Unveiling the UK’s Autumn Budget 2023: A Comprehensive Overview


In a highly anticipated announcement, Chancellor Jeremy Hunt presented the Autumn Budget 2023 in the House of Commons on 22 November 2023, revealing a set of measures aimed at fostering economic growth and stimulating business investment.

The budget, comprising “110 growth measures,” outlines a strategic plan to boost the UK economy by £20 billion annually. This article provides a comprehensive summary of the key tax and related measures introduced in the Autumn Budget.

Tax Measures:

1. Class 1 Employees NI Reduction (From January 2024):

  • A significant move to stimulate income, the budget proposes a 2% reduction in Class 1 employees’ National Insurance contributions, effective from January 2024.

2. Self-Employed and Class 4 NI Adjustments (From April 2024):

  • The Autumn Budget abolishes Class 2 National Insurance for the self-employed and implements a 1% reduction in Class 4 National Insurance from April 2024, providing relief for independent workers.

3. National Living Wage Increase (From April 2024):

  • In a commitment to improving workers’ livelihoods, the National Living Wage is set to increase by a substantial 9.8%, reaching £11.44 per hour from April 2024.

4. Capital Allowances Full Expensing Permanent:

  • A boost for businesses, the budget makes the full expensing of Capital Allowances permanent, allowing companies to deduct expenditure on new equipment and machinery from profits.

5. R&D Tax Credit Schemes Merger (From April 2024):

  • The Research and Development (R&D) tax credit schemes are set to merge, with a reduction in the rate for loss-making businesses to 19%, and a lowered intensity threshold for loss-making SMEs to 30%.

6. Extension of Investment Zones and Freeports Incentives:

  • To encourage investment, the budget extends incentives for Investment Zones and Freeports, fostering economic activity in designated areas.

7. Pensions Triple Lock (From April 2024):

  • A significant commitment to pensioners, the basic state pension will increase by 8.5% to £221.20 per week from April 2024.

8. Business Rate Discount Extension:

  • The 75% discount on business rates for retail, hospitality, and leisure companies is extended for another year, providing crucial support to sectors impacted by the economic challenges.

9. Freeze on Small Businesses Rates Multiplier:

  • Recognising the challenges faced by small businesses, the budget freezes the small business rates multiplier for a year.

10. Universal Credit and Benefit Increase (From April 2024):

  • A boost for individuals and families, Universal Credit and other benefits are set to increase by 6.7% from April 2024.

11. Alcohol Duty Freeze (Until August 2024):

  • In a move to support consumers and businesses in the alcohol industry, the budget freezes alcohol duty until 1 August 2024.

12. Making Tax Digital (MTD) Simplification:

  • The budget introduces changes to simplify the design of Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA), aiming to streamline tax processes for businesses.


As the United Kingdom stands at the threshold of a new economic era, the Autumn Budget 2023 emerges as a blueprint for resilience and growth. Chancellor Jeremy Hunt’s unveiling of “110 growth measures” signifies a commitment to rejuvenating the economy and bolstering business confidence.

If you would like any further information regarding the new measures outlined above, please don’t hesitate to contact your usual Dixcart UK contact or enquire at advice.uk@dixcart.com

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