Britain’s Chancellor of the Exchequer, Jeremy Hunt, is anticipated to make an important announcement during the Autumn Statement in a speech by Prime Minister Rishi Sunak at a college in north London on November 20, 2023. As part of measures to boost economic growth, Hunt will reveal a permanent tax break for businesses, known as full expensing, which allows businesses to immediately offset investment in plant and machinery against tax, as reported by The Times and The Financial Times newspapers.
The policy of full expensing is worth around 9 billion pounds ($11.21 billion) a year and was due to end in 2026, but will now be permanently extended. The Financial Times, citing government officials, said this would be Hunt’s flagship reform to boost growth. Hunt has previously expressed his desire to make the tax break permanent when the fiscal position allows. Additionally, The Times reported that Hunt will cut the headline rates of national insurance for around 28 million people.
On the eve of delivering his budget update, Hunt announced that Britain’s national minimum wage will increase by 9.8% to 11.44 pounds per hour from April 2024, up from 10.42 pounds .
($1 = 0.8025 pounds)
The announcements by Hunt are expected to have a significant impact on economic growth and the financial landscape of Britain, signaling major changes to taxation and wage policies that will affect businesses and workers across the nation. This news has brought both anticipation and curiosity among the public and experts, as they await further details and implications of these reforms.