2023 Autumn Statement: what you need to know

On the 22nd of November, Chancellor of the Exchequer Jeremy Hunt presented the 2023 Autumn Statement explaining future plans for fiscal policy.

The main points from the speech were as follows:

  • The employee National Insurance contribution rate will be cut from 12% to 10% on the 6th January 2024. National insurance is a tax on earnings paid by employers and employees. Employees pay national insurance once their income exceeds the £12,750 threshold.
  • Hunt also confirmed that the National Living Wage will be raised from £10.42 an hour to £11.44 an hour. This applies to over 21s and will result in around £570 more per year for 5.5mil UK households. Before the autumn statement the NLW was applicable to over 23s but the age has been lowered.
  • In addition, the National Minimum Wage, which applies to under 18-20 year olds is increasing to £8.60 an hour.
  • The ‘full expensing’ tax break for businesses has been made permanent which will allow for businesses to invest more in machinery and technology. ‘Full expensing’ means purchases on equipment and upgrades by companies will be tax-free and is essentially a tax break for corporations
  • Universal credit will rise by 6.7%, this is a means-tested benefit available for low-income people. This raise is in line with inflation, meaning those on universal