government today – particularly their efforts during the pandemic, when the government’s response and support was limited and slow. The self-employed will no doubt welcome the decision to abolish Class 2 National Insurance, along with the 1% cut in Class 4 National Insurance - however, while the changes will put money back into people's pockets, there is far more to be done to ensure that the lowest paid are taking home more of their hard-earned money.
"While today's changes were hailed as a simplification of the tax system, in truth there’s much more to be done to encourage entrepreneurship and make self-employment - and the host of risks and challenges it entails - appeal to the next generation of business owners."
Avrenim
Chief executive Simon Harris said: "With today's Autumn statement, there has to be clear consideration of the 海角视频’s aspiration to be seen as the world leader in green technology. There are growing concerns about the 海角视频's capacity to retain its perceived aspirational position in the global race toward achieving net zero, other nations are seriously investing in a national green industrial strategy, actively capitalising on the prospects emerging from widespread industrial decarbonisation.
"There's no denying that the 海角视频 lags behind in incentivising the adoption and acceleration of green technology. Increased strategic investment in infrastructure may translate to heightened demand for facility management services, however, more needs to be done to encourage the adoption of eco-friendly solutions to solve more complex problems. If we look across the water to the Biden administration who introduced a $369bn investment plan in green technology last year, this demonstrates proper commitment. Where is that level of commitment within our 海角视频 government net zero roadmap?
"The budget is a pivotal factor in shaping the industry in the run-up to an expected general election. From decarbonising the NHS estate and investing in renewable energy sources to fuel our hospitals and trusts, to raising the minimum wage to over £11, these are positive changes on the whole for many - and while I absolutely welcome more investment in making large facilities more eco-friendly - for the facilities management sector in general, the next 6-12 months could be crucial as its trajectory may change.
"With the Net Zero agenda taking precedence, the implementation of effective measures to promote greener growth will be essential to ensuring the 海角视频 doesn’t fall behind other countries when it comes to incentivising investment that is good for our cities, society, the environment as well as our economy and we need to put a plan in place to ensure we don’t wander into low growth and lost opportunities.
"Research shows that not only would the right strategy with the right backing deliver on the net zero ambitions, but it could also contribute some £74bn into the 海角视频 economy and given our current economic outlook, that would be a very welcome boost. That said, I welcome the £960m worth of investment into growing the green sector and the £4bn worth of investment over the next five years into more strategic investment into manufacturing with a net zero focus."
Aon
Partner Alex Beecraft said: "Today's announcement is a landmark moment for the DB pensions industry that reflects the improved funding situation facing many schemes. If enacted, new flexibilities on recovering surplus could make it easier for sponsors to obtain a refund on the significant contributions made over the last decade, while preserving ongoing member experience and benefit flexibility.
"Key to this will be testing the strength of its sponsor, capital strategy and governance arrangements to show that pensions will remain secure outside of insurance."
PM+M
Tax partner Jane Parry said: "In today's Autumn Statement, the Chancellor lauded the Government's achievement of meeting its target of halving inflation. No one could argue that is a good thing, but some caution is needed as most of that drop has been driven by falling energy prices, and prices are still rising – albeit at a slower rate.
"However, thanks to the OBR's reassessment of the public finances, he now has billions of extra economic firepower that has come at just the right time for the Tories as we enter an election year."
Croner-i
Managing director Ben Chaplin said: "Many businesses will be indifferent to today's announcements. There are some good incentives around investment (if they have the profits to invest), and good news on some of the rate reliefs offered for the high street and hospitality, but then you’ve got the minimum wage increase and the impact of measures like employees controlling where their employer’s pension contributions are paid, which could be quite an administrative burden.
"The tax reliefs are a positive, but we’ve seen HMRC opening a lot of enquiries into claims for things such as R&D tax credits. So for businesses to access the full relief they’re likely to need to seek professional advice. Many SMEs will also be impacted by enforced wage rises and potential administrative challenges around employer pension contributions, although we’ll need to see more detail on this to know what it entails in reality.
"The widening gap in National Insurance contributions between employees and those who are self-employed is likely to increase status disputes, especially for those working in the gig economy. As we've seen in recent days with the Supreme Court ruling that Deliveroo drivers are not employees, this issue is one that will continue to rumble on as people seek to clarify employment status.
