UK Autumn Budget | What you need to know
At the start of the year, the Prime Minister outlined three key economic goals: slashing inflation, growing the economy, and reducing national debt. The economy rebounded faster than predicted with inflation dropping significantly in October from over 11% to 4.6%. Additional predictions suggest a decline in debt as a part of the Gross Domestic Product (GDP) by 2027-28, giving the government more fiscal flexibility than previously thought. Their focus lies on debt reduction, tax cuts, supporting local businesses, sustainable energy, and education improvement.
The Autumn Statement highlighted careful spending, emphasising debt reduction, tax cuts, welfare reforms promoting employment, and measures to boost business investments. These policies are estimated to bring in £14 billion more in investments and create 78,000 jobs by the forecast's end, with an anticipated rise in employment by about 200,000. Additionally, these strategies are projected to raise the economy's potential output by 0.3%, alongside a 0.2% increase projected earlier — marking substantial progress in boosting labour supply and potential Gross Domestic Product (GDP) through fiscal policies according to the Office for Budget Responsibility.
In payroll, the main headline is from 6th Jan 2024 the standard rate for NIC will adjust from 12% to 10% for employees. For directors on a cumulative annual NIC basis, a blended rate of 11.5% will apply. These changes will be applied automatically to your payroll from the 6th of January 2024.
If you would like more information, you can refer to the full Autumn Budget Statement published on HMRC's website. Follow this space for further announcements following the changes to the Spring Budget in April 2024 and for the latest updates in payroll.
Written by
Isabella Zermani
Pay Check Limited
paycheck@paycheck.co.uk
+44 (0) 20 7866 4600