Jeremy Hunt will visit New York today, followed by a two-day trip to Washington D.C. for the IMF Spring Meetings.
Chancellor in New York seeking to strengthen ties between the British and US economies.
Hunt will amplify UK leadership on international issues at IMF Springs, including support for Ukraine and condemnation of the Iranian regime’s attack on Israel.
Chancellor Jeremy Hunt will today embark on a three-day trip to the U.S., visiting New York before heading to Washington D.C. to attend the annual International Monetary Fund (IMF) Spring Meetings.
The Chancellor will be in New York looking to build upon the rock-solid economic relationship between the UK and US – one which mirrors the strength of the geopolitical alliance between the two and is based on shared values on the world stage.
Mr Hunt will meet with a range of executives from the likes of Bloomberg, Comcast and Blackrock setting out the case for Britain’s financial services and creative industries. Both sectors are important for a UK economy that is bouncing back, with Britain boasting the largest film and TV industry in Europe while also being the largest net exporter of financial services globally.
Jeremy Hunt, Chancellor of the Exchequer, said:“At times of instability across the globe, we are reminded that we are stronger when we stand together. The US is our most important strategic ally and we are both at the forefront of keeping the world safe.
“Our economic relationship sees $1 trillion invested in one another’s countries and I will be looking to deepen it further during my time in New York.”
The Chancellor will then head to Washington D.C. on Wednesday for the IMF’s Spring Meetings, at which he is expected to highlight the professionalism and bravery of Royal Air Force aircraft in intercepting a number of Iranian attack drones fired at Israel.
Additional RAF planes have been deployed to the region and the UK continues to work urgently with regional partners to stabilise the situation. Britain’s position continues to be for an immediate humanitarian pause in Gaza leading to a sustainable ceasefire without a return to destruction, fighting and loss of life, as the fastest way to get hostages out and aid in.
Amid global instability, Mr Hunt will stress the need to stick to a plan for the British economy that has already seen real progress being made – with inflation down from its peak of 11.1% to 3.4%, rising wages consistently outstripping that inflation, and official statistics showing growth across the economy in 2024 thus far.
Such progress helped to deliver record cuts to National Insurance for 29 million working people at the start of April – with the average worker earning £35,000 starting to see the benefits of an over £900 per year saving in their payslips this month – as part of a long-term ambition to end the unfair double tax on work.
The Chancellor will also underline the UK’s unwavering support for Ukraine and how Britain is keeping up pressure on Russia via its sanctions regime – the largest and most severe package ever imposed on any major economy, with over 2,000 individuals and entities now sanctioned. This follows an announcement last week in which Britain acted in conjunction with the U.S. to significantly extend the scope of sanctions on imports of Russian metals by bringing the world’s two largest metal exchanges into the scope of the existing ban.
Mr Hunt will meet with G7 and G20 partners, as well as chairing a meeting of the Five Finance Ministers of Australia, Canada, New Zealand, the United Kingdom and the United States. During his meetings, the Chancellor will promote collaboration on issues including artificial intelligence, global economic security and supply chain resilience. British support for developing countries is also on his agenda, including driving reform of the international financial system so it can support all countries in addressing global challenges.
On his attendance of the IMF Spring Meetings, Jeremy Hunt, Chancellor of the Exchequer, said:“The UK’s resilient economy is on the up, and it is from this improving position that we can be the best partner possible to our friends around the world – including standing steadfast with Ukraine in its fight against President Putin and standing up for Israel’s security.”
The Chancellor last visited the U.S. in October last year, speaking to executives from tech giants including Alphabet, Amazon and Microsoft as he travelled to Los Angeles, San Francisco and Seattle. The U.S. is Britain’s largest single trading partner, worth 17.7% of total UK trade – with this totalling £315.1 billion in the four quarters to the end of Q3 2023.
Boost for millions of motorists as 5p cut to fuel duty for petrol and diesel comes into effect.
Car drivers to save around £50 this year and £250 since the 5p cut was introduced – a £13 billion tax cut for motorists
Follows further tax cuts for working people announced at Spring Budget, rewarding work, boosting growth and helping families with the cost of living.
Millions of drivers across the UK will continue to be supported at the pumps from today (Saturday 23 March) as the extension to the temporary 5p fuel duty cut for petrol and diesel comes into effect – putting yet more money in people’s pockets.
The Chancellor Jeremy Hunt announced the 12-month extension at the Spring Budget, as well as cancelling the planned inflation increase for 2024/25, saving car drivers around £50 this year and £250 since the 5p cut was introduced – a £13 billion tax cut for motorists overall over three years.
The temporary cut was first introduced in March 2022 to combat high fuel prices after global supply chain issues following the pandemic, as well as Russia’s invasion of Ukraine. Today’s extension takes effect as the government continues to support motorists with rising costs.
Taken with recent cuts to National Insurance Contributions – to the tune of around £1800 per household – this is putting even more money in people’s pockets. This is only possible because the government stuck to its plan to boost the economy. The economy has now turned a corner and 2024 is set to be the year that Britain bounces back.
In the past year, inflation has more than halved; the economy has recovered more quickly from the pandemic than first thought; and debt is on track to fall. The government is sticking to the plan to deliver the long-term change our country needs to deliver a brighter future for Britain.
Chancellor for the Exchequer Jeremy Hunt said:“Cutting people’s tax bill, while protecting our public services, is a priority.
“We’re already saving drivers £50 a year and the average earner £900 a year – and if we stick to our plan, we will go even further, rewarding work and growing our economy.”
Energy Security Secretary Claire Coutinho said:“We will always stand by UK drivers and today’s fuel duty cut is just one of the ways we are keeping costs down for families.
“Our plans for a new Pumpwatch will make sure motorists are getting a fair price at the pump.”
To mark the extension coming into effect, the Financial Secretary to the Treasury Nigel Huddleston visited an Asda petrol station in Worcestershire where he met staff and saw the supermarket chain’s more fuel-efficient fleet of vans.
Financial Secretary to the Treasury Nigel Huddleston said:“The last few years have been tough but we’re making real progress – which is why we are able to continue to support motorists for another 12 months.
“By cutting taxes for working families and sticking to the plan, we can keep building a stronger economy and a brighter future where hard work is rewarded”.
RAC head of policy Simon Williams said:“The Government’s decision to extend the 5p duty cut is certainly a help to cash-strapped drivers, particularly as this week wholesale fuel prices have risen on the back of a higher oil price.
“With the creation of Pumpwatch and a price monitoring body on the horizon, there should soon be more pressure than ever on retailers to price fuel fairly, which will ensure it is only drivers who benefit from the duty cut.”
The government’s support on fuel duty is already available for longer than in many countries including Germany, France, and the Netherlands. A large proportion of countries which lowered fuel duty rates after the energy crisis have now ended their support.
The existing duty rates on road fuel gases, which are lower than the equivalent rates on diesel, will also continue to 2032, giving the haulage industry greater certainty over future tax rates and supports the decarbonisation of the UK transport sector.
Today’s extension to the 5p cut follows more tax cuts for working people announced at the Spring Budget, putting over £900 a year back into the average worker’s pocket thanks to changes at Autumn Statement and a second Employee National Insurance tax cut from 10% to 8% in April. The Chancellor has also committed to abolishing National Insurance altogether – end the unfairness of a double tax on work.
Meanwhile pubs, breweries and distilleries will benefit from a further freeze to alcohol duty until February 2025 – which will also save consumers money on their favourite tipple. The six-month alcohol duty freeze announced at Autumn Statement will be extended until 1 February 2025, benefitting 38,000 pubs across the UK, while reducing inflation this year.