"Combine this with IR35, another area that SME’s need to be wary of and HRMC is keen to enquire into, and we’re likely to be talking about this for some time to come. Cutting the main rate of national insurance from 12% to 2% does give some respite for workers, but does it really stimulate the economy or just ease the pain caused by rising prices and interest rates? That remains to be seen.
"Overall this appears a positive set of announcements for all, but are they enough to really make a difference? It's that fine balance of giving too much given the economic position and national debt, having said that, the government will have seen a boost to tax coffers given rising prices and wages which has allowed them to give some of that back. Individuals are still however carrying a significant tax burden, but hopefully this sets us on a path to reduce that. Is he leaving the path open to some more headline grabbing tax cuts next April? I would think so."
Grant Thornton 海角视频 LLP
North West managing director Carl Williams said: "Today's announcements of funding and extended tax breaks for freeport and investment zones will be welcomed. The new Investment Zone focused on Advanced Manufacturing in Greater Manchester is particularly good news and should significantly boost the Atom Valley vision, to create thousands of skilled jobs.
"As a nation, we really can’t do enough to address the skills gaps in a wide range of industries so the £50m to support apprenticeships in engineering and other key sectors is going in the right direction. Many 海角视频 regions have focused on developing the science and innovation economy and making an additional £500 million available to fund innovation centres to make the 海角视频 an AI powerhouse sounds progressive.
"Decarbonising how we live and work is the challenge of our times and whilst there are some encouraging measures around clean energy to access the grid, doubtless there is scope to do a great deal more."
PwC
Capital allowances lead Portia Pierrel said: "Confirmation that the full expensing regime will be made permanent will be massively welcomed by businesses given the increase in the corporation tax rate coupled with the super-deduction relief coming to an end earlier this year. For businesses that are investing this is the equivalent of a significant cut in the effective rate of corporation tax in the year of investment, rather than spreading it over the life of the investment.
"The relief provides a significant cash flow benefit and enables businesses to obtain 100% relief in the year of investment on qualifying plant and machinery investments rather than spreading it over a number of years. Making the relief permanent allows more time to plan and will provide much needed certainty on longer term and staged investment plans that the short lived super-deduction relief was not able to offer.
"Similarly, the announcement that the tax advantages that the new 'Investment zones' and 'Freeports' will offer will be extended to 10 years rather than the current five year window will provide businesses with the confidence and flexibility to make long term 海角视频 investments beyond 2026. We also had confirmation that the merging of the R&D schemes will go ahead. This should bring some welcome simplification but there is still uncertainty on how these rules will apply to subcontracted R&D which could result in subcontractors (those hiring the R&D staff) losing out.
"Promoting high levels of business investment is critical to help stimulate growth and encourage long term investment in the 海角视频. Full expensing is expected to increase annual investment by £3m a year and £14bn across the forecasted period. This certainty and longer term vision on investment policy announced today is a welcome signal that the 海角视频 is open for business."
Greater Manchester Chamber of Commerce
Deputy director of research and information systems Subrah Krishnan Harihara said: "Against a backdrop of stubborn inflation, high interest rates and a stagnant economy, it was unsurprising that the Chancellor Jeremy Hunt attempted to signal fiscal prudence while also taking measures to stimulate growth and simultaneously addressing the important political consideration of a general election in about 12 months.
"Despite the Spring Budget in March, which Mr Hunt had badged 'A Budget for Growth', economic growth has faltered. In Q3 2023, 海角视频 GDP flatlined (0% growth) following a mere 0.2% growth in Q2 2023. And, contrary to previous expectations, inflation had proven to be persistent.
"While the Prime Minister's ambition to halve inflation has indeed materialised, businesses and households are facing the brunt of higher interest rates and lower disposable incomes - evidenced by the fact that retail sales for the three months to October 2023 were 1.8% lower compared with the previous three months. The tax burden on households and businesses have also become higher because of the freeze in income tax thresholds and higher rates of corporation tax.
"This potent mix of poor indicators set the scene for a gloomy outlook, which was confirmed today. GDP growth in 2023 is expected to be 0.6%, while in 2024 growth is forecast to be 0.7%. Forecasts from the IMF and OECD show that the 海角视频 is, with the exception of Germany, set to record lowest growth amongst the G7 countries.
