2023 Autumn Statement - Implications for businesses
National Insurance Contributions (NICs)
From 6 January 2024, there will be a reduction of 2p in NICs for employees, decreasing from 12% to 10%. Class IV NICs for the self-employed will decrease from 9% to 8% and Class II NICs will be phased out.
Business Rates
The government will introduce a business rates support package worth £4.3bn over the next five years to support small businesses and Retail, Hospitality and Leisure. This includes extending the 75% discount on business rates for retail, leisure, and hospitality SMEs in England until March 2025. Also, the small business multiplier for business rates will remain frozen for the upcoming year.
Late payments support
SMEs will be supported with tougher regulation on late payers to improve prompt payments, the expansion of Made Smarter in Great Britain and continued funding for Help to Grow.
National Living Wage and National Minimum Wage rates
From 1 April 2024, the National Living Wage will increase by 9.8% to £11.44 an hour for eligible workers. This will also include 21- and 22-year-olds. The National Minimum Wage rates will also increase for young people and apprentices: for people aged 18-20 by 14.8% to £8.60 an hour, for 16-17-year-olds and apprentices by 21.2% to £6.40 an hour.
Climate Change Agreement Scheme
The Climate Change Agreement Scheme will be extended, giving energy-intensive businesses like steel, ceramics and breweries around £300 million of tax relief annually until 2033 to encourage investment in energy efficiency and support the Net Zero transition.