Today’s news follows the government’s ongoing work to make sure drivers are getting a fair price at the pump by improving competition in the road fuel market.
Proposals for a new Pumpwatch scheme announced earlier this year will see the UK’s 41.2 million drivers get the latest petrol station prices at the click of a button, transforming how the UK shops for its fuel.
Under the plans, all fuel stations would be legally required to share live information on their pump prices within 30 minutes of any change in price subject to the outcome of the government’s consultation.
This freely available data will enable tech companies to develop new ways for drivers to search for the cheapest fuel while on-the-go and access to this price comparison technology could see drivers save 3p per litre on fuel, while also helping to drive down prices by reigniting competition.
New UK ISA announced at Spring Budget will encourage savers to “Back Britain” and support UK business, helping to build a stronger economy.
Generous £5,000 allowance is on top of existing £20,000 annual ISA subscription limit.
British Savings Bonds, launching in April, will offer a guaranteed interest rate fixed for three years, increasing the savings opportunities available to consumers.
British savers are set for a boost off the back of the brand-new ISA and National Savings & Investments (NS&I) product the Chancellor outlined at Spring Budget.
The new ‘UK Individual Savings Account’ will give savers an extra £5,000 of tax-free investments that must be invested in UK firms – while the British Savings Bonds product will increase opportunities for people to save for the longer term, whilst encouraging retail demand for government financing. Taken together they will foster cultures of saving and investing in the UK.
The UK ISA will ensure that savers will be able to benefit from the growth of UK businesses. This is part of a number of measures the government is taking, building on Mansion House and Autumn Statement 2023 announcements, to strengthen the UK’s capital markets, boost savings, increase pension fund transparency, and facilitate investment in UK companies.
Chancellor Jeremy Hunt said:“This boost for British savers also unlocks long-term investment for Britain. We are sticking to our plan to get the economy growing, and it is right that this growth is fuelled by British innovation and enterprise in the areas where our country does it best.”
The Chancellor’s approach to create a new ISA allowance to invest in the UK will avoid disrupting people’s existing portfolios while rightly incentivising those that want to back Britain and save beyond the standard £20,000 limit.
This includes investment in those burgeoning small and medium enterprises in the high-growth sectors of the future in which Britain holds comparative advantage over its European neighbours, like digital technology – including being a clear artificial intelligence superpower in the west – and the life sciences – with the largest sector in Europe.
Meanwhile, the British Savings Bonds, a three-year savings product offered through NS&I, will go on sale in early April and will be available to consumers across the UK, with a minimum investment of £500 and maximum of £1 million. Consumers will benefit from an interest rate fixed for three years that is in line with NS&I’s requirement to balance the interests of savers, taxpayers and the broader financial services sector.
The timing will coincide with the further cuts to National Insurance for 29 million working people – putting over £900 a year back into the average worker’s pocket when combined with the cuts to Employee and Self-Employed National Insurance announced at Autumn Statement.
These represent personal tax cuts worth £20 billion, reduce the effective personal tax rate for a median earner to its lowest level since 1975, and represent the next step towards the government’s long term ambition to end the unfairness that means if you get your income for having a job you pay two types of tax, but if you get it from others sources you only pay one.
Chancellor expected to unveil a Spring Budget that will deliver long term growth
Jeremy Hunt will set out a plan to build a high wage, high skill economy
Sets out path to more investment, more jobs, more productive public services and lower taxes
The Chancellor will today deliver a Spring Budget that will deliver a long-term plan for growth in the United Kingdom.
Since the Prime Minister set out his five priorities for the government last year, inflation has more than halved from 11% to 4%, the economy has recovered more quickly from the pandemic than first thought, and debt is on track to fall.
Thanks to the stability their economic plan has brought, the country is now at a turning point but there is more work to do to bring inflation down further.
Jeremy Hunt will highlight the government’s focus on the long-term decisions needed to strengthen the British economy and give people the opportunity to build a wealthier, more secure life for themselves and their family.
The Chancellor is expected to say:“In recent times the UK economy has dealt with a financial crisis, a pandemic and an energy shock caused by a war on the European continent.
“Yet despite the most challenging economic headwinds in modern history, under Conservative governments since 2010 growth has been higher than every large European economy – unemployment has halved, absolute poverty has gone down, and there are 800 more people in jobs for every single day we’ve been in office.
“Of course, interest rates remain high as we bring down inflation. But because of the progress we’ve made because we are delivering on the Prime Minister’s economic priorities we can now help families with permanent cuts in taxation.
“We do this not just to give help where it is needed in challenging times. But because Conservatives know lower tax means higher growth. And higher growth means more opportunity and more prosperity.
“But if we want that growth to lead to higher wages and higher living standards for every family in every corner of the country, it cannot come from unlimited migration. It can only come by building a high wage, high skill economy. Not just higher GDP, but higher GDP per head.
“And that’s the difference with the Labour Party. They will destroy jobs with 70 new burdens on employers, reduce opportunities by halving new apprenticeships and risk family finances with new spending that pushes up tax.
“Instead of going back to square one, our plans mean more investment, more jobs, more productive public services and lower taxes – sticking to our plan in a Budget for Long Term Growth.”
Mr Hunt will go on to warn:“An economy based on sound money does not pass on its bills to the next generation.
“When it comes to borrowing, some believe there is a choice between responsibility and compassion. They are wrong.
“It is only because we responsibly reduced the deficit by 80% between 2010 and 2019 that we could generously provide £400 billion to help families and businesses in the pandemic.
“The Labour Party opposed our plans to reduce the deficit every step of the way. But at least they were consistent.
“The Liberal Democrats supported controlling spending in office, but now want to prop up a party after the election that will turn on the spending taps. It’s the difference between Labour with no plan and the Liberal Democrats with no principles.
“But we say something different.
“With the pandemic behind us, we must once again be responsible and increase our resilience to future shocks. That means bringing down borrowing so we can start to reduce our debt.”
Chancellor’s promise of “long-term growth” is “farcical”
Responding to the Chancellor’s promise of a “Budget for Long Term Growth” TUC General Secretary Paul Nowak said: “The Chancellor’s promises are farcical.
“The Conservatives have been in power for 14 years. It’s a bit late for them to come up with a plan for long-term growth – especially when our economy is in recession.
“This is desperate spin from a government that has manifestly failed on growth, living standards and public services.”
Australia’s biggest pension fund to invest more than £18 billion in UK by 2030.
Set to unleash billions in productive finance for innovative businesses in the high-growth sectors of the future like clean energy and digital infrastructure.
Chancellor hails investment as part of vision to make the UK the global capital for capital.
A fresh £8 billion investment from Australia’s biggest pension fund, AustralianSuper, will take its total investment in the UK to over £18 billion by the end of the decade.
It comes after Chancellor Jeremy Hunt met with CEO Paul Schroder, alongside some of the Board, this afternoon and rounds off a day of significant investment announcements, including the government announcing over £360 million of funding for advanced manufacturing.
The Prime Minister attended the groundbreaking of a development site in Swindon today owned by Panattoni, Europe’s largest developer of new build industrial and logistics facilities, which has the potential to create 7,000 jobs for local people and add £1.2 billion to the economy, and the Chancellor visited Siemens Mobility, which revealed a €100 million investment for a manufacturing and research and development centre in Chippenham.
Growing the economy is one of the Prime Minister’s priorities, and is part of the plan to improve economic security and opportunity for everyone. The UK has secured investment from major corporations over the past year, and according to PWC, around 4,000 CEOs see the UK as a top-three priority country for investment, alongside the US and China.