"Consequently, growing the economy had to be at the centre of today's Autumn Statement and the Chancellor devoted a lot of his speech to this issue. In keeping with this theme, today's Statement was badged "Autumn Statement for Growth" and said to include 110 measures to help grow the economy."
Steven Hunt Associates
Managing director Neil Baines said: "After the recent political turmoil and set against a backdrop of serious unrest, today's autumn budget has put into focus the need for more support for businesses and support for individuals still affected by high energy costs. While the Chancellor has recognised the importance of the Net Zero agenda, it goes without saying that more needs to be done to demonstrate that the climate emergency and measures to help cut fuel bills are at the top of its agenda, with policies and incentives that prioritise the decarbonisation of the construction industry for businesses and for homeowners.
"Clients' preferences are shifting towards green construction methods, and we need investment in helping people cut energy use to lower fuel bills - while the 海角视频 construction industry faces a unique set of challenges in 2024, we need to prioritise sustainability, of which this budget doesn’t do enough. With this in mind, I welcome the £4bn worth of investment over the next 5 years into more strategic investment into manufacturing with a net zero focus."
Currys
Chief executive Alex Baldock said: "It is deeply disappointing that the Chancellor has failed to address the unfairness of our business rates system, and in doing so has missed an opportunity to support retailers at a time of economic uncertainty. Under the current system retailers with stores, which provide millions of high-value jobs, will be hit with an additional £480m bill in April, while online-only businesses remain significantly under-taxed.
"The rates system is meant to reflect rental values, but with rental values falling it is unjustifiable for business rates to still be going up. If the Government is serious about supporting businesses of all sizes, promoting growth and reducing costs for consumers, it must urgently address our outdated and unfair business rates system."
Sutcliffe
Chief executive Sean Keyes 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."
Love Energy Savings
Founder and chief executive Phil Foster said: "Thousands of small business owners up and down the country, who have kept our economy ticking during a turbulent last three years, will see this as a missed opportunity to provide some much-needed support and certainty. The measures announced by the Chancellor will do little to keep many small businesses that I speak to on a day-to-day basis afloat in a high-wage, high inflation economy.
"While actions to address late payments and extending the business rates discount are welcome reforms, these do not address the main drivers of stress for business owners. A Love Energy Saving survey of 海角视频 SME owners conducted earlier this month showed that rising energy bills (22%) and the current levels of inflation (23%) are the two main causes of stress.
"It is an insult to business owners that rising energy bills did not get a single mention in the statement. Business owners will need to now look at how else they can make savings, whether that be by reviewing their energy consumption or shopping around for the best energy deals."
Kroll
Co-head of global restructuring Sarah Rayment said: "Company administrations are tracking 30 per cent higher than last year and retail, hospitality and leisure businesses are high up that list because they are generally more exposed to consumer confidence, energy costs, cost inflation and higher interest rates. Increasing the National Living Wage is another cost for them to absorb. This time of year is traditionally make or break for many businesses across these sectors, so many have been watching nervously to see whether the Chancellor would freeze the business rates multiplier and extend the rate relief.
"Clearly today's news will be welcome by some, but given the lobbying effort from industry, many will feel it does not go far enough. The rate relief and rates multiplier will only apply to smaller hospitality and retail businesses, therefore for companies with larger outlets or multiple stores, it’s likely that we will see more insolvencies."
National Centre for Universities and Business
Head of policy and engagement Rosalind Gill said: "Becoming an innovation nation requires the 海角视频 to attract, start and scale more innovative businesses. The raft of measures to pour more capital into 海角视频 science and technology companies are hugely welcome, as is the dedication of £20m 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 海角视频 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 海角视频 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 海角视频 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 海角视频 needs a clear, long-term economic plan, genuinely shaped collectively by businesses, universities and policy makers."
Health Assured
Chief executive Bertrand Stern-Gillet said: "The back to work plan announced today with 'treatment not time off as the default' sounds promising on paper, but the reality could be very different. I will be interested to see what support the Government is planning to put in place for small organisations employing people coming back into work from long-term sickness. It could be somewhat naïve to look at working from home as a miraculous cure for all those with mental health and mobility conditions.
"While the benefits of working from home have been heavily touted, the reality is often very different for many. A study released today by the HSE found that 1.8 million people this year have reported suffering workplace-related ill health with around half of these cases down to stress, depression, or anxiety.
