Stormy months ahead lead to Autumn Statement of stability from Chancellor

“This was a statement that focussed on tackling the immediate issues in public finances: giving stability and confidence to business and the City, while ensuring the entire country is aware and prepared for the potential stormy months ahead. It was, as expected, both serious and in line with the narrative the Chancellor had been outlining since taking up the role.

“From a business tax perspective, the majority of announcements were made in an effort to create stability through springing no major surprises, although the changes to the energy profits levy do risk making it harder for the UK to attract the investment it needs in the sector.

“From a personal tax perspective, the biggest story was the extension of the freeze to current income tax and national insurance thresholds, and a reduction in the threshold for the additional 45% rate of income tax.

“One key area to emphasise is the heavy lifting the current high level of inflation is doing in delivering tax revenues.  The combination of frozen tax thresholds and inflation-induced wage increases means more and more people are getting dragged into higher tax rates. 

“This was not a big reforming budget. There was very little to indicate what the future might hold from a tax policy perspective.”

-Ends-

For further information please contact

KPMG Media Relations

Rob Smyth

Rob.smyth@kpmg.co.uk

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 15,300 partners and staff.  The UK firm recorded a revenue of £2.43 billion in the year ended 30 September 2021.

KPMG is a global organization of independent professional services firms providing Audit, Legal, Tax and Advisory services. It operates in 145 countries and territories with more than 236,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. KPMG International Limited is a private English company limited by guarantee. KPMG International Limited and its related entities do not provide services to clients.