It also follows the announcement of a series of pension fund reforms to back British business and increase returns and transparency for savers, including a new Value for Money (VFM) framework aimed at improving the performance of defined contribution pensions – a market growing rapidly, fuelled by the success of Automatic Enrolment in increasing pension savings by over £26 billion between 2012 and 2022.
Prime Minister Rishi Sunak said:“The raft of investment announcements we have seen today show that the UK remains one of the most attractive places to invest in the world.
“But because of the difficult, long term decisions the government has taken the economy is now turning a corner, and we must stick to the plan – driving investment and growth to deliver long-term change and a brighter future for everyone.”
Chancellor Jeremy Hunt said:“This major investment from AustralianSuper will promote growth and strengthen the UK’s position as a leading financial centre, creating wealth and helping to fund public services.
“Britain continues to be Europe’s leading hub for investment, and it is through commitments like this that we will funnel billions into our brightest, burgeoning businesses to scale up and grow.”
The Australian pension fund industry is the fastest growing in the developed world with assets under management doubling every five years, and the Chancellor has previously referred to the success of the pensions model in Australia, which has pioneered a similar set of reforms to VFM.
AustralianSuper has had a presence in the UK since 2016, with approximately £8 billion currently invested in the UK and holding over £2.5 billion in UK listed equities. It is on track to deploy more than £8 billion of new capital by 2030 into large-scale, long-term investment opportunities in some of the fastest growing sectors in which Britain excels in comparison to its European peers, such as the energy transition and digital infrastructure.
Mr Schroder has praised the UK’s investment opportunities for enabling high-quality, long-term returns for members. In future the company stated it expects £7 of every new £10 invested to be deployed outside Australia, as it pursues the best global investment opportunities and long-term returns for members.
The United Kingdom has the largest pension market in Europe, worth over £2.5 trillion. Last year the Chancellor set out his ‘Mansion House Reforms’ to capitalise upon this, with the possibility to unlock an additional £75 billion for high growth businesses – supporting the Prime Minister’s priority of growing the economy and delivering tangible benefits to pensions savers. These include the ‘Mansion House compact’ which encourages pension funds to invest at least 5% of their assets in unlisted equity, which is in line with the Australian model.
Minister for Investment Lord Johnston said:“Foreign investment is not just about numbers on a spreadsheet. It creates jobs, nurtures skills and unleashes our nation’s innovative spirit. That’s why the UK’s recent trade deal with Australia prioritised boosting investment flows.
“AustralianSuper’s ongoing commitment shows the strong relationship we have built as they create a global centre of excellence in London. We are a top choice for major investments like this, and the Government is committed to promoting the opportunities available to global investors so they choose the UK.”
The UK-Australia free trade agreement, which came into force on 31 May 2023, includes comprehensive provisions on investment, which has made the UK a more attractive place to do business.
Chancellor to announce significant funding package for R&D and manufacturing projects across the life sciences, automotive and aerospace sectors.
£92 million joint government and industry investment to expand facilities to manufacture life-saving medicines and diagnostics products.
£200 million joint investment in zero-carbon aircraft technology to develop a more sustainable aviation sector and almost £73 million in automotive technology.
Follows the Advanced Manufacturing Plan to give the industry the long-term certainty to grow and invest in the UK, backed by £4.5 billion of targeted support announced at Autumn Statement to boost the British manufacturing sector.
Ahead of the Spring Budget this week, the Chancellor Jeremy Hunt has today (Monday 4 March) announced a significant investment package in the UK’s life sciences and manufacturing sectors, as part of the government’s plan to grow the economy, boost health resilience and support jobs across the UK.
The funding will go towards several companies and projects who are making cutting edge technology in sectors key to economic growth and part of wider government support to ensure the UK is the best place to start, grow and invest in manufacturing.
This includes £7.5 million to support two pharmaceutical companies who are investing a combined £84 million to expand their manufacturing plants in the UK. Almac, a pharmaceutical company in Northern Ireland produces drugs to treat diseases such as cancer, heart disease and depression, while Ortho Clinical diagnostics in Pencoed, Wales, is expanding its facilities producing testing products used to identify a variety of diseases and conditions.
These new life sciences investments are the latest step in the government’s plan to grow our economy, encourage innovation and support levelling up with nearly 300 supported jobs across the UK.
The Chancellor is also confirming that companies will soon be able to apply for a share of the £520 million funding for life sciences manufacturing announced at Autumn Statement, with competitions for large scale investments opening for expressions of interest this summer and medium and smaller sized companies in the autumn. The fund is designed to build resilience for future health emergencies such as influenza pandemics and capitalise on the UK’s world-leading research and development.
On top of this, the government has announced almost £73 million in combined government and industry investment for cutting-edge automotive R&D projects to support the development of electric vehicle technology, delivering highly skilled jobs and cementing the UK’s position as a global hub for EV manufacturing.
Supported by more than £36 million of government funding awarded through Advanced Propulsion Centre UK (APC) competitions, this includes four projects which are developing technologies for the next generation of battery electric vehicles, making them more efficient and competitive, led by companies including automotive manufacturers YASA and Empel Systems.
This funding is also supporting a project led by Integrals Power, developing and scaling up high-performance battery systems ahead of testing their mass-commercialisation, enhancing safety, power density, and cost-efficiency.
These projects build on the of the government’s established automotive initiatives. The Autumn Statement provided future certainty, announcing over £2 billion across five years from 2025 to unlock investment in the manufacturing and development of zero emission vehicles, their batteries and supply chain. The government will ensure a seamless transition to the new Auto2030 programme which will deliver support in future, and investors are still able to apply to the current schemes.
The government has already spent over £2 billion to accelerate the uptake of zero emission vehicles, including reducing the upfront cost of electric vehicles and supporting the roll-out of charging infrastructure. The UK’s first ever Battery Strategy published last year outlines our plan for the UK to attract investment and achieve a globally competitive battery supply chain by 2030, with the battery sector alone expected to create 100,000 highly paid and skilled jobs in the UK.
The significant funding package for R&D and manufacturing projects announced today is targeted to support sectors where the UK is or could be world-leading and is designed to unlock investment from the private sector by providing certainty to investors – supporting the government’s priority to grow our economy by protecting existing and creating new jobs, so we can deliver the long-term change our country needs to deliver a brighter future.
Chancellor of the Exchequer Jeremy Hunt said:“We’re sticking with our plan by backing the industries of the future with millions of pounds of investment to make the UK a world leader in manufacturing, securing the highly-skilled jobs of the future and delivering the long-term change our country needs to deliver a brighter future for Britain”.
Business and Trade Secretary Kemi Badenoch said:“Today’s announcement builds on the success of our Advanced Manufacturing plan announced last year, and will ensure we continue to grow the economy, help create jobs and secure the future of great British manufacturing.
“Our plan for the British economy is working – which is why firms like Airbus and BMW are continuing to bet on Britain.”
Science Secretary, Michelle Donelan, said:“The UK’s £108 billion life sciences sector is driven by the pioneering contributions of over 300,000 highly-skilled individuals who transform lives through groundbreaking advancements in drug discovery and diagnostics.
“We fuel this progress by fostering a dynamic environment where cutting-edge technologies like AI and genomics meet world-class research to create the next generation of healthcare solutions, including in our NHS.
“By investing in advanced manufacturing facilities, we are protecting our communities by ensuring we can rapidly respond to future health emergencies and deliver life-saving innovations when they are needed most.”
Further measures include:
As part of the investments announced today, almost £200 million of joint government and industry funding is also going to aerospace R&D projects, supporting the development of energy efficient and zero-carbon aircraft technology and accelerating the transition to net zero aviation.
