The British finance minister, Jeremy Hunt, is set to announce a permanent tax break for businesses in his Autumn Statement. This policy, known as full expensing, will allow businesses to offset investments in plant and machinery against tax immediately. It is currently worth around 9 billion pounds a year and was set to end in 2026. According to the Financial Times, the permanent extension of this policy will be Hunt’s flagship reform aimed at boosting growth.
Hunt has previously expressed his desire to make the tax break permanent when the fiscal position allows. In addition to this, he is also expected to cut the headline rates of national insurance for approximately 28 million people.
On the eve of delivering his budget update, Hunt announced that Britain’s national minimum wage will increase by 9.8% to 11.44 pounds per hour from April 2024, up from 10.42 pounds. This increase aims to provide a better standard of living for low-income workers and promote economic growth.
Photograph: British Chancellor of the Exchequer Jeremy Hunt waits for the start of a speech by Prime Minister Rishi Sunak at a college in north London, Britain, November 20, 2023. Daniel Leal/Pool via REUTERS/ File Photo