In the midst of a challenging economic climate, UK Chancellor Jeremy Hunt delivered the Autumn Statement on November 22, 2023, outlining a series of measures aimed at addressing the rising cost of living, stimulating economic growth, and providing support for businesses and individuals. The statement encompassed a comprehensive package of fiscal policies, touching upon taxation, welfare, pensions, and business incentives. This article delves into the key measures announced by Chancellor Hunt, examining their potential impact on the UK economy and its citizens.
A cut to employee National Insurance from 12% to 10% for 27 million workers.
U.K. Finance Minister Jeremy Hunt announced a cut to employee National Insurance from 12% to 10% for 27 million workers in his Autumn Statement budget announcements on Wednesday, November 22, 2023. This change will take effect from January 6, 2024. The average worker earning £35,000 will save over £450 per year as a result of this change.
Tighter welfare rules
- Requiring welfare recipients to undertake work experience after 18 months of not finding a job. This measure is intended to provide people with the skills and experience they need to secure employment.
- Cutting benefits, including access to free prescriptions and legal aid, for those who do not comply with the new work experience requirement. This measure is designed to encourage people to engage with the work experience program and take steps toward becoming self-sufficient.
- Introducing a new “earnings top-up” scheme for Universal Credit claimants who take on low-paid jobs. This scheme will provide additional financial support to help people make the transition into employment and offset the loss of benefits.
- Rolling out a new “Pathways to Work” program to provide more intensive support to those who are furthest from the labor market. This program will offer personalized guidance, training, and job placement assistance to help people overcome barriers to employment.
These measures have been met with mixed reactions. Some have praised them as a necessary step to reduce welfare dependency and promote work, while others have criticized them as harsh and punitive. It remains to be seen what the long-term impact of these measures will be.
Universal credit increase
Chancellor Jeremy Hunt announced a 6.7% increase to Universal Credit and other benefits, effective from April 2024. This increase is in line with September’s inflation figure and will result in an average increase of £470 for 5.5 million households next year.
The decision to increase Universal Credit in line with inflation was welcomed by many, who argued that it was essential to protect the incomes of the poorest families in the face of rising living costs. However, some critics argued that the increase was not high enough to keep pace with the cost of living and that more should be done to support those on low incomes.
The increase to Universal Credit is part of a wider package of measures announced in the Autumn Statement aimed at helping people with the cost of living. Other measures include a cut in the rate of corporation tax from 19% to 17%, an increase in the income tax personal allowance from £12,570 to £13,400, and an increase in the National Living Wage from £9.55 to £10.10 per hour.
The government has said that the Autumn Statement is a “balanced package” that will help to “boost the economy, support people with the cost of living, and ensure that we are investing in the future.”
Business rates & Pensions
Business rates
- A freeze on business rates multipliers in 2023-24 to help businesses manage their costs during a challenging period.
- Upward transitional relief caps to provide support to ratepayers facing large bill increases following the revaluation.
- An extension and increase of the relief for retail, hospitality and leisure sectors to continue to support these businesses after the initial period of relief ends.
- Additional support for small businesses through a number of measures, including an increase in the threshold for Small Business Rates Relief (SBRR) from £12,000 to £15,000.
Pensions
- An increase in the State Pension in line with average earnings to ensure that pensioners’ incomes keep pace with the cost of living.
- A review of the pensions triple lock to ensure that it remains fair and sustainable.
- A commitment to increase the automatic enrollment minimum contribution rate to pensions to help people save more for their retirement.
- A number of measures to encourage people to save for retirement such as increasing the Lifetime Allowance and the Annual Allowance.
Market Experts Comments Autumn Statement Budget
Reacting to the Chancellor’s Autumn Statement, Nick Weston, Chief Commercial Officer at Lilli said:
“While investment in AI and simplification of the R&D tax credit will be welcomed by those across the health-tech sector, we are disappointed that social care did not make the cut in the Chancellor’s Autumn Statement. Once again, this proves that social care is not being prioritised by our government and the overburdened care system will continue to buckle at the knees. We know there is no quick fix but for too long, the challenges within the social care system have been put on the ‘too difficult’ pile.
“At a time when local authorities are spending upwards of 80% of their entire budget on social care with ever increasing demand, the country is crying out for a simpler, effective care system that is fit for the 21st century.Driving digital transformation, simplifying procurement measures and doing more to support front line staff has the potential to help to reform the whole healthcare eco-system.
