Chancellor spells out National Insurance reform and freezes business rates

For companies, the business investment "super reduction" that allows firms to write off the cost of investment against tax is to be made permanent. This means that for every £1 million of investment, companies can recoup £250,000 against tax. Hunt called it “the biggest tax cut for business in modern British history".

There was some consolation for pensioners battling soaring cost of living and energy bills. Pensions will rise by 8.5% from April 2024, meaning up to £900 a year more, with the basic rate increasing to £221.20 a week.  

Hunt also confirmed the National Living Wage would be raised from £10.42 an hour to £11.44 from April 2024, a rise of almost £1,800 a year. It will also be expanded to 21 and 22-year-olds for the first time.

The government said this would help almost three million of the UK’s lowest paid workers, but it means a wages bill increase of 9.8% that employers will have to foot.

The Advantage Travel Partnership said there were different rates of pay for apprentices depending on age and the year of the apprenticeship. "From our reading, those who are 21 and over who are apprentices and have completed their first year of training will be entitled to the National Living Wage come 1 April 2024," it said.
 
"However, apprentices under 21 years old, or who have not completed their first year of training, will not be entitled to the National Living Wage, and will instead be entitled to the apprenticeship wage or the minimum wage, depending on their age."

Hunt said difficult decisions to put the economy back on track had worked, “rather than recession, the economy has grown”, he said. 

UK economic growth has been faster than the Euro area, he said, with 0.6% growth this year and 0.7% next year predicted by the Office for Budget Responsibility. The OBR predicts inflation will fall to 2.4% by the end of next year.

’Step in the right direction’ or ’missed opportunity’?

In a joint response, Advantage and Aito said: “We welcome the key points announced as part of today’s Autumn Statement. 

“Anything which reduces the tax burden on businesses and puts more money back in the pockets of consumers is good news for businesses operating in the UK outbound travel sector and for those servicing businesses with travel management solutions. The measures announced today are a step in the right direction. 

“We also welcome the government’s continued support for small business and high streets, in particular the business rates support package announced today by the chancellor.”

UKinbound chief executive Joss Croft, though, described the statement as a "missed opportunity", one that "failed to harness the substantial economic growth potential of the UK’s inbound tourism industry" and "disregard the sky-high price of international travel".
 
“The UK is at a significant competitive disadvantage but with the right support from government, international tourism to the UK could immediately and significantly boost businesses and local economies throughout the four nations," said Croft.
  
“The failure to bring back VAT refunds for international visitors is a significant oversight and one that will hit UK high streets and boost those in France, Germany and Italy."