The Autumn Statement is an annual event in the finance world, with its counterpart announcement in the Spring. Whilst it gains lots of new coverage and might pop up on your radar, what does it mean for you?
What is the Autumn Statement?
The Autumn Statement, also known as the Budget, is an update from the government on their economic plans such as tax and spending next year based on forecasts.
The Chancellor of the Exchequer, this year Jeremy Hunt, updated MPs on the plans in the televised announcement. This happens twice a year in the Autumn and Spring statements.
Even if you watched the announcement, you still might be slightly confused about what was announced and what it could mean to you.
What was announced in the Autumn Statement?
Lots of different schemes and plans were announced in the Autumn Statement, a few of them are listed below:
Cut the main 12% rate of employee national insurance contributions by two percentage points to 10%
New tax cuts for business investment
Welfare reforms to help people get back into work
National living wage increases
Changes to national insurance contributions for the self-employed
Business rates discount for hospitality, retail and leisure
What does this mean for me?
Looking at each of those points we’ve outlined some possible benefits below:
If you are paid by an employer, the change in national insurance contributions could save you an average of £450 a year.
Businesses can offset investment in items such as new IT equipment and factory machinery against tax. Meaning they can attain quality equipment sooner than they may have been able to previously.
Mandatory work experience for those claiming benefits if they have been unable to find a job within 18 months. Allowing you to build on your resume and hopefully get back into work quicker.
An increase in those paid national living wage” from April to £11.44 an hour.
The abolishment of “class 2” and change to “class 4” contributions could save a self-employed person around £350 a year.
An extension of business rate discounts to hospitality, retail and leisure means that businesses like pubs and high-street shops can continue to benefit.
Brancaster on the Radio
Co-owner Shane Julian went on Future Radio, Norwich’s community radio, to discuss what the Autumn Statement means to those who may understand it the least. You can listen to his full interview here.
He touched upon the biggest impact on most people, the cut to national insurance, as it means money in the pockets of those paid by employers and will help businesses retain staff.
Shane also highlighted that the business rate cuts were great news for local businesses, that are still rebuilding from COVID-19. He also highlighted some smaller changes that haven’t been reported on, such as the changes to ISAs, a tax-free saving allowance that we all have access to and could be a good opportunity to save some money.
If you’re still unsure about what impact the Autumn Statement could have on you and your finances, arrange a meeting with our team to discuss your needs today.
We aim to make financial advice clear and accessible to everyone, you can contact them here.