“We strongly urge central and local governments to work together to push social care higher up the agenda and give care givers the opportunity to be proactive when it comes to delivering care. Early intervention prevents hospital visits and, in some cases, loss of life. We need to act now so that the nation’s carers can get on and deliver vital services to those who need it most.”
Jenny Tragner, Head of Policy at ForrestBrown comments on the implications of today’s Autumn Statement for UK innovation.
“Today’s Autumn Statement confirms that a single scheme for R&D tax relief will be introduced from 1 April 2024. This is an ambitious timetable, but one that ignores consensus from business that the technical design of the merged scheme requires more time to meet the ambitions of the policy intent. Rushing this reform risks impacting complex supply chain relationships without fully understanding the consequences.
That said, there are several clarifications relating to the new merged scheme which are welcome and have been long called for, including:
- The introduction of an effective rate of RDEC for loss-making companies.
- The lowering of the threshold for R&D intensive SMEs to 30% – giving more businesses access to the enhanced rate of relief.
- Clarity regarding the definition of subcontracted R&D, included as a policy paper published alongside the Autumn Statement, ensuring relief is directed to R&D decision makers rather than their customers.
- The removal of restrictions on subsidised expenditure from the merged RDEC scheme avoids what could have been major disruption to many existing larger businesses. The announcements go further by committing to tidy up the subsidy provisions for R&D intensive SMEs as well.
Despite these developments, which are broadly positive, there will still exist a noticeable disconnect between the aspiration of the policy and its implementation. For example, a business with a fifth of its overall expenditure invested in R&D – a substantial commitment for any business – will not be considered R&D intensive by the Treasury under the new scheme. Whilst a threshold needs to be set somewhere, many of the UK’s innovators may be underwhelmed by the Chancellor’s vision for the future of R&D tax relief.
Moreover, with regards to the new definition of subcontracting, genuine R&D subcontractors are still set to lose out. While this may be the correct policy decision, they have not been consulted by the Treasury and no modelling of this impact on any part of the supply chain has been published. It is not clear what impact this sudden change will have on R&D investment within complex supply chains, such as those in the aerospace and defence sector.
It is now obvious that the single scheme will not function as its name suggests, as the R&D intensive scheme will continue to emulate the current SME model.
Finally, the government’s announcement that it will be closing of the review into R&D must not mark the end of engagement with innovative businesses. Until we have seen legislation enacting these commitments, businesses should proceed with caution.
On the Chancellor’s tax measures, Sam Robinson, SMF Senior Researcher said:
“Today’s cuts to National Insurance rates barely touch the sides of the tax increase from frozen thresholds, meaning they aren’t really a ‘cut’ at all for many households. But these changes do represent a welcome rebalancing of personal taxes, shifting away from national insurance towards income tax, which covers a broader range of earnings including pensions and rental income.
Out of all the Autumn Statement’s measures, full expensing has by far the biggest potential to stimulate economic growth. But given the big price tag associated with the tax cut, and OBR projections that business investment will decrease as a share of GDP, it is vital that full expensing is rigorously monitored to ensure it is as effective in the real world as it looks on paper.”
From a fiscal point of view, the tax cuts announced today are built on sand. Most of the headroom the Chancellor used to deliver them was based on departmental spending projections that seem implausibly low and that few people think can be met. To deliver good news today, Hunt may be kicking the bad news down the road.”
On the neglect of skills and education, Dani Payne, SMF Senior Researcher, said:
“Given the Chancellor’s ambition to build a world-class education and skills system, it is disappointing to see core school spending per pupil being held flat in real terms, and little else announced to support our young people.
The announcement of modest additional funding for apprenticeships is welcome, however it is unlikely that what the sector really needs is a new pilot scheme, as opposed to a whole-sale reform to bring together our post-secondary education systems, encourage growth in technical education and tackle the unproductive competition between HE and FE that leaves both sectors fighting for pupils and funding.
If the government is to truly grow the supply side of the economy, human capital and skills must be at the forefront of our plan for growth and schools, addressing funding and staffing crises to deliver the next generation of skilled young workers and help those already in work to upskill and retrain.”
On measures for long-term unemployment, Jamie Gollings, SMF Deputy Research Director said:
“The Chancellor’s £2.5bn for the long term unemployed, equivalent to roughly £1,500 a head per year, comes with the threat of mandatory work placements and benefits being removed if claimants don’t engage. That will send a shiver down the spine of those off work with mental health issues and disabilities, causing them anxiety that could set people back in their recoveries and push them even further from the job market.
Most of those off work with mental health issues and disabilities want to get back into work, and the investment in such programmes is welcome. Working with employers to build forms of employment that can work around people’s conditions, from remote working to ‘stress-freelancing’, would help to create those routes. Better to do so with a supportive atmosphere that fosters rather than stifles recovery.”
On support for business growth, John Asthana Gibson, SMF researcher said:
“The Chancellor taking forward the Mansion House reforms is a positive outcome from today’s Autumn Statement. Measures that put more cash from pensions funds’ deep pockets into growth hungry scale-ups should be encouraged, and the Government’s intention to channel greater institutional investment through the British Business Bank, something the SMF has called for, should receive particular praise.
However, high growth business not only need to be well-financed, but well-staffed with talented and capable workers to succeed. A lack of human capital, not the financial sort, is the greatest barrier holding back companies in Britain today, and the Chancellor’s lack of ambition to develop the UK’s skills base with significant investments in education and training will weaken the effectiveness of these measures.”
On planning reforms, Gideon Salutin (SMF researcher) and Jamie Gollings (SMF deputy research director) said:
“A permitted development right to convert single family homes into duplexes is a good idea on paper. Yet such measures have been tried in a number of cities, including Brisbane, Chicago, New York, and Toronto, without increasing actual housing supply because they were not combined with appropriate targets and strict regulations.
If the government really wants to increase housing supply, it will need to undertake more ambitious planning reform to fast-track large housing projects that maximise the number of units permitted on a lot, and twin this with tight affordability rules to ensure that new capacity genuinely drives down costs.
Other housing measures in the statement are similarly welcome, but not enough to address the crisis. £450m to the local authority housing fund to deliver 2,400 new homes is a drop in the ocean compared to the scale of social housing waiting lists, while faster processing times may speed approvals but fail to greatly increase stock.”
On green investments, Gideon Salutin, SMF researcher said:
“The Chancellor’s announcement of £4.5 billion through 2030 is a welcome move in the right direction, but is too small. By comparison, the US is pouring over £300 billion into green manufacturing, Japan is offering £120 billion in long term bonds.
Our research benchmarking global green investment shows that the UK would need to immediately budget at least £54 billion over the next ten years – over 12 times the current offer – to match peer countries. The Chancellor has taken a first step by acknowledging the problem, but until he makes larger commitments, the UK will remain a step behind.”
On investment zones, Gideon Salutin said, SMF researcher said:
“Today’s announcement increased the number of investment zones and the length of time they receive subsidies, but failed to increase the money annually being transferred to local authorities. At present, investment zones receive just £16 million annually, increasing average local budgets by just 7.4% according to our research.
Local authorities outside London want to attract more investment, but to do so they need more startup cash. The £16 million cap is too small, and should be boosted by creating a larger funding stream for local authorities or by giving them new financial powers. Extending the program may help reassure private investors, but the major transformations the chancellor is promising cannot be achieved without deeper reform.”
On public sector productivity, Niamh O Regan, SMF researcher said:
“The UK’s public sector productivity has been poor for over two decades, growing just 4% between 1997 and 2018, and so planning to grow this by 0.5% a year, while welcome, is very ambitious. There also appears to be a stark contrast between the Government’s plan for boosting productivity in private and public sector.
The Chancellor said that productivity in other countries is higher due to investment, but this diagnosis seems to be limited to the private sector. The Government plans to improve public sector productivity, largely through adopting new technology, to cut bureaucracy and resolve administrative tasks faster for both the police and the NHS. Technology can help, but doing it well will require up-front investment in time and resources. Trying to do it on the cheap is bound to fail.”
On support for small businesses, Richard Hyde, SMF Senior Researcher said:
“A big impediment to smaller firms investing for growth is cashflow. Without adequate resources at hand investment in capital and workers by entrepreneurs in their small business has to be put off, again and again.
One of the most common and significant constraints on SME cashflow is late payment by customers. It has been estimated that half of invoices issued by SMEs are paid late. The problem has been worsening, with more than £23 billion outstanding and owed to small firms according to the Government in 2022. Research has suggested that as many as 50,000 firms could be going out of business each year because of the culture of poor payment practices in the UK.
The government wants an investment boom in the UK. To achieve that, it is imperative that small firms do not suffer from unnecessary cashflow problems. That is why the announcement in the Autumn statement to use public sector procurement to put obligations on contractors to pay their suppliers on time is welcome. However, it should only be seen as a start. Many businesses in the private sector are late payers too, and these will be unaffected by these measures. A more ambitious agenda is needed.”
On the pensions pot-for-life, Aveek Bhattacharya, SMF Interim Director said:
“Moving from an employer-led pension system to one where each individual has their own ‘pot for life’ could help avoid the clutter and inconvenience that many of us have experienced from accumulating multiple – often small – pots from different jobs. More fundamentally, it could shift the onus for pension savings from bosses to workers, which has the potential to boost engagement, personalisation and value for money.
A forthcoming paper from the Social Market Foundation will explore these issues, and we look forward to informing the consultation announced today.”
The Autumn Statement 2023 – Much Ado About Nothing for private clients?
By Edward Hayes, director in the Private Client team at independent UK law firm Burges Salmon
There had been rumours of seismic changes to UK inheritance tax (perhaps even full abolition), together with reductions in income tax rates and stamp duty land tax.
In practice most measures focused on trading businesses and national insurance contributions, with only a few being directly relevant to high-net-worth individuals and their structures.
There was a welcome extension of the EIS and VCT regimes to 2035 and a commitment to raise a further £5bn over the next five years by tackling the “tax gap” (i.e. ensuring people pay the taxes they owe). Neither of these are significant changes to the status quo.
Perhaps what is more important is what did not change.
There was no mention of inheritance tax in the end and, given that the Chancellor has now committed much of the “headroom” he had for tax cuts, there must be questions as to whether we are likely to see any changes under this government. IHT is unpopular (polling suggests that more than 50% of people think it is either “unfair” or “very unfair”[1]) but only affects the wealthiest 5% or so of estates[2] and does raise c. £7bn each year. It was back in 1995 that John Major said “When it is appropriate and we can afford to do so, I wish to abolish both capital gains tax and inheritance tax”. Apparently we are not there yet.
There was also a conspicuous silence on the taxation of non-domiciliaries (very broadly, those who are tax resident in the UK but who do not consider the UK their permanent home). Labour have repeatedly promised to abolish the non-dom regime and there had been some thought that the Conservatives might attempt to spike Labour’s guns on this topic. Now there will not be any changes until the Spring budget at the earliest. The message to non-doms remains “consider your planning options now”.
[1] How fair is inheritance tax? (yougov.co.uk) [1] Inheritance Tax statistics: commentary – GOV.UK (www.gov.uk)Tom Whittaker, senior associate at independent UK law firm Burges Salmon , says:
“The announcements in the budget are welcome for the AI industry. Government recognises much of what industry has been calling for – investment, access to capital, access to computing capability. These announcements will be well received, coming shortly after the AI Safety Summit at Bletchley Park and industry investments in the UK, with notable AI and tech companies choosing to locate here. However, industry is still calling for more – changes to investment schemes, changes to visa systems to attract more global talent, and improving technology education at all levels. Connected to the Statement, there remains a split about whether the UK is taking the right approach with AI regulation. Some argue that the UK is doing too little, too slowly and that the EU’s proposed AI laws will set the standards in this field. Others argue that the UK is taking the right approach, utilising existing regulators and regulations without burdensome new legislation.”
Oliver Prill, CEO at Tide, the leading financial business platform which has more than 550,000 small business members across the UK, said:
“The Autumn Statement was a missed opportunity at a critical time for SMEs across the UK. Scams, where victims are tricked into sending their money to fraudsters through push payments (APP Fraud), is a devastating form of financial crime, with £485 million lost in 2022 in the UK.
“We want to highlight that the new rules being brought in by the Payment Systems Regulator (PSR) next year will mean that financial institutions could delay payments to small businesses as they undergo review.
“Small businesses tend to be more sophisticated than consumers with ordinary bank accounts. They need their cashflow uninterrupted by reviews, investigations and other fraud prevention measures.
“We call on the Chancellor again to work with the PSR to allow small businesses to opt out of the reimbursement regime, and with HMT, to reconsider their one-size-fits-all approach to fraud prevention.
“At Tide, we work tirelessly to educate our customers and are constantly improving and refining our processes and systems to combat APP Fraud. However, we urge the government to reconsider the detail, its implementation timeline and to step up the pressure on social media and telecommunications firms to play their part in fighting this awful crime.”
