![]() The business rates multipliers will be frozen in 2023-24, and upward transitional relief caps will provide support to ratepayers facing large bill increases following the revaluation. The Autumn Statement sets out a package of targeted support to help with business rates costs worth £13.6 billion over the next 5 years. While taking these necessary steps, the government also recognises that businesses are facing significant inflationary pressures. The Energy Profits Levy will be increased by 10 percentage points to 35% and extended to the end of March 2028, and a new, temporary 45% Electricity Generator Levy will be applied on the extraordinary returns being made by electricity generators. The Autumn Statement sets out reforms to ensure businesses in the energy sector who are making extraordinary profits contribute more. R&D tax credits will be reformed to ensure public money is spent effectively and best supports innovation. The government will implement the OECD Pillar 2 rules, to deliver a global minimum corporate tax rate of 15%. The Autumn Statement fixes the National Insurance Secondary Threshold at £9,100 until April 2028. The government will also reduce the Dividend Allowance and Capital Gains Tax Annual Exempt Amount.īusinesses must also pay their fair share. Income tax, National Insurance and Inheritance Tax thresholds will be maintained at their current levels for a further two years, to April 2028. The Autumn Statement reduces the income tax additional rate threshold from £150,000 to £125,140, increasing taxes for those on high incomes. The government’s approach to delivering fiscal sustainability is underpinned by fairness, with those on the highest incomes and making the highest profits paying a larger share. ![]() ![]() The Autumn Statement sets out further steps on taxation and spending, ensuring that each contributes in a broadly balanced way to repairing the public finances, while protecting the most vulnerable. To achieve this aim, the government has reversed nearly all the measures in the Growth Plan 2022. This will reduce debt servicing costs and leave more money to invest in public services support the Bank of England’s action to control inflation and give businesses the stability and confidence they need to invest and grow in the UK. Economic stability relies on fiscal sustainability – and the Autumn Statement sets out the government’s plan to ensure that national debt falls as a proportion of the economy over the medium term. The government’s priorities are stability, growth and public services. ![]() These factors have contributed to a significant gap opening between the funds the government receives in revenue and its spending. Debt interest spending is now expected to reach a record £120.4 billion this year. This comes against a backdrop of higher levels of government debt due to the economic impacts of the COVID-19 pandemic and current energy crisis. Growth is slowing and the International Monetary Fund (IMF) expects a third of the global economy to fall into recession this year or next. Central banks are raising interest rates to get inflation under control, which has pushed up the cost of borrowing for families, businesses and governments. Putin’s illegal war in Ukraine has contributed to a surge in energy prices, driving high inflation across the world. The Autumn Statement 2022 comes at a time of significant economic challenge for the UK and global economy. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |