STA Update: UK Government Autumn Budget 2023 Statement – Highlights for Businesses

The UK Government has today, Wednesday 22nd November 2023, announced its Autumn Budget 2023. Read the full Autumn Budget publication here.

A summary of the the main headlines for Scottish tourism and hospitality businesses are outlined below:  

-Opening statement: “We back business” – set out 110 growth measures to “help grow the economy.”

-The Office for Budget Responsibility (OBR) forecasts headline inflation will drop to 2.8% by the end of 2024 and that the 2% target will be met in 2025.

-UK economy is expected to grow by 0.6% this year and by 0.7% next year, according to OBR.

-Chancellor stated that the OBR has said the impact of the Budget statement will raise business investment, get more people into work, reduce inflation next year and increase GDP.

-75% business rates relief extended to retail, hospitality and leisure in England and Wales for another year.

-Small business multiplier freeze for a further year.

-£80 million for the expansion of the Levelling Up Partnerships programme to Scotland, for Na h-Eileanan an Iar, Argyll and Bute, Dundee, and the Scottish Borders, and will consider how to extend the programme further.

-Reallocation of £20 million from within the Inverness & Highland City Region Deal to fund essential landside infrastructure improvements for the Corran Ferry, subject to agreement through the appropriate Deal governance structures.

-Freeze on all alcohol duty until at least August 2024.

-8% increase to the National Living Wage to £11.44 per hour and expanded to 21 and 22-year-olds (coming into force April 2024).

-The main National Insurance (NI) rate for employees will be cut from 12% to 10% from 6 January.

-Class 2 NI contributions to be scrapped for self-employed earning over earning more than £12,570, while self-employed people who pay Class 4 NI at 9% on all earnings between £12,570 and £50,270 will see that cut by 1 percentage point to 8% from April 2024.

-Business visitor visa reform – to expand business visitor rules to allow businesspeople to engage in a wider range of permitted activities and paid engagements from January 2024. The government will also explore further reforms to the business visitor rules.