Autumn Statement 2023: Lukewarm and politically-driven
Jeremy Hunt’s Autumn Statement has been branded as “lukewarm” and might not enough to shift the political narrative for the Conservatives by the CEO of one of the world’s largest independent financial advisory organisations.
The comments from Nigel Green of deVere Group follow the Chancellor delivering the Autumn Statement 2023 on Wednesday in the House of Commons.
He says: “This was the Chancellor’s main opportunity outside of the Budget to make tax and spending announcements and, with Labour 20 points ahead in the polls, one of the last chances for the government to shift the narrative for the Conservatives ahead of the general election.
“While some measures announced today are clearly to be welcomed, the Statement as a whole was surprisingly lukewarm.
“Despite some positive headline grabbers, including a national insurance cut of 2%, plans for 12 investment zones and a ‘full expensing’ tax cut for businesses, it’s unlikely to significantly improve the financial situation of many households across Britain and, therefore, will do little to move the political needle for the government.
“With the Office for Budget Responsibility confirming that there’s been a turnaround in the Treasury’s coffers, and with government borrowing falling and the income from tax increasing, Hunt missed an opportunity to go much further and do much more to help families and businesses.”
“No substantive changes to income tax, no changes in bands, corporation tax, or inheritance tax.”
The deVere CEO adds that there was “a general sense that the government is stressing that people’s personal finances are their own responsibility” amid emphasis on incentivising work and attempts to put money back into individuals’ pockets.
This, he says, reinforces how working alongside a financial advisor is likely to be beneficial.
“Recognising that personal finances are one’s own responsibility promotes financial independence and resilience. Working with an independent financial advisor not only streamlines the decision-making process but also instils confidence and discipline in financial management. It transforms personal finances from a daunting task into a collaborative effort, ensuring that individuals are well-equipped to secure their financial future with informed choices and strategic planning.”
The deVere CEO concludes: “Last year the Autumn Statement was all about saving the country from economic meltdown after the disastrous Truss-Kwarteng mini-budget.
“This year’s was all about the politics ahead of the general election.
“With the fiscal headroom having doubled, Jeremy Hunt missed an opportunity to responsibly deliver more. This is not a game-changer.”
Mansion House Reforms by Martijn de Wever, CEO and founder of Floww, a fintech platform that is addressing a core challenge of venture capital
“The latest announcement from the Chancellor and the British Business Bank is great news for scaling companies in the high-growth tech sector. The UK is a leading force in European technology and innovation, and for us to continue to lead and compete, we must commit to increasing levels of investment. We certainly want to avoid any red tape that might slow the flow of capital into the sector, so I would urge all involved in the Mansion House Reforms to consider how technology can play a role in expediting investment so that UK tech continues to lead the way and scale faster.”
Autumn Statement: Mortgage guarantee scheme extended – Reaction from mortgage broker, Better.co.uk
Found buried in the Autumn Statement is the announcement that the Mortgage Guarantee Scheme will be extended – The Mortgage Guarantee Scheme supports the availability of 95% Loan-to-Value mortgage products.
While the scheme was due to finish on the 31st December 2023, the Government will extend the scheme for an additional 18 months until June 2025 to continue helping prospective borrowers with smaller deposits to buy a home.
Reacting to this news, Amanda Aumonier, the director of mortgage operations at Better.co.uk said: “The mortgage guarantee scheme has been a vital support for first-time buyers facing soaring house prices, enabling them to afford a home with just a 5% deposit. The scheme’s positive impact on the property market cannot be overstated – by lowering the barrier to entry, it’s empowered countless individuals to step onto the property ladder.
“This extension will provide much-needed continuity in supporting those navigating the challenging prospect of affording a home. While the scheme’s success is evident, the government must address the broader challenges that persist in the housing market. Affordability remains a persistent issue, especially in certain regions. To address this, the government should explore comprehensive strategies to enhance housing supply and affordability.
“Extending the mortgage guarantee scheme is a commendable step, but it must be part of a broader commitment to tackle the root causes of the housing crisis by addressing regional disparities, and ensuring that the dream of homeownership is within reach for all aspiring buyers.”
Howard Cox Founder of FairFuelUK and London Mayoral Candidate for Reform UK says:
“Despite no mention of any positive support for drivers, and following FairFuelUK’s widely respected objective Campaigning since 2011, it would be churlish for me not to thank the Chancellor, for maintaining the freeze in Fuel Duty for the 13th year in succession.”