This includes £40 million which is going towards a project developing zero-carbon aircraft engine technology – led by Cambridge-based Marshall ADG Ltd – and around £96 million is being invested in Airbus-led projects. Airbus, which manufactures almost all its aircraft wings in the UK bringing in jobs and investment to the UK economy – is developing more efficient wing designs and increasing carbon fibre production rates for wing components, reducing CO2 emissions and fuel burn.
Funding for these projects will be delivered through the Aerospace Technology Institute (ATI) programme. It was also confirmed today that the £975 million in aerospace funding over five years from 2025, announced at Autumn Statement, will be allocated to the ATI programme. The programme has facilitated £3.6 billion of joint government and industry R&D investment to date – providing industry with continued confidence and security to invest in the UK for the long term – and includes R&D support for small businesses through the ATI SME competition.
The Chancellor is also announcing up to £120 million increase to the Green Industries Growth Accelerator (GIGA) to further support expansion of low carbon manufacturing supply chains across the UK, lowering costs and accelerating the transition. The government is also confirming today that the total fund, which has now increased to almost £1.1 billion, will be split between the clean energy sectors, with around £390 million earmarked to expand UK-based supply chains for electricity networks and offshore wind sectors, and around £390 million for carbon capture, utilisation and storage and hydrogen sectors.
The remaining £300 million has been previously announced for UK production of the fuel required to power high-tech new nuclear reactors, known as HALEU.
The GIGA funding will enable the UK to seize growth opportunities through the transition to net zero, building on our world-leading decarbonisation track record and forms part of the government’s priority to grow the economy focusing on making the right long-term decisions for a brighter future by creating better-paid jobs and opportunity right across the country.
Energy Security Secretary Claire Coutinho said:“We are backing our green industries with extra cash for the Green Industries Growth Accelerator – taking the total to more than £1 billion.
“We have long been energy pioneers in advanced manufacturing and this will allow us to carry on that great British tradition.
“While we have attracted £300bn in low carbon investment since 2010, with £24bn since September alone, this will help to unlock even more.”
Alongside this, the Chancellor has today set out further details of the two-year £50 million apprenticeship growth sector pilot announced at Autumn Statement.
Following engagement with the sector, from April eligible apprenticeship providers of apprenticeship standards including pipe welder, nuclear technician and laboratory technician will now benefit from targeted payments worth £3k for every start of an apprentice.
It is intended the funding will be used to support providers in making capital investment that will unlock their ability to grow and deliver the standards in scope of the pilot, such as purchasing course specific equipment, tools, and machinery that will last beyond delivery of a single apprenticeship.
This will explore ways to stimulate training and break down barriers to high-quality training in advanced manufacturing and engineering, green industries, and life sciences apprenticeships. Further detail will be set out in upcoming guidance later this month.
Today’s announcements follow £4.5 billion announced at Autumn Statement to increase investment in strategic manufacturing sectors – auto, aero, life sciences and clean energy – across the UK for five years from 2025.
APC Chief Executive Officer Ian Constancesaid:“We’re committed to building the electric vehicle supply chain in the UK.
“By investing in the capability and expertise in this country we will grow businesses and take decisive action towards creating zero tailpipe emission technology. Our latest R&D funding does just that.”
Siemens announces £100m investment for state-of-the-art R&D facility in Britain
Siemens Mobility to invest £100 million in a brand-new manufacturing and R&D centre in Chippenham.
Over 800 skilled workers will build the next generation of rail signalling and control systems for Britain, keeping the rail and transport network on track.
Chancellor champions growth opportunities of innovation in technology on same day that over £360 million of investment into advanced manufacturing is announced.
Siemens has announced it is to invest £100 million in a centre of manufacturing excellence in Wiltshire.
The new cutting-edge facility will replace the company’s current Chippenham factory, from which generations of British workers have designed, manufactured and delivered signalling and control systems for the Elizabeth Line, North Wales Coast, Birmingham New Street and many others across the world since the 19th Century.
The new centre is expected to be operational by 2026, with around 800 skilled manufacturing, research, engineering and reporting roles transitioning to the new site and no interruption in production.
Chancellor of the Exchequer Jeremy Hunt said: ““This new commitment from Siemens is a big boost for Britain’s world-class manufacturing sector and shows our plan for the UK to be the best place to invest and grow a business is working.
“This digital technology will improve the safety, reliability and connectivity of our railways and drive sustainable opportunities in higher-paid jobs and exports – as part of our plan to grow our economy.”
Joint CEO of Siemens Mobility UK & Ireland, Rob Morris, said: “This €115 million investment is a strong commitment to Chippenham and our country.
“Siemens Mobility’s Chippenham site, along with our 30 sites across the country, has been transforming rail, travel, and transport in Britain – and it will continue to do so with cloud-based rail technology connecting the real and the digital worlds, digitalizing rail.
“We are very excited to soon start construction of one of the most sophisticated rail factories, digital engineering and R&D sites in the UK, supporting local jobs and skills for the future. There’s a piece of Britain in everything we build.”
Siemens’ investment comes on the advent of one of the most significant modernisation programmes in two centuries of Britain’s railways, with digital rail systems set to better connect communities and make it easier for people to access a wider range of job opportunities.
The plans are also expected to be a boost for the local economy in Chippenham and the wider Wiltshire region, with Siemens Mobility working closely with local small and medium enterprises across the supply chain. As part of today’s investment, Siemens Mobility will continue to develop and code the digital signalling systems to transform rail travel on the East Coast Main Line.
British manufacturing is of great strategic importance for the country on the global stage. The sector makes up over 40% of all UK exports, employs around 2.6 million people and overtook France for output in 2021. To capitalise on this success, the government published its Advanced Manufacturing Plan last year to ensure the UK continues to lead in the development and deployment of digital manufacturing technologies.
This was published shortly after the Chancellor announced £4.5 billion of funding for strategic manufacturing sectors in the UK as part of his Autumn Statement, including £960 million earmarked for a Green Industries Growth Accelerator to support clean energy.
It was announced today this is to be boosted by an up to further £120 million increase (see above). This funding will be available from next year for five years, providing industry with longer term certainty about their investments in line with Prime Minister’s focus on making long-term decisions to grow the economy.
Mr Hunt also announced Full Expensing to support manufacturers in investing for less. As the biggest British business tax cut in history – made possible by the progress the government has made on the people’s economic priorities – this represents an effective corporate tax cut of £55 billion over the next five years and will help manufacturers invest in plant and machinery technologies.
The Chancellor outlined at a Make UK event last week how this will benefit hard-working Brits and help to close the productivity gap with the likes of France and Germany – two economies which the UK has grown faster than since 2010.
Business and Trade Secretary Kemi Badenoch said: “Our plan for attracting more inward investment into the UK is working.
“From the measures in our advanced manufacturing plan that offer certainty to investors, to promoting the UK at our Global Investment Summit, the Government is making sure that investors, like Siemens, choose the UK.”
Transport Secretary Mark Harper said: “This vital investment will help futureproof our rail network as part of our plan to deliver more reliable journeys for millions of passengers across the country through important upgrades.
“Rail manufacturing plays an important role in our economy, supporting thousands of skilled jobs, with this new facility supporting hundreds more.”
Siemens’ investment comes on the same day that the government announced over £360 million will be invested in advanced manufacturing and the life sciences, securing thousands of jobs and building a stronger economy including through the further investment it will help to leverage over the long-term through the private sector.
The UK has attracted more new investment since 1997 than any other European nation, and last year’s Global Investment Summit confirmed over £29.5 billion of additional investment in Britain.
New plans for public sector productivity will deliver up to £1.8 billion worth of benefits by 2029.
Marks first step in plan to boost productivity, which the OBR say could save up to £20 billion a year by returning to pre-pandemic levels.
Plan will free up thousands of police officer hours spent on admin, to instead help tackle crime, and expand the violence reduction unit model, stopping tens of thousands of violent offences
The Chancellor has today outlined plans to deliver up to £1.8 billion worth of benefits by 2029 by improving public sector productivity, including releasing police time for more frontline work.
The Chancellor is promoting public sector productivity as an alternative to accepting an ever-increasing bill for public services as the government sticks to its plan to move on from the high spending and high tax approach that was necessary to get the UK through the shocks of Covid and Russia’s invasion of Ukraine.
A new focus is needed on the long-term decisions required to strengthen the economy and give people the opportunity to build a wealthier, more secure life for themselves and their family.
Covering frontline services, the plan is designed to help public servants get back to doing what is most important: teaching our children, keeping us safe and treating us when we’re sick.
Chancellor of the Exchequer Jeremy Hunt said:“We shouldn’t fall into the trap of thinking more spending buys us better public services. There is too much waste in the system and we want public servants to get back to doing what matters most: teaching our children, keeping us safe and treating us when we’re sick.
“That’s why our plan is about reaping the rewards of productivity, from faster access to MRIs for patients to hundreds of thousands of police hours freed up to attend burglaries or incidents of domestic abuse.”
According to the Office for Budget Responsibility, returning to levels of productivity pre-pandemic could save £20 billion a year. This will help manage the size of the state in the long term, whilst maintaining public service quality and delivering savings for taxpayers.
Today’s announcement marks the first step towards delivering these savings. Over 130,000 patients a year, including those waiting for cancer results, will receive their test results sooner as a result of over one hundred MRI scanners in England being upgraded with Artificial Intelligence designed to recognise patterns in scans through machine learning which will cut scan times by over a third.
The government also plans to repeat the success of Violence Reduction Units which together with the Grip hot spot policing programme are estimated to have prevented 3,220 hospital admissions from violent injury and stopped 136,000 violent offences since 2019. We are committing £75 million over 3-years to expand the Violence Reduction Unit model across England and Wales, supporting a prevention first approach to serious violence.
Plans are also underway to deliver on the Police Productivity Review which found that up to 38 million hours of officer time could be saved every year. If just a fraction of this time, 500,000 officer hours, was saved then police officers in England could attend an additional 250,000 incidents of domestic abuse or over 300,000 burglaries.
To help get these police officers back to these frontline tasks, over £230 million will fund the rollout of time-saving technology including funding automated redaction of personal information such as name badges in shoplifting incidents, irrelevant faces from body worn cameras and number plates from video evidence.
Interviewing witnesses and victims via video call to improve speed of service; piloting the use of drones as first responders in some police incidents like traffic accidents, to feed information back to first responders on the seriousness of the incident and the resource required; and using AI to triage 101 calls to get members of the public the right support faster.
Today’s plan represents a total £800 million investment by 2029 to deliver £1.8 billion worth of productivity benefits.
This includes:
Saving up to 55,000 hours a year of administrative time in the justice system through digitising jury bundles, new software to streamline parole decisions and provide probation officers with more robust data on whether offenders are safe to release. £170 million will be invested into the justice system to support this.
Reducing Local Authority overspends on children’s social care places across England by making 200 additional child social care places available and reducing local government reliance on costly emergency places for children. £165m of funding will be used to create the additional places to help tackle last year’s overspend of £670 million.
Saving £100m for the public purse by reducing fraud thanks to expanding the use of AI across government to make it easier to spot and catch fraudsters, funded by £34m.
Accelerating delivery of DWP’s existing programme to modernise DWP services and move away from paper-based communications. This will be funded through a £17m commitment.
Cutting the time it takes for planning officers to process applications by 30% through a new AI pilot.
Ensuring more children with additional needs get the support they need to thrive through a £105m to fund an additional wave of 15 special free schools.
Pension funds to publicly disclosure how much they invest in UK businesses Vs those overseas.
Schemes performing poorly for savers won’t be allowed to take on new business from employers.
Changes are part of the government’s plan to improve outcomes for savers and consolidate the pensions market.
The Chancellor has today (2 March) announced pension fund reforms as a further step in the government’s plan to boost British business and increase returns for savers. This includes requirements for Defined Contribution (DC) pension funds to publicly disclosure their level of investment in the UK.
The government’s auto enrolment rollout has driven a huge growth in the amount of investment entering UK pension funds, from less than £90 billion in 2012 to around £116 billion in 2022. However, the disclosure requirements for DC pension funds are currently inconsistent across the market and do not require a breakdown of UK investments, sometimes making it difficult for policymakers and savers to understand where this money is invested.
By ensuring pension funds publicly disclose where they invest and the returns they offer, it will make it possible for employers and savers to compare schemes and make informed choices. The government is embarking on Value for Money (VFM) pension fund reforms to improve outcomes for savers and consolidate the DC pensions market. The reforms will ensure that pension managers are focused on securing good returns for savers.
Under the plans:
By 2027 DC pension funds across the market will disclose their levels of investment in British businesses, as well as their costs and net investment returns.
Pension funds will be required to publicly compare their performance data against competitor schemes, including at least two schemes managing at least £10 billion in assets.
Schemes performing poorly for savers won’t be allowed to take on new business from employers, with The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) having a full range of intervention powers.
The plans are subject to a consultation by the Financial Conduct Authority and build on the Government’s Mansion House compact, that encouraged pension funds to invest at least 5% of their assets in unlisted equity.
Chancellor Jeremy Hunt said: “We have already started on a path to drive growth, unlock capital for our most promising companies and improve outcomes for savers – and these new rules mean employers and savers can see how their money is invested and how the returns compare to other schemes.
“British pension funds appear to contribute less to the UK economy than international counterparts do as they invest less in our domestic businesses. These requirements will help focus minds on how to improve overall returns and outcomes for savers.”
Secretary of State for Work and Pensions, Mel Stride MP, said: “The incredible success of automatic enrolment has opened up a huge opportunity to grow the economy, boost British businesses and fuel our futures. It has helped us transform the pensions landscape over the last decade.
“And our Value for Money framework will take this one step further, focusing pension managers on their number one priority – securing the best possible returns for savers – as well as providing a boost to the wider economy.”
Julia Hoggett, CEO of London Stock Exchange plc and Chair of the Capital Markets Industry Taskforce, said:“Pension holders should know how much is being invested in equities in their home market.
“Investing in UK companies ultimately benefits those companies and the returns they are delivering, which supports the economy and the country in which pension holders live, to everyone’s benefit and in everyone’s interest.”
James Ashton, Quoted Companies Alliance chief executive, said:“There is huge upside to aligning the UK’s financial assets with innovative homegrown ventures that could be tomorrow’s world beaters.
“We welcome these new disclosures and hope they are the first step to many UK pension funds discovering the numerous high-potential companies whose shares are traded on their doorstep.”
Chris Hayward, Policy Chairman of the City of London Corporation, said: “The Mansion House Compact aims to channel long-term capital from pension funds into growth companies.
“It will support high-growth companies to start, scale and stay in the UK. We welcome the Government’s action to support this objective which will turn the dial to drive investment into UK businesses. It is vital that the pension ecosystem focusses on value for money and long-term returns for savers.”
Millions of UK workers see boost in take home pay today as cut to National Insurance shows in January’s payslip as part of plan to reward work and boost growth
Progress made on economy means government is able to cut taxes for hard working people
Saving worth £450 for an average worker earning £35,400 a year
Millions of workers are going to start seeing a boost to their take home pay today as January’s pay comes into bank accounts across the UK.
