Autumn Statement 2023

Chancellor Jeremy Hunt announced his Autumn Statement to MPs in Parliament today. You can also read the associated HM Treasury press release here.

Here are some of the main announcements that are of relevance to our sector:

• Inflation - Last week inflation was 4.6%. The OBR forecasts it to fall to 2.8% by the end of 2024.

• Economy - Office for Budget Responsibility forecast economy will grow by 0.6% this year, 0.7% next year and 1.4% in 2025.

• Duty - All alcohol duty increases frozen until next year August 1st. No increase on beer, cider, wine, or spirits. Rolling tobacco duty will increase by an additional 10% above the tobacco duty escalator.

• Business Rates - Government will freeze Business rates and extend 75% discount for hospitality in England (SGF is calling for Scottish Government to provide the same support).

• Tax - The Chancellor also made permanent a tax break for businesses that allows them to save on corporation tax by investing in their businesses. Also, National Insurance paid by employees has been cut from 12% to 10%, taking effect from 6 January.

• Wages - National Living Wage will increase to £11.44 for adults over 21 (SGF sent out full details in an e-shot earlier today).

In addition, the Scottish Government will receive £545million in additional funding through the Barnett Formula.

SGF will be calling on Scottish Government to ensure any support or relief announced today is passed on to Scottish businesses.

We hope this has been useful for keeping members informed.