Chancellor Jeremy Hunt MP has presented his Autumn Statement to Parliament, which includes 110 growth measures. Making the fiscal announcement to the House of Commons, the Chancellor said his priorities are to “reduce debt, cut taxes, and reward work”.
The OBR expected the economy to grow by 0.6% this year, and forecasts down growth of 0.7% in 2024.
The Treasury has said that Northern Ireland will receive total additional funding of £185m this year, and next year, however it is unclear how much of that will be allocated to repaying overspend.
Treasury figures suggest that the Stormont departmental budget will remain unchanged in cash terms at £13.8bn next year.
Today, Jeremy Hunt MP confirmed an increase in the National Living Wage, which will rise by 9.8% from £10.42 to £11.44 in April, with the policy extended to include workers aged 21 and over.
The main rate of employee National Insurance will be cut by 2 percentage points, down to 10%. Mr Hunt will introduce urgent legislation to effect this change from January 6 2024, rather than April.
According to the Chancellor of the Exchequer, the economy is now 1.8% larger than it was pre-pandemic.
To reform taxes paid by the self-employed, the Class 2 National Insurance tax rate will be abolished, and Class 4 National Insurance tax will be cut to 1%.
The pensions triple lock will remain, with an increase to 8.5%, to state pension credit.
The full expensing scheme, which replaced the Super Deduction and allows businesses to write off the cost of new machinery and equipment from profits, will be made permanent.
As the “Conservative and Unionist Party”, Jeremy Hunt MP also announced an additional £3 million in Levelling Up funding to support the tackling of paramilitarism in Northern Ireland.
A 75% business rates discount for the hospitality, retail, and leisure sectors is being extended for another year. The small businesses multiplier will be frozen for another year.
Mr Hunt announced another £50 million of funding to increase the number of apprenticeships in engineering and other key growth areas.