After the cabinet re-shuffle earlier this week, Jeremy Hunt remains Chancellor of the Exchequer and will be delivering the Autumn Statement for 2023.
Though he has more headroom to make tax cuts and increase spending than expected, there probably won’t be any overly grand announcements this time. Word is that the Spring Budget 2024 will be a ‘doozy’, but this is no surprise in the run-up to a General Election.
Here is what we know about what’s coming up for small businesses this year.
When is the Autumn Statement 2023?
The Autumn Statement is on Wednesday November 22, 2023.
What time is the Autumn Statement happening?
It is expected to start around the normal time of 12:30pm, just after Prime Minister’s Questions.
How can I watch the Autumn Statement?
The Autumn Statement will be broadcast on the BBC and will stream on parliamentlive.tv.
Autumn Statement 2023 for small business owners
Though we won’t know for sure until the day, rumours and leaks are floating around, with a couple of announcements already made at the recent Conservative Party Conference.
Tax
There has been talk of extending full expensing, the successor to the super deduction tax break, by three years. Full expensing allows companies to write off the cost of qualifying plant and machinery investment in the year that they invest. However, this only applies to businesses paying corporation tax so will have less of an effect on SMEs. Hunt has said previously that he would make the scheme permanent ‘when fiscal conditions allow’.
We could also be seeing developments in Making Tax Digital. When a delay was announced in December last year, a government review was launched to find out how it would affect small businesses. This Autumn Statement could include a response to that.
Hunt replaces super deduction with new tax break – Among his announcements in the Spring Budget, the Chancellor has introduced full expensing, successor to the super deduction tax break
EIS and VAT
The sunset clauses on EIS and Venture Capital Trust (VCT) schemes will be extended beyond 2025.
In the past the government said that it would provide details of the scheme beyond 2025 at a future fiscal event – and this could be it.
R&D
The two existing Research and Development (R&D) schemes could be merged into one single scheme.
Green SDLT
The idea of a green Stamp Duty Land Tax may be introduced for those who buy a property and improve its energy efficiency within two years.
Alcohol Duty
An increase in Alcohol Duty is expected for the second time in four months. Costs would be increasing in line with the retail price index (RPI), currently measuring at 8.9 per cent. That means the average price for a bottle of wine will reach £8, up from £7.74 at present.
Living Wage rise
As announced at the 2023 Tory Party Conference, the Living Wage for those 23 and over will rise from £10.42 to at least £11 per hour. It’ll come into effect in spring 2024.
CBAM UK
Mirroring the EU, Hunt is expected to announce a Carbon Border Adjustment Mechanism (CBAM) to be introduced in 2026. This is a levy on carbon-intensive goods from countries with weaker climate regulations.
This preview of what small business can expect from this year’s Autumn Statement will be continually updated.
Read more
CBAM – EU’s new green import tax explained – The Carbon Border Adjustment Mechanism (CBAM) will start from October. For manufacturers exporting to the EU, here’s what we know so far