With millions of monthly earners getting paid today [Wednesday 31 January 2024], a household with two average earners will be starting to see a nearly £1,000 a year benefit from the Chancellor’s record personal tax cut.
Thanks to the progress made against its economic priorities, the government announced it will cut National Insurance by 2p from 12% to 10% at the Autumn Statement and made sure it took effect within weeks of the announcement, as part of its plan to reward work and grow the economy. The change is a more than 15% reduction in National Insurance, saving £450 this year for the average salaried worker on £35,400.
Millions of people working different jobs across hundreds of industries will now be better off. To a pub landlord that’s £418 a year, a bus driver £328, a nurse £527. A teacher will pay £635 less in National Insurance contributions this year.
Today’s historic NICs cut takes effect with the government having faced the legacy of Covid-19, and global instability with war in Ukraine and the Middle East.
In the past year, inflation has halved; the economy has recovered more quickly from the pandemic than first thought; and debt is on track to fall. The government is sticking to the plan and is building a stronger economy where hard work is rewarded and ambition and aspiration are celebrated.
Chancellor of the Exchequer Jeremy Hunt said:“I never shied away from making the tough decisions needed yesterday to cut taxes today.
“This January pay boost for hard-working Brits is part of our plan to grow the economy and build a brighter future where hard work is always rewarded, relieving pressure on UK workers by putting around £450 back in their pockets.”
The cut means that for those on average salaries, personal taxes would be lower in the UK for single parents with no children than every other G7 country, based on the most recent OECD data. The UK also has the most generous starting allowances for income tax and social security contributions in the G7.
To mark the tax cut, earlier this month HMRC launched an online tool to help people understand how much they could save in National Insurance this year.
The tool uses salary information to give employees personalised estimates of how much they could save because of the government’s changes, and is hosted on the government’s cost of living support website on gov.uk.
The last major cut to the current personal tax system of today’s magnitude was when the National Insurance personal allowance increased from £9,880 to £12,570. This was the largest ever cut to a personal tax starting threshold, allowing working people to hold on to an extra £2,690 free from tax whilst last year taking around 2.2 million people out of paying tax altogether.
The cut to National Insurance combined with above-inflation increases to tax thresholds since 2010 means that the average earner will pay over £1,000 less in personal taxes than they otherwise would have done.
The independent OBR says that, by 2028-29 this tax cut will increase the number of people in employment by 28,000 alongside a substantial economic benefit from those in work increasing their hours which the OBR forecast will be equivalent to 79,000 on a full-time equivalent basis. Overall, the OBR says that by 2028-29 this measure will increase the number of hours worked by new and existing employees by 0.3%, or 94,000 in full-time equivalent terms.
At the Autumn Statement the Chancellor Jeremy Hunt announced the biggest package of tax cuts to be implemented since the 1980s. In addition to today’s action, he announced a National Insurance cut for 2 million self-employed people, which will take effect on 6 April 2024 and is worth £350 for the average self-employed person on £28,200.
He also made full expensing permanent, which at £11 billion per year is the biggest business tax cut in modern British history helping businesses invest for less. Over 200 business leaders told the government that it would have the single most transformational impact on business investment and growth.
The OBR says these two measures will increase the number of people in work and grow the economy.
He also announced the biggest ever increase to the National Living Wage, froze alcohol duty for six months and extended cuts to business rates relief for the high street.
Plan for stronger economy will reward hard work, putting £450 back into the pocket of the average worker earning £35,400 a year thanks to National Insurance tax cut from 12% to 10% for 27 million working people from January.
Tax to be cut and simplified for 2 million of the self-employed, abolishing an entire class of NICs and cutting the rate of the NICs top rate from 9% to 8% – with an average total saving of around £350 for someone earning £28,000 a year.
Biggest permanent tax cut in modern British history for businesses will help them invest for less and boost investment by £20 billion per year over the next decade.
Triple lock maintained for pensioners, benefits to rise in line with inflation and Local Housing Allowance increased to continue supporting families with the cost-of-living. Government is making work pay.
National Living Wage rise represents boost of £1,800 to the average annual earnings of a full-time worker, and the Back to Work Plan will help over a million people start, stay, and succeed in work while ensuring tougher consequences for those choosing not to.
Great British pubs, breweries and distillers backed by freezing alcohol duty for six months to August 2024.
Public finances in a better position than in March thanks to government action, with borrowing and debt as a share of the economy down on average across the next five years.
Autumn Statement gets the economy growing, debt falling and helps return inflation to its 2% target – long-term decisions to build a brighter future.
Tax cuts for working people and British business headlined Chancellor Jeremy Hunt’s ‘Autumn Statement for Growth’ yesterday.
Aimed at building a stronger and more resilient economy, the Chancellor set out a plan to unlock growth and productivity by boosting business investment by £20 billion a year, getting more people into work, and cutting tax for 29 million workers – the biggest tax cut on work since the 1980s.
With higher revenues resulting from stronger growth than previously projected and the pledge to halve inflation having been met, the government has stabilised the economy through taking sound decisions. As set out by the Prime Minister this week, the stronger outlook means taxes can now be cut in a serious, responsible way.
To that end, Mr Hunt announced that a 2 percentage point cut to Employee National Insurance from 12% to 10% will come into effect from January 2024.
For the average worker earning £35,400 a year, that amounts to an over £450 annual tax cut – almost immediately improving living standards for millions of people and rewarding hard-work as the government builds an economy for the future.
Taxes for the self-employed will also be cut and reformed. From April 2024, Class 4 NICs for the self-employed will be reduced from 9% to 8% and no self-employed person will have to pay Class 2 NICs, saving the average self-employed person on £28,200 a year £350 in 2024/25.
Taken together, this is a tax cut of over £9 billion per year and represents the largest ever cut to employee and self-employed National Insurance. The independent Office for Budget Responsibility (OBR) says these reductions will lead to an additional 28,000 people entering work.
Cutting National Insurance will not lead to any change in NHS funding or pension payments. Services will remain unchanged and continue to be funded as they are now.
Businesses will also benefit from the biggest business tax cut in modern British history. As signalled at Spring Budget, the Chancellor announced permanent Full Expensing: Invest for Less for those investing in IT equipment, plant, and machinery.
Full Expensing: Invest for Less is an effective permanent tax cut of £11 billion a year, boosting business investment by £14 billion across the forecast period and helping to grow the economy.
With the tax cut now permanent, the UK will continue to have both the lowest headline corporation tax rate in the G7 and the most generous capital allowances in the OECD group of major advanced economies, such as the United States, Japan, South Korea and Germany.
Since the introduction of the super deduction – the predecessor to full expensing – in 2021, investment in the UK has grown the fastest in the G7.
To further ensure that work pays, Mr Hunt confirmed that the National Living Wage will increase by nearly 10% to £11.44 an hour from April 2024, the largest ever cash increase.
The Chancellor also reinforced the new £2.5 billion Back to Work Plan for those with long-term health conditions, disabilities and difficulties finding employment, which includes tough new sanctions for those who can work but choose not to.
The Chancellor also announced that the government will honour its commitment to the triple lock in full, with the state pension to increase by 8.5% in April in what is the second biggest ever cash increase. Universal Credit and other working age benefits will also be boosted by 6.7% in April, in line with September’s inflation figure as is convention.
Further action to help families includes increasing the Local Housing Allowance rate to cover the lowest 30% of rents from April – benefiting 1.6 million households with an average gain of £800 in 2024/25 – and an alcohol duty freeze to 1st August 2024, following common-sense changes of the duty system made possible by Brexit.