“The threat of the Rishi Sunak’s Budget temporary 5p cut in duty being reversed in the 2024 Budget still hangs over motorists’ heads. That event could have been quashed completely today but the OBR assume the Fuel Duty rise with inflation is part of the anti driver Treasury’s fiscal forecasts. Increasing duty would be economic and political suicide!”
“I must remind his department again, and all that have occupied the Chancellor’s seat since, that inflation could be reduced massively more, had he reduced this needlessly high regressive levy significantly, partnered too, by an effective pump pricing watchdog, a PumpWatch with real teeth. Both should have been in place from today. A missed set of election opportunities that may doom the Conservative Party to the opposition benches for a generation.”
“It’s clear that UK’s 37m drivers persist as pure cash cows, not the fiscal solution to stimulating economic growth they so deserve but remain as a chronic bottomless pit of hard-earned cash to pay of the Government’s mounting debt of fiscal incompetence.”
“Yet another unimaginative, tinkering at the edges, financial statement showing just how clueless this Government is, in going for real and significant economic growth. They will deny this charge of course, but the simple common fiscal sense maxim of putting more money into voters and small businesses’ pockets seems to be lost forever.”
Dominic Rowles, lead ESG Analyst, Hargreaves Lansdown:
“While tax cuts took centre stage in Jeremy Hunt’s Autumn Statement, some efforts were made to enhance the Government’s patchy record on sustainability. They are a welcome response to a series of recent policy shifts that seemed to pose serious challenges to the Government’s 2050 net zero target.
Among the top commitments were an initiative to introduce a cash sweetener of up to £10,000 over 10 years for those living closest to new energy generation and transmission infrastructure. It’s hoped this plan will speed up planning approvals for new infrastructure projects, which have been beset with delays and increased costs in recent years.
The Chancellor also restated his commitment to invest £4.5bn between 2025 and 2030 in strategic manufacturing, which includes £2bn for zero emission investments in the automotive sector, supporting the manufacturing, supply chain and development of zero emission vehicles. This could go some way to placating those automakers that needed to alter their investment plans when the government delayed plans to prohibit the sale of new combustion engine-powered cars in September.
There will also be £960m for a new green industries growth accelerator to support clean energy manufacturing including offshore wind, nuclear, Carbon Capture & Storage and hydrogen.”
Comment from Arjan Verbeek, CEO at Perenna:
“While any extension to the mortgage guarantee scheme will be welcomed by first-time buyers, it is only a quick fix. The reality is that even would-be homeowners with a 5% deposit may find themselves priced out and unable to borrow a large enough loan to get onto the housing ladder. This is, in part, due to a mortgage market dominated by short-term fixed rate products.
“This lack of choice puts all the risk on hard-pressed consumers, limiting their borrowing power at a time when house-prices remain stubbornly high. Instead, we must build the foundations of a fairer housing market increasing the availability of long-term fixes which boost affordability by letting consumers borrow up to 30% more.
“Instead of ballot box boosting short-termism, policymakers and regulators should instead focus on creating a mortgage market that improves access to products that get more first-time buyers onto the housing ladder, better protect homeowners from fluctuating interest rates, and will see housebuilders building again.”
Bradley Post, MD of RIFT, commented:
“At last, a chancellor that actually looks and feels like a chancellor dishing out some much needed respite on taxation both for business in the form of an extension to tax deductibility on investment and for the self employed, plus a significant gesture on individual National Insurance payments.
Today’s electioneering gifts should go someway in helping the nation’s small businesses, with the average employee earning £35,000 now saving £450 each year due to today’s cut in National Insurance contribution by 2% to 10%, plus a welcome boost to drinkers given alcohol duty frozen until August.
But will it all be enough to lift the economy as a whole as Jeremy Hunt has forecast in his speech? Only time will tell.”
CEO and Founder of ID Crypt Global, Lauren Wilson-Smith, commented:
“£500m invested into innovation centres to make the UK an AI powerhouse may be considered by some as money spent to hasten the demise of mankind. So let us hope that this funding is as much to police Artificial Intelligence progress as it is to promote it.
While AI presents a wealth of positive opportunity, it remains in its infancy. So it’s important that any investment involves regulatory measures to ensure that the growing prominence of AI doesn’t jeopardise our online identities and our safety, which have become increasingly prominent in our everyday lives.”
