The UK Chancellor of the Exchequer, Jeremy Hunt, delivered the government’s Autumn Statement 2023 on 22 November.

Importance of understanding the implications for businesses and individuals

Being informed about the UK budget helps people make informed financial decisions, adapt to changes in the economy, and proactively manage both personal finances in response to government policies and priorities.

Overview of theme of the budget: avoid big government spending and high tax, and instead cut taxes and “reward hard work” with 110 “growth measures” for business.

Here’s an overview of the UK Budget announcement, there are two key areas of focus:

National Insurance Contributions cuts: costing around £10 billion. For the Chancellor, this was all about timing, with this specific tax cut coming into force in January next year (reduced from 12% to 10%). Aimed to accelerate the recovery of household income, which remains significantly below pre-pandemic levels and represents the largest fall since records began in the 1950s.

Extending business investment: costing around £9 billion and aiming to increase investment levels in the economy. For businesses this provides much needed tax policy certainty, which should aid long-term decision-making.

What can individuals and businesses can do to adapt:

• Review their budget and identify areas where you can cut expenses or reallocate funds based on changes in taxation or benefits.
• Review their investment portfolio considering changes to capital gains tax or other investment-related policies.
• Stay informed about changes in tax rates, allowances, and exemptions.
• Review their estate planning strategies considering changes to inheritance tax or other related policies.
• Understand the implications of any changes in income tax rates or allowances on your take-home pay.
• Seek further education or training that aligns with government initiatives or incentives.

For businesses it’s important to help your people stay informed of changes to the UK economic outlook and participate in financial education to better navigate the world of personal finance. Get in touch and find out how nudge can support your people through changes in the world of personal finance.