Measures today take the government’s total support for the cost-of-living between 2022-25 beyond the £100 billion mark, to an average of £3,700 per household.
Accompanying forecasts by the OBR confirm that today’s measures will make the economy permanently bigger, with growth every year of the forecast period. Borrowing and debt as a share of the economy are lower than in Spring this year and next year, with borrowing also lower on average across the forecast by comparison. They also confirm that inflation is expected to return to target in line with the Prime Minister’s economic priorities.
Tax
With inflation halved and debt forecast to fall, Mr Hunt delivered on the government’s commitment to cut taxes – rewarding and incentivising work as part of its long-term plan to grow the economy.
The main rate of Employee National Insurance will be cut by 2 percentage points from 12% to 10%, coming into effect from January 2024 – delivering the benefit of a tax cut quickly for 27 million workers.
The combined rate of income tax and National Insurance for employees paying the basic rate of tax will therefore fall from 32% to 30% – the lowest combined basic rate since the 1980s.
The rate of Class 4 NICs on all earnings between £12,570 and £50,270 will be cut by 1p, from 9% to 8% from April 2024.
The weekly Class 2 NICs – the flat rate compulsory charge which is currently £3.45 paid by self-employed people earning more than £12,570 – will effectively be abolished, with no-one required to pay from April 2024. Access to contributory benefits will be maintained and those currently paying voluntarily will still be able to do so at the same rate. The cuts to Class 4 and Class 2 together amount to a tax cut of £350 a year for the average self-employed person on £28,200, with around 2 million individuals to benefit.
Business
Measures to back British businesses big and small will remove barriers to investment and help to bridge the productivity gap between the UK and its G7 peers – unlocking £20 billion extra business investment per year over the next decade.
Permanent Full Expensing will create the certainty that businesses need to confidently invest for less. A company can now permanently claim 100% capital allowances on qualifying main rate plant and machinery investments, meaning that for every pound invested its taxes are cut by up to 25p.
A business rates support package worth £4.3 billion over the next 5 years will help high streets and protect those small businesses that are the backbones of communities. This includes a rollover of 75% Retail, Hospitality and Leisure relief for 230,000 properties and a freeze to the small business multiplier, which will protect around 90% of ratepayers for a fourth consecutive year.
Pension reforms, including through establishing a new Growth Fund within the British Business Bank, will help unlock an extra £75 billion of financing for high-growth companies by 2030 while providing an extra £1,000 a year in retirement for the average earner saving from 18.
SMEs will be supported with tougher regulation on late payers to improve prompt payments, the expansion of Made Smarter in Great Britain and continued funding for Help to Grow.
The existing R&D Expenditure Credit and Small and Medium Enterprise Scheme will be merged from April 2024, simplifying the system and boosting innovation in the UK.
The rate at which loss-making companies are taxed within the merged scheme will be reduced from 25% to 19%, and the threshold for additional support for R&D intensive loss-making SMEs will be lowered to 30%, benefiting a further 5,000 SMEs.
The Climate Change Agreement Scheme will be extended, giving energy intensive businesses like steel, ceramics and breweries around £300 million of tax relief every year until 2033 to encourage investment in energy efficiency and support the Net Zero transition.
Work and welfare reform
Mr Hunt set out steps to reward work, help make work pay, and reform welfare in recognition of the need to expand the workforce and get those out of work back into work to deliver growth.
The OBR expect that the measures announced at Autumn Statement will support a further 78,000 people into work by 2028-29, on top of the 110,000 resulting from action taken at Spring Budget.
From 1 April 2024, the National Living Wage will increase by 9.8% to £11.44 an hour for eligible workers. For the first time this will include 21- and 22-year-olds. This represents an increase of over £1,800 to the annual earnings of a full-time worker on the NLW and is expected to benefit over 2.7 million low paid workers.
The government will also substantially increase the National Minimum Wage rates for young people and apprentices: for people aged 18-20 by 14.8% to £8.60 an hour, for 16-17 year olds and apprentices by 21.2% to £6.40 an hour.
The government is reforming the Work Capability Assessment to ensure that people who can work are supported to do so via the welfare system. Changes to the activities and descriptors will better reflect the greater flexibility and reasonable adjustments now available in the world of work, preventing some individuals from being deemed not fit for work and ensuring they will be better supported into employment.
The boosting of four key programmes – NHS Talking Therapies, Individual Placement and Support, Restart and Universal Support – will benefit up to 1.1 million people over the next five years.
The government is exploring reforms of the fit note process to provide individuals whose health affects their ability to work with easy and rapid access to specialised work and health support.
Mandatory work placements will boost skills and employability for those who have not found a job after 18 months of intensive support. Those who choose not to engage with the work search process for six months will have their claims closed and benefits stopped.
Infrastructure and levelling up
The Chancellor unveiled a raft of supply-side measures and funding packages to benefit businesses and local communities.
£4.5 billion of funding for British manufacturers in the high-growth industries of the future, including £960 million earmarked for the Green Industries Growth Accelerator to support clean energy.
The government has published its full response to the Winser review and Connections Action Plan, which will cut grid access times for larger projects by half, halve the time to build major grid upgrades and offer up to £10,000 off electricity bills over 10 years for those living closest to new transmission infrastructure.
Three advanced manufacturing Investment Zones will be established in Greater Manchester, East Midlands, and West Midlands – together generating £3.4 billion of private investment and creating 65,000 high-quality jobs within the next decade.
The Investment Zones programme and freeport tax reliefs will be extended from 5 years to 10 years, and a new £150 million Investment Opportunity Fund will support Investment Zones and Freeports to secure specific business investment opportunities.
Four new devolution deals across England have been agreed. Mayoral deals with Greater Lincolnshire and Hull and East Yorkshire, and non-mayoral deals with Lancashire and Cornwall, will boost investment right across the country and deliver on the Prime Minister’s commitment to levelling-up.
£500 million of funding over the next two years will help establish two more Compute innovation centres, supporting the development of artificial intelligence as a growth opportunity for Britain.
The life sciences will also be supported as one of the Chancellor’s key-growth sectors, with £20 million to speed up the development of new dementia treatments coming as part of the government’s full response to the O’Shaughnessy Review of commercial clinical trials in the UK.
To prioritise those who want to invest in the UK’s future, the government has accepted in principle the headline recommendations of Lord Harrington’s review into increasing foreign direct investment. This includes additional resource for the Office for Investment, allowing it to deepen its world-class concierge offer to strategically important investors.
Scottish Secretary Alister Jack said: ““This is an Autumn Statement to support hard working families and grow our country’s economy. It is great news for Scotland.
“The National Insurance cut and increase in the National Living Wage will mean a pay boost for millions of workers right across Scotland. We have honoured the pensions triple lock, meaning pensioners will get a £900 a year increase.
“Vital new support for Scottish businesses will ensure we get growth back into our economy.
“The Chancellor confirmed more than £200 million of new, direct UK Government investment in exciting projects across Scotland, which will create jobs, boost growth and transform communities.
“Plus, there will be an additional £545 million in Barnett Consequentials for the Scottish Government, on top of their record block grant.
“There is a lot to cheer about, not least the duty freeze on spirits to support Scotland’s biggest export industry.”
Rain Newton-Smith, Chief Executive, Confederation of British Industry said:“With tough decisions to be made, the Chancellor was right to prioritise ‘game-changing’ interventions that will fire the economy.
“While the move on National Insurance will give hard-pressed households some much needed breathing room, making full capital expensing a permanent feature of the tax system can be transformational for accelerating growth and improving living standards in the long-term.