Co-founder and CEO of Searchland, Mitchell Fasanya, commented:
“Great to see the government’s commitment to delivering much needed new homes by way of nutrient mitigation schemes, freeing the planning backlog, and local authority fund investment.
This certainly goes against the previous head in the sand approach that’s been adopted when it comes to actually addressing the housing crisis by improving supply rather than fueling demand.
Of course, we’ve heard many promises of a similar vein before and so we can be forgiven for welcoming today’s news with a degree of scepticism.”
CEO of Yopa, Verona Frankish, commented:
“Last Christmas, the government gave us property market turmoil as a consequence of the mini budget. This year, they’ve saved us from further tears, but they haven’t given us much else to shout about.”
Director of Benham and Reeves, Marc von Grundherr, commented:
“Another underwhelming Autumn Statement where the housing market is concerned. Much like unwrapping a pair of socks on Christmas Day, it lacked imagination and left us feeling largely disappointed.
It’s clear they have run out of ideas when it comes to addressing the current issues plaguing the property market. Hardly surprising when we have housing ministers coming and going more frequently than the postman.”
CEO of Octane Capital, Jonathan Samuels, commented:
“Today’s budget was a missed opportunity to help kick start a property market that has been looking a tad lethargic of late.
Higher mortgage rates and wider market uncertainty have caused the market to cool as a result of a drop in buyer activity and we were hoping that the government would offer up an incentive to entice them back into the fold.”
Managing Director of House Buyer Bureau, Chris Hodgkinson, commented:
“We’ve grown accustomed to the government announcing housing market incentives designed to fuel demand and so an absence of any such initiative today will come as a shock. Instead, they’ve uncharacteristically decided to address the burning issue of supply.
While this will do little to ignite the property market in the short term, it will be beneficial in the long run, provided they actually deliver on their promises.
Managing Director of Final Duties, Jack Gill, commented:
“Hopes of a inheritance tax cut have been dashed today, with the government instead choosing to pander to the masses in order to boost popularity ahead of the next general election.
This is disappointing given that inheritance tax is no longer a tax on the wealthy and more and more of us face falling foul of it as our estates grow in value and become liable.
This is largely due to the over stimulation of the property market in recent years which has pushed house prices to record highs. With property forming the majority of the average person’s estate, the increase in the value of their property is pushing them into inheritance tax territory.
Given that the government is largely to blame for such an out of kilter housing market, you’d have thought they would make amends by reducing their inheritance tax grab – a grab that has seen the total sum of receipts paid increase by 17% in the last year alone.”
Jonathan Andrew, CEO of Bibby Financial Services:
“We welcome the permanent adoption of 100 per cent full expensing on qualifying capital spending. Particularly given the current turbulent market conditions, this will give small and medium sized enterprises (SMEs) a massive confidence boost and underpin their resilience. It presents an opportunity for SMEs to do something different to stay ahead of the competition, whether by investing in cutting edge equipment that improves productivity or by pivoting their business offering.
Andrew Drylie, Investment Manager for Quadri Ventures, commented:
“The Chancellor’s Mansion House Compact was a positive step for early-stage start-ups, unlocking a significant amount of previously untouchable capital from pension funds. However, if the UK is going to deliver on its lofty Silicon Valley aims, capital alone is not enough to get these start-ups off the ground. We need to invest in the infrastructure and people that can allow early-stage businesses to grow, equipping them with the right skills and guidance to support long-term growth plans and ultimately lead innovation initiatives that can help them thrive.”
Al Lakhani, CEO of IDEE, said:
“From a tech perspective, there were positives in Hunt’s speech, but also some glaring holes, not least where cyber security was concerned. As a severe and universal threat to businesses and nation-states alike, it is imperative that the public and private sectors work together to create an environment that allows for the development and adoption of world-class cybersecurity solutions.
“Simplifying R&D tax credits has been a necessity for years, and the Chancellor was right to acknowledge this, albeit very briefly. But it is too early to celebrate; we need to see what shape the reforms will take, and what types of R&D investment will be eligible. Cybersecurity must be one such area, as it is imperative that companies are encouraged to invest in robust cybersecurity infrastructure. What’s more, it would have been positive to see investment in the provision of cyber security training, with the skills gap a major issue for UK businesses. The recent events concerning the British Library should be a timely reminder – not that one is needed – of how hugely disruptive and damaging cyber-attacks can be. Much more can be done to facilitate progress in cutting-edge cyber security, and today was a missed opportunity.”
