Campaign Reply - The Autumn Statement 2023

Thank you for contacting me about the Chancellor’s Autumn Statement.

In January 2023, the Prime Minister set out five priorities for government. Three were economic: to halve inflation, grow the economy, and reduce debt. Since then, inflation has halved, the economy has recovered more quickly from the pandemic than first thought, and debt is on track to fall.

Thanks to the stability this has brought, the Government is now able to focus on the long-term decisions required to strengthen our economy: reducing debt; cutting tax and rewarding hard work; building domestic, sustainable energy; backing British businesses; and delivering world-class education.

I welcome that Autumn Statement 2023 sets out the biggest package of tax cuts to be implemented at a fiscal event since the 1980s, while at the same time getting inflation falling and borrowing lower. The Chancellor will reduce taxes for 27 million working people from January by cutting the main rate of National Insurance contributions from 12 to 10 per cent. For the average worker earning £35,000 a year, this means a tax cut of £450. I also welcome that the Government will boost the National Living Wage (NLW) by 9.8  to record levels of £11.44 an hour. A full-time worker on the NLW will see their pay increase by over £1,800.

The Government is also continuing to support the most vulnerable. All working-age benefits will be increased in full by 6.7 per cent, boosting the incomes of 5.5 million households who receive Universal Credit by an average of £470 a year. The Government will also increase Local Housing Allowance rates, making 1.6 million families better off by an average of £800 in 2024-25. In line with the Triple Lock, pensions will be boosted by 8.5 per cent, ensuring dignity in older age for those who have worked their entire lives.

As announced at Autumn Statement 2023, the Government is cutting business taxes by £11 billion – the biggest business tax cut in modern British history – by permanently enabling businesses to offset investments against their tax bills. For every pound a business invests, its taxes are cut by up to 25p. Companies can now permanently claim 100 per cent capital allowances on qualifying main rate plant and machinery investments. This will generate £3 billion of additional investment each year and £14 billion over the next five years. 

The Government is also freezing the business rates multiplier for small businesses for a fourth consecutive year, saving an average shop £1,650. It is also extending the Retail, Hospitality and Leisure relief, meaning 230,000 properties will benefit from almost £2.4 billion in support, protecting small businesses in our high streets and town centres. 

I welcome the Chancellor’s announcement of a £110 million investment for local planning authorities affected by ‘nutrient neutrality’ rules, unlocking 40,000 new homes over five years. The Chancellor is also reforming our planning system to tackle the delays faced by businesses in building infrastructure, including by cutting consent times for nationally significant infrastructure projects to two and a half years as soon as possible.

The Chancellor has announced new investments in three Investment Zones and the creation of a new Zone in Wrexham, building on the 12 existing Investment Zones across the country. I welcome that the Government will also extend the programme of Investment Zones announced at Spring Budget 2023 from five years to ten years and introduce a new additional fund of £150 million that areas can access to help land investments. 

This Autumn Statement takes another step forward in tackling the long-term economic challenges facing the UK, allowing us to build a more dynamic economy that delivers prosperity across the country and the change it needs. 

Thank you again for taking the time to contact me.