“Today’s Autumn Statement unveiled a series of modest announcements aimed at kickstarting economic growth, however, the effectiveness of these measures in collectively jumpstarting the economy remain to be seen. This statement serves as a warmup for a more attention-grabbing spring budget, which the Government will hope aligns with a steadily recovering economy and an impending General Election.
“Businesses will welcome Hunt’s 110 new growth measures, including making full expensing for capex permanent and others designed to remove planning red tape, support entrepreneurs, unlock foreign direct investment, and cut business taxes. The full impact on changes to the UK’s R&D tax regimes - which are to be merged into one, with lower thresholds for businesses to access - remain to be seen.
“There were cuts to National Insurance rates for workers and the self-employed, but most of the announcements leaned towards minor adjustments rather than sweeping reforms. Given that National Insurance rates are under the centralised control of Westminster, this tax reduction will be felt by the working population in Scotland who already pay a higher rate of income tax.
“Eyes now shift to Holyrood and the impending Scottish Budget on December 19. Questions will be asked about potential cuts to both personal and business taxes, and whether Scotland will introduce any similar cuts and growth measures in devolved areas.”
