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UK’s 2023 Autumn Statement: A Blueprint for Growth and Prosperity

November 22, 2023 / Last updated : November 22, 2023 Livinintheuk.com Living in the UK

UK’s 2023 Autumn Statement: A Blueprint for Growth and Prosperity

Here’s a more detailed elaboration of the key points from the UK’s 2023 Autumn Statement:

Economic Growth Forecast: The UK economy is projected to grow by 0.6% in 2023, followed by 0.7% in 2024 and 1.4% in 2025. The Office for Budget Responsibility (OBR) predicts a reduction in the average inflation rate to 2.8% by the end of next year and 2% by 2025.
Minimum Wage Increase: The national living wage will rise to £11.44 per hour from April, up £1.02 from the current rate of £10.42. This applies to individuals over 21, with separate, increased rates for those under 21 and apprentices.
Benefits Increase: Benefits will rise by 6.7% in line with September’s inflation rate, effective from April. Additionally, the local housing allowance rate will increase to support approximately 1.6 million households with an average of £800 next year.
National Insurance Cuts: The headline national insurance rate for employees is reduced by 2 percentage points, affecting around 27 million workers. This cut, effective from 6 January, lowers the rate from 12% to 10%.
State Pension Increase: State pensions will increase by 8.5%, amounting to £221.20 a week. This represents almost an extra £900 a year, honoring the triple lock mechanism.
Investment in Innovation: £500 million will be invested over two years in innovation centers to establish the UK as an AI powerhouse. Tax relief for research and development will be simplified and merged.
Alcohol Duty Freeze: All alcohol duty will remain frozen until August, including on beer, cider, wine, and spirits.
Faster Planning Applications: The government plans to reduce the time for granting business planning applications, allowing local authorities to recover full costs for major applications if they meet faster timelines.
Freeports and Investment Zones: Financial incentives for freeports and investment zones are extended to 10 years. Additional investment zones will be established in the West Midlands, East Midlands, Greater Manchester, and Wales.