“Helping firms to unleash pent-up investment is critical to getting momentum into the economy. Making full expensing permanent will give firms the stability they need to press on with decisions on investment whilst keeping the UK at the top table internationally for investment incentives.
“Moves to speed up planning and grid connectivity should also bolster business confidence to invest in high growth areas like green technologies, renewable energy and advanced manufacturing.”
Eve Williams, General Manager, eBay UK said: “The hundreds of thousands of UK small businesses who use eBay and other online marketplaces will warmly welcome the Chancellor’s cuts in national insurance, more support for the self-employed, as well as the decision to make permanent full expensing.
“There are enormous productivity gains to be had from encouraging the long tail of Britain’s SMEs to invest in existing digital technologies. And given that around half of our online businesses also trade offline, they will benefit hugely from the measures on business rates for retail as well as freezing the business rate multiplier.”
Kate Nicholls, Chief Executive, UKHospitality said:“The Chancellor has brought forward a significant package of business rates measures that will help hospitality businesses across the country. UKHospitality led the calls for Government to extend relief and take action on the multiplier and I’m delighted the Chancellor has acted on our asks.
“Reforms to the planning system to drive quicker approvals will remove a significant barrier to business investment. This type of reform to reward the best performing local planning authorities is exactly the type of change we have been suggesting to drive growth in hospitality.
“We’re also pleased that the Chancellor has acted on our proposal and frozen alcohol duty until August next year to support our supply chain.
“The reduction in National Insurance for employees will put more money in people’s pockets and provide a boost to hospitality in the New Year, often a challenging time for the sector.”
Responding to the freeze in alcohol duty until 1 August 2024
Nuno Teles, Managing Director, Diageo GB said:“Today we raise a glass to the Chancellor and the Prime Minister, who have listened to the industry’s plea for support and decided to back our homegrown sector, that employs so many people across the UK.
“Drinkers and pub-goers across the country now have even more reason to celebrate this festive season. Cheers, Chancellor!”
Responding to the announcement of £7million of funding to tackle antisemitism
Mark Gardiner, Chief Executive, Community Security Trust (CST) said:“The commitment to fund education to tackle antisemitism in universities and schools, alongside the promise to continue the increase in funding for security guarding in the Jewish community, is not just a welcome, concrete contribution to the fight against antisemitism: it sends an important and powerful message to the Jewish community that we have the sympathy and support of government in this struggle.
“We are grateful for the Chancellor for this commitment and we will work with government and communal partners to ensure it is put to effective use.”
Responding to the protection of the Triple lock
Caroline Abrahams, Influencing Director, Age UK said:“We’re pleased and relieved the Government kept its promise to older people to honour the Triple Lock.
“For the 4.2 million older people who recently cut back on food and groceries to make ends meet, having a State Pension that delivers the basics in life is essential.
“Today’s decision also crucially makes is more likely that older people will keep their homes adequately warm this winter, with less fear of facing an energy bill they simply cannot afford to pay come the spring.”
Responding to the support for Veterans
Anna Wright, Chief Executive, the Armed Forces Covenant Fund Trust said: “We are delighted by Chancellor of the Exchequer’s announcement of an additional £10 million to support the Veterans’ Places, People and Pathways programme.
“These projects have delivered significant work already to support our veterans, growing collaborative cross sector working and giving a more seamless interface between statutory and charity or not for profit support.
“They have great potential to help even more veterans, and further develop better, more inclusive local support and better coordination and communication that sustains into the future”
Autumn Statement offers ‘worst case scenario’ for Scotland
Deputy First Minister responds to announcements from Chancellor
The Autumn Statement delivered the ‘worst case scenario’ for Scotland’s finances and failed to live up to the challenges posed by the cost of living and climate crises, Deputy First Minister Shona Robison has said.
The statement failed to deliver the investment needed in services and infrastructure, Ms Robison said. While welcoming the increase in the statutory minimum wage, she said this did not go far enough and fell well short of the Real Living Wage of £12 an hour for 2024-25.
The Deputy First Minister said: ““Today’s Autumn Statement from the UK Government has delivered what is the worst case scenario for Scotland’s finances. Scotland needed a fair deal on investment for infrastructure, public services and pay deals – the UK Government has let Scotland down on every count.
“We needed investment in the services that people rely on and in infrastructure vital to the economy, but the Chancellor’s actions failed to live up to the challenges we are facing as a nation, while not doing enough to help those on the lowest incomes.
“The cut to National Insurance shows the UK Government has the wrong priorities at the wrong time, depriving public services of vital funding. Shockingly, the health funding announced today represents an increase of less than 0.06% to Scotland’s health budget in 2023-24 of £19.138 billion.
“The increases to the state pension and Local Housing Allowance are welcome, but the increase to the minimum wage falls well short of the Real Living Wage. Some of the measures for businesses are also positive, but they come in the face of UK growth having been projected downwards as a result of Brexit and the UK Government’s mismanagement of the economy.
“As global temperatures push ever higher, the Autumn Statement was a chance to fund efforts to cut the UK’s carbon emissions – but it did not. It’s not enough to say they support measures to encourage more renewable energy developments and expand the UK’s electricity grid need. It needs to be matched with funding to actually deliver and help us meet our net zero targets.
“We will now assess the full implications of today’s statement as we develop a Budget that meets the needs of the people of Scotland, in line with our missions of equality, community and opportunity.”
The Scottish Budget will be announced on 19 December.
TUC: Hunt’s Autumn Statement “is a plan for levelling the country down”
Chancellor has confirmed “another round of punishing spending cuts to public services and investment”
Cutting NI won’t make up for “13 continued “years of economic failure on living standards and growth”
Growth forecasts revised down with real wages set to remain below 2008 level until 2028
“The Conservatives have broken Britain. They cannot be trusted to fix it,” says TUC
Commenting on the Autumn Statement, TUC General Secretary Paul Nowak said: “This is not a plan for rebuilding Britain. It’s a plan for levelling the country down.
“At a time when our schools and hospitals are crumbling – the Chancellor has confirmed another round of punishing and undeliverable spending cuts to public services and investment.
“Be in no doubt – if the Tories win the next election, even more austerity is on the way.
“Cutting national insurance won’t make up for 13 continued years of economic failure on wages and living standards.
“Jeremy Hunt has nothing to smile about when working people are on course for a 20-year real wage freeze.
“The Conservatives have broken Britain. They cannot be trusted to fix it.”
Responding to the 2023/24 Autumn Statement, SCVO Chief Executive Anna Fowlie, said: “I share the disappointment of other voluntary sector bodies that this week’s budget Autumn Statement did not recognise the essential services and support of voluntary organisations both in Scotland and across the UK.
“Our sector is a major employer, a partner in delivering public services, and a vital contributor to society and the economy.
“The last few years have been a period of significant change and upheaval for Scottish voluntary organisations, their staff and volunteers, and the people and communities they work with. Rising inflation and the resulting cost-of-living crisis and running costs crisis has strained sector finances and increased demand for the support and services many organisations provide, as demonstrated in our Third Sector Tracker.
“This crisis is not over. We welcome the increase in the National Living Wage which will offer some support to the lowest paid, but to meet the rising cost-of-living this needed to go further, lifting both the National Living Wage and the National Minimum Wage to at least Real Living Wage.
“Our sector is central to building a stronger economy and offers specialist support to those furthest from the labour market and should be included in these plans.
“To protect our sector’s essential contributions for the future, underfunding and a lack of inflation-based uplifts in grants and contracts needed to be addressed in this statement. As people and communities struggle through the largest reduction in household incomes since records began in the 1950s, our support will be needed more than ever.”