"For those already struggling with poor mental health, this plan could have a devastating impact if the correct support mechanisms are not put in place, including an occupational health provision. We've all seen the devastating impact that working alone in isolation has had on the mental health of some people in the country.
"No employer should take a blanket approach to remote working. Instead, each employee should be considered on an individual basis, looking at their specific circumstances and requirements. Only in this way will employers be able truly to carry out their duty of care.
"While it's right that the Government is looking for ways to support people back into work, it's important that they ensure the proper support is in place both for the thousands of people this will impact as well as the organisations and employers hiring them."
American Golf
Chief executive Nigel Oddy said: "Extending the 75% freeze on small business rates will be welcome news for smaller, eligible retailers, and will help them in their bid to maintain current retail prices, which in turn will help consumers. However, more could have been done to support high street retail.
"The rates system is outdated and is penalising larger retailers who are keen to invest in bricks and mortar, as well as online. Rates are an unjust burden on the balance sheets of large high street retailers and impede growth in jobs, stores, and innovation."
Aaron & Partners
Employment law partner Claire Brook said: "The Government’s decision to increase the minimum wage is certainly a ground breaking move, however, employers who will have to fund the increase now have very little time to reforecast the associated costs. In short, this will have a big impact on the bottom line for many and will come as a concern to HR leaders and business owners.
"Starting in April 2024, the national minimum wage will surge by over £1, aligning with the Low Pay Commission's recommendation, also reflecting strong growth in pay across the economy. But employers across many sectors now face a big challenge as they navigate the imminent need to adjust budgets for swift pay increments."
JLL
Head of the North West Stephen Hogg said: "Given the issues the wider economy faces and the fact that inflation and the cost of living remain challenging for both businesses and households, those in the industry will be unsurprised by the fact there's been little to cheer in the Chancellor's latest statement. Green shoots are appearing as further interest rate rises are paused and inflation moves in the right direction, plus it's encouraging to see levelling up funding for the regions and investment zones in the Midlands, which should spur some growth. That said, it would be a mistake to enter the new year bullish.
"Still, those in the sector, especially in regions like the North West that will feel the effects of the cancellation of HS2, will likely be disappointed. All eyes will now be on what both major parties set out ahead of the next general election to stimulate growth and regional regeneration, which will have longer term repercussions on boardroom decisions around issues like investing in workforces and sustainability measures."
Mazars
Tax partner and head of innovation incentives Garry Collins said: "The Chancellor has confirmed that the proposed new combined R&D tax incentive scheme based on RDEC, replacing the existing SME and RDEC schemes, will be launched in April 2024. However, there was no acknowledgement, through any proposed delay to the introduction of the combined RDEC scheme, of the numerous matters and concerns raised by contributors to the consultation on the scheme. These consultation responses largely focussed on how the scheme would work in practice and achieve its goal of incentivising innovative businesses, and remain unanswered.
"Whilst the Chancellor mentioned a decrease in the rate of Corporation Tax from 25% to 19% for loss making companies under the scheme and a reduction in the R&D intensity threshold from 40% to 30% under the R&D Intensives scheme, potentially introducing around £280m of additional funding to innovative businesses, the question of how to get the considerably larger amounts of existing funding into the hands of qualifying businesses, quickly and efficiently, remains unaddressed.
"Innovative businesses in the AI space will welcome the commitment of a further £500m to compute for AI, bringing the investment committed to date to £1.5bn. It is interesting, however, to put this into the context of various independent estimates of investment into the AI sector which suggest that this will reach $200bn globally with at least half of this being in the US by 2025."
Shawbrook
Managing director of enterprise Neil Rudge said: "Whilst an improving set of macros has given greater confidence to 海角视频 SMEs, who have remained remarkably resilient through a protracted period of tough economic conditions, many businesses will have held off from making significant investments. As rate rises appear to have reached their peak and inflation continues its retreat, the Chancellor has been given some breathing space to give businesses more comfort to unleash capital and commit to more substantial investment projects going forwards; good news both for the business and wider 海角视频 economy.
"Making the capital expenditure allowance permanent should pave the way for businesses to commit to more significant investments into plant and machinery. The scheme enables businesses to reclaim 100% of the capital allowances in year one. This full expensing allows companies to write off the full cost of these qualifying investments in one go, which can offset corporation tax liabilities.
