AUTUMN STATEMENT

As the Chancellor unveiled 110 ‘growth measures’ earlier this week, the key announcements of interest to employers, the self-employed or those with an interest in employment law may well be:-

-      National Living Wage to increase to £11.44, with the age threshold reduced to 21 year-olds

-      Employee national insurance contributions reduced from 12 to 10% with effect from 6 January 2024

-      Inflation predicted to reduce to 2.8% by end of 2024, which will be a factor employers consider when assessing any 2024 pay review

-      £50 million of investment into apprenticeships in engineering and other key growth sectors

-      Abolished Class 2 national insurance and cutting Class 4 national insurance contributions by 1% for the self-employed

-      Full expensing to be made permanent for IT, machinery and equipment investment

-      New welfare benefits reforms designed to increase the number of people in work

It was an Autumn Statement said by many to offer some stability and balance,  promising calmer financial waters in 2024.   Others lamented the lack of tax cuts for employers and businesses, though they will surely follow in the full, spring Budget.   

Many employers will need to grapple with how they meet the new rates of National Living Wage and the new holiday pay regime -  WorkSmarter will be here to help.