On November 22, Chancellor Jeremy Hunt presented the 2023 Autumn Statement to Parliament and released accompanying documents. Subsequent to the Chancellor's address, the Office for Budget Responsibility (OBR) issued updated projections for the economic and fiscal outlook of the UK.

According to the background briefing in the Library's Autumn Statement 2023, the UK has experienced subdued economic growth since early 2022 due to elevated inflation and increasing interest rates, resulting in constraints on household and business expenditures.

The OBR anticipates a slower economic growth rate than initially forecasted in March 2023. The revised forecast indicates that inflation, now more persistent and domestically driven, will have a positive impact on public finances. This is expected to enhance tax revenues more than the increase in public spending.

The Chancellor directed a substantial portion of the improved public finances toward supporting business and implementing personal tax cuts.

The Chancellor outlined initiatives in various areas:

National insurance – This involves reducing the Class 1 NICs rate for employees from 12% to 10% starting January 6, 2024, and lowering the main rate of Class 4 NICs for the self-employed from 9% to 8% effective April 6, 2024.

"Full expensing" capital allowance – This provision, allowing companies to deduct spending on new machinery and equipment from profits, has been made permanent after its temporary introduction in the 2023 Spring Budget.

Business rates – The Chancellor proposed extending the existing 75% business rates relief for eligible retail, hospitality, and leisure properties for one year in 2024/25, along with freezing the small business rates multiplier for businesses in 2024/25.

Freeports – The duration of tax reliefs available for Freeports will be extended from five to ten years.

Investment zones – The Chancellor plans to extend the program from five to ten years.

Alcohol duties – Alcohol duties will be frozen until August 1, 2024, with the annual uprating decision postponed to the 2024 Spring Budget.

Welfare reforms – The Chancellor introduced a package of welfare reforms, including strengthened work search requirements for some, aimed at increasing employment.

Local housing allowance – Rates will be increased to match the 30th percentile of an area's market rents in 2024/25, and these rates will be maintained in cash terms in subsequent years.

Planning – Plans include accelerated planning decision dates for major developments in England, guaranteed in exchange for a fee.

National living wage – The National living wage will see an increase from £10.42 per hour to £11.44 starting April 2024. This rate will apply to those aged 21 or over, following an extension of the rate to 21 and 22-year-olds.