"For businesses working to longer capital equipment replacement cycles, the extension may help to bring forward investment timelines to benefit from the relief. But an indefinite extension to the scheme may be just the catalyst needed to give businesses the confidence to make a sustained and longer-term investment decisions, delivering far reaching benefits to the 海角视频 economy.
"For those businesses planning to re-start equipment, plant, and machinery investment programmes that may have been on hold, doing so via asset finance will ensure they can do so in a capital efficient way, whilst also making use of the confirmed allowances. Seeking advice from a broker with good relationships with specialist lenders will support those business leaders who are unsure how to make the most of Government incentives, while choosing the appropriate finance option for their business’s needs."
Weightmans
Partner and head of tax Haydn Rogan said: "This is a mixed bag for businesses. Making the full expensing scheme permanent is a classic case of putting the cart before the horse. In an environment of high-interest rates, weak demand and expensive input costs, the reality is that many firms simply don’t have the money available to make sizeable investments that would help shrink their tax bill under this relief. It may be more helpful in the future, but it’s not really what businesses need now.
"Another freeze in fuel duty is a move that will be widely welcomed. It means lower operating costs for businesses and firms in their supply chains. The intention to simplify R&D tax relief schemes for SMEs is also an important new measure, and could be particularly valuable for smaller businesses in the 海角视频’s tech sector, pending consultation.
"But overall, given the strength of the headwinds buffeting 海角视频 Plc, this Autumn Statement feels like window dressing and not the ambitious action that businesses really need. If the government wants to support investment from British businesses, a cut in Corporation Tax – even to 22% – would be a bold, effective move, freeing up the cash companies need to grow. A proper reform of business rates that went beyond an extended freeze for leisure and hospitality businesses was also absent. Overhauling these rates are endlessly debated but never actioned.
"Given the government’s current fiscal position, it’s unlikely we’ll see anything like this, any time soon. This puts the onus on businesses in the meantime to ensure that they’re making the most of all available deductions and reliefs."
Fuel Hub
Chief executive and co-founder Michelle Laithwaite said: "As a fast growing business, especially one that creates meals in a large kitchen facility, we will greatly benefit from the continuation of full expensing. We have plans to expand the number of meals we're able to produce, and a key way to achieve this is through investing in large equipment, such as industrial cookers, fridges, and line machines.
"Now that there are incentives in place to do so over the long term means we'll be able to accelerate our expansion plans, such as entering into new markets like retail. While this is a welcomed measure, there are still other areas like energy costs and food inflation that will still need to improve in 2024."
Sacha Lord
Sacha Lord, night time economy adviser for Greater Manchester, said: "I am extremely pleased to see the support given to the hospitality sector in today's Autumn Statement. An entire removal of the business rate relief would have left hospitality venues facing unsustainable average hikes of over £12,000 from April and would have created a shock to the sector that would have been difficult to stabilise.
"However, today's move to freeze rates relief will give venues the time and breathing space needed to help them plan ahead effectively and ensure they remain in business to continue their important contribution to the 海角视频 economy.
"We shouldn't overlook the emotional strains that the past three years have placed on small business owners of all sectors. Alongside trade bodies such as 海角视频 Hospitality and the NTIA, my role as night time economy advisor to the Greater Manchester Combined Authority will continue to shine a light on the sector and support business owners through these difficult economic times."
Primas Law
Employment partner Danielle Ayres said: "The Government has today confirmed an increase to the National Living Wage in the Chancellor’s Autumn Statement, which will see the National Living Wage increase to £11.40 from April 2024 – undoubtedly positive news for workers, with an anticipated 2.7 million people set to benefit directly from this.
"That said, while this is good news for employees, for some businesses this will mean that they have increased costs to consider, not only in the level of their employees’ salary but also connected to other payments and charges, for example, benefits which may be based on a percentage of wages such as some pension schemes. This means that the costs associated with staffing will rise. For businesses continuing to struggle in the ongoing turbulent economic landscape, this may cause them to have to make difficult decisions.
"While the Government also announced a number of positive moves for small businesses today as part of its 'Autumn Statement for growth', including freezing the small business multiplier and making full expensing permanent, it is hard to see whether these will have enough clout to support businesses in the short term.
"Employers remain under strain to ensure they can support workers given the difficult times, and enhanced support in this area from the Government, rather than placing the emphasis on the organisations themselves to do more is crucial to a growing business economy."
MHA Moore and Smalley
Tax partner Tony Medcalf 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 海角视频 goes to the vote."
Peninsula
HR advice and consultancy director Kate Palmer said: "There are three main updates impacting the world of HR and employment that have been announced in this year’s Autumn Statement. The increases to the National Living Wage and the National Minimum Wage in April 2024, which were revealed yesterday, were reiterated. Employers will need to prepare for these increases, particularly given that because of the lowering of the qualifying age for the National Living Wage to 21 years old, it could mean that businesses end up paying out the increased rate to more staff in their organisation. Employers need to start reviewing what this means for them.
"An injection of £50m funding for apprenticeships could help businesses facing recruiting and retention difficulties. We will have to wait to see how exactly this funding is going to be spent though.
"Whilst the National Insurance cut relates to the main rate for employees, if it means that staff have more pay in their pockets at the end of the day, then this could indirectly benefit companies. It may ease some of the pressures that employers could be facing trying to support their employees through the current cost-of-living crisis. Again, we will have to see what impact this will actually have in practice.
"It is crucial that organisations correctly categorise the employment status of those who work for them from the start. Whatever the paperwork says the key is what is happening in practice. Businesses should be prepared for any such decisions to come under examination so need to carefully consider this so that they don’t start off on the wrong foot with anyone who is working for them."
DefProc Engineering
Co-founder and managing director Jen Fenner said: "The Chancellor's investment of £960m into Green Industry is a huge opportunity for us and our client base, and the future of the nation’s economy. It provides reassurance that emerging energies, such as hydrogen, and technologies to support them, like hydrogen sensors, are on the Government’s agenda.
"Similarly, the move to make 'full expensing' permanent shows the importance of manufacturing in the economy, while a £50m boost to apprenticeship opportunities strengthens workplace learning.
"There is a lot of exciting manufacturing and innovation happening in the North from SMEs and start-ups, so as long as the Government comes through on its pledge to grow the economy 'everywhere', this is a welcome move. Overall there appears to be a real drive towards supporting manufacturers, particularly in the tech and innovation sector, and small businesses, so as an SME business that develops bespoke tech solutions across a range of sectors, we hope these promises come to fruition."
BDO LLP
Tax partner and head of the North West Angela Cross said: "In the lead up to this statement, the chancellor had warned that tax cuts were ‘virtually impossible’ but the mood music changed significantly in the last week or so, and for business, this has arguably been a more upbeat announcement than anticipated. The 'giveaways for growth', such as extending full expensing on investments in IT, machinery and infrastructure, have responded to demand from businesses for a greater focus on creating economic certainty over the long-term. However, with a General Election looming, it remains to be seen whether today's announcements will be enough to create widespread confidence and incentivise business investment.
"Beyond the headline tax changes, businesses were calling for wider support to ease their day-to-day burdens including further investment in HMRC to improve service levels and measures designed to simplify the tax system. Many may be disappointed that the chancellor didn’t go far enough in this regard.”
"The confirmation of an Investment Zone in Greater Manchester, and the decision to extend the time period for their associated tax breaks, will be a boost for the region and are expected to create jobs and unlock investment in the coming years. Those businesses investing in freeports will also be buoyed by the news that the related tax breaks will be extended until 2031."
Liverpool BID
Chief executive Bill Addy said: "There are a few measures in this statement that are welcome news, a 75% continued discount for retail, leisure and hospitality will benefit our high streets and city centres. It will help business to create their budgets for the new year. A freeze on alcohol duty is good news for hospitality.
"But a great deal of uncertainty remains. In March, the energy scheme for business ends, meaning that there is no support for increasing bills in the next financial year. This is one of the biggest challenges facing small and independent businesses, cultural institutions and property owners up and down our high streets as energy costs and utilities are rising faster and steeper.
"We have to work to make it affordable to keep your doors open, to maintain vibrant city centres that service a mixed use economy. We need more certainty and support that comes from an understanding of the challenge businesses in our great cities are facing, that helps them to face the future with confidence and feel that they can thrive, not just struggle to survive."