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Autumn Statement 2023

On 22 November 2023, Chancellor Jeremy Hunt delivered the Autumn Statement. Read ICAEW's analysis and reaction.

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Insights

Autumn Statement: short-term gain, medium-term loss

The Autumn Statement included several measures that are welcome news for businesses, but the medium-term outlook looks less positive.
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Tax

MTD ITSA announcement disappoints

The government has missed the opportunity to seriously reconsider its MTD ITSA policy. The decision on mandating MTD for the self-employed and landlords with turnover below £30,000 is to remain under review.
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Tax

NIC rate cuts for self-employed and employees

National insurance contributions (NIC) will be reduced to 8% for the self-employed and to 10% for employees, and the flat rate class 2 NIC will be abolished for most self-employed, the chancellor has announced.
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Tax

Autumn Statement: the tax changes that didn’t make the headlines
  • Article
  • 29 Nov 2023
ICAEW’s Tax Faculty scans the Autumn Statement documents for other tax-related announcements. Various tax measures can be found in the Overview of tax legislation and rates, the Autumn Statement, and updated Tax information and impact notes.
Self assessment criteria are changing
  • Article
  • 29 Nov 2023
A further change to the criteria for filing a self assessment tax return was announced in the Autumn Statement 2023. More changes are expected as new digital services are rolled out or improved.
Chancellor confirms full expensing will be permanent
  • Article
  • 22 Nov 2023
The full expensing regime will not expire on 31 March 2026 and will be made permanent, the Chancellor announced at the Autumn Statement on 22 November 2023.
R&D tax relief merger to go ahead despite concerns
  • Article
  • 22 Nov 2023
Jeremy Hunt has confirmed in the Autumn Statement that the two existing research and development tax relief schemes will merge with effect for accounting periods from 1 April 2024.
Expansion of cash basis for unincorporated businesses
  • Article
  • 22 Nov 2023
The government has published the summary of responses to a consultation on the cash basis alongside the Autumn Statement. This announces relaxations that will allow more businesses to use this basis of taxation from 6 April 2024.
Extension of VAT zero rates in Autumn Statement
  • Article
  • 22 Nov 2023
The zero rate of VAT will apply to reusable period underwear and the installation of a wider range of energy saving materials from early 2024.
CIS gross payment compliance tests to be strengthened
  • Article
  • 22 Nov 2023
The Chancellor has confirmed that VAT compliance will be considered for obtaining and retaining gross payment status. Cancellation of gross payment status on grounds of fraud will also be expanded.
Off-payroll working offset rules to be introduced from April 2024
  • Article
  • 22 Nov 2023
The Autumn Statement confirms a welcome new power to offset tax following a correction to an employment status determination.
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News and insights

Economic update December 2023: UK economy flatlines but avoids recession
  • Article
  • 01 Dec 2023
Economic conditions remain challenging despite a dramatic drop in inflation and a positive Autumn Statement. ICAEW’s Economies Director Suren Thiru discusses the implications.
Badenoch outlines FRC’s new remit
  • Article
  • 23 Nov 2023
Letter sets out the Financial Reporting Council’s core responsibility to enhance public trust and confidence in the quality of audit, corporate reporting and governance, while supporting the UK’s economic growth and international competitiveness.
Extension of investment zone and freeport tax reliefs in England
  • Article
  • 21 Nov 2023
Ahead of the Autumn Statement, the government has announced that the investment zone and freeport tax reliefs will be extended from five to 10 years.
Public sector net debt hits an unprecedented £2.6trn
  • Article
  • 21 Nov 2023
Monthly public sector finances for October saw spending continue to exceed receipts by a large margin, albeit by less than was predicted earlier in the year.
ICAEW calls for action to boost UK’s productivity and resilience
  • Article
  • 06 Nov 2023
In a letter to the Chancellor, ICAEW recommends the introduction of incentives to support sustainable business growth and long-term funding streams for local councils, as well as tax simplification and action to improve HMRC service standards.
Public sector finances: first half year sees £82bn deficit
  • Article
  • 20 Oct 2023
Public sector net debt increased to just under £2.6trn on 30 September 2023, as the fiscal deficit continues to trend below the Office for Budget Responsibility’s official forecast from March 2023.

The PM’s pledges: where are we now?

In this Insights In Focus episode, published in September, we analyse the health of the UK economy through the lens of the Prime Minister’s pledges for 2023.
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Resilience and renewal

The lives and livelihoods of everyone living in the UK are intrinsically tied to the long-term health of its economy, both domestically and in international markets. But we face serious challenges. This content series examines economic issues that UK business and chartered accountants are at the centre of tackling to build a better, more resilient future.
Navigating a changing world of trade
  • Article
  • 07 Nov 2023
International trade and strong supply chains are a cornerstone of economic growth and opportunity. But unlike its international peers, the UK’s trade performance has failed to bounce back after the pandemic. Here, we examine the key challenges UK businesses face when trading internationally, while the next article considers possible solutions.
How to reinvigorate the UK’s international trade performance
  • Article
  • 07 Nov 2023
The UK’s international trade activity is falling behind that of its economic peers. Here, we examine what changes are needed from policymakers and business to close that gap and why chartered accountants are so well-placed to help them.
The UK's skills gap and what’s gone wrong
  • Article
  • 17 Oct 2023
For a generation, a shortage of skills has undermined business confidence, investment, and productivity across the UK, and so limited economic growth and left us more exposed to inflation shocks. Here, we look at what’s causing this shortage and, in the next article, ideas for addressing it.
How to close the UK’s skills gap
  • Article
  • 17 Oct 2023
Addressing the UK’s labour supply and skills gap is no easy task, but policymakers, business, and the chartered accountants that advise them have a key role to play.
Understanding the UK’s productivity problem
  • Article
  • 26 Sep 2023
Poor productivity has upset many UK economic success stories across the past half century. There’s no smoking gun or obvious culprit but rather a number of complex reasons. Here we look at three major causes and, in the next article, the role of UK business and accountants in fixing it.
Tackling the UK’s productivity problem
  • Article
  • 26 Sep 2023
The UK’s persistently poor productivity must be tackled if we are serious about renewing economic growth and raising living standards. Businesses and accountants have a core role in that endeavour. Here we look at what they need to play that role.
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ICAEW letters to the government

ICAEW letter to the Chancellor Autumn Statement 2023
  • No content type
  • 06 Nov 2023
  • PDF (141kb)
A letter from ICAEW CEO Michael Izza to Chancellor Jeremy Hunt ahead of the Autumn Statement on 22 November 2023.
ICAEW REP 107/23 Autumn Statement 2023
  • Representation
  • 16 Oct 2023
  • PDF (266kb)
A representation dated 13 October 2023 to a consultation published by HM Treasury ahead of the Autumn Statement taking place on 22 November 2023.

Charts

Chart of the week: Exploding debt
  • Article
  • 30 Nov 2023
Our chart this week takes a look at how UK public debt has exploded since the financial crisis to more than quintuple from £0.6trn in March 2008 to a projected £3.1trn in March 2029.
Chart of the week: Autumn Statement 2023
  • Article
  • 23 Nov 2023
Our chart this week illustrates how Chancellor Jeremy Hunt used almost all of the available upside from inflation and fiscal drag to fund his tax measures and a series of business growth initiatives.
Chart of the week: Pensioners dilemma
  • Article
  • 16 Nov 2023
The ‘elephant in the room’ of growing numbers of pensioners and what that will mean for the long-term prospects of the public finances is likely to be avoided yet again at next week’s Autumn Statement.
Chart of the week: Inflation by month
  • Article
  • 19 Oct 2023
Our chart this week looks at how September’s inflation rate of 6.7% is made up by month, and why a big drop in the annual rate is predicted next month.

Business Confidence Monitor

UK Business Confidence Monitor: National
  • 09 Oct 2024
The latest national Business Confidence Monitor (BCM) for Q3 2024 shows a slight drop in sentiment. However, confidence remains high as businesses continue to expect sales and profits growth to improve significantly in the year ahead.
Construction sector exposed as business confidence declines
  • 26 Oct 2023
UK construction confidence plummets amid economic challenges as bank charges and weather woes weigh on the sector.

Further resources

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Resilience and renewal

This Insights content series examines how we can build a better economy for a more resilient future.

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Energy crisis

A look at how supply difficulties, rising electricity prices and sanctions against Russia are contributing to turmoil in energy markets and an examination of what businesses can do to lessen the impact.

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Cost of doing business

Insights, analysis and resources for organisations facing rising costs of doing business amid a multitude of challenges, including energy prices, inflation, supply chain disruption and staff recruitment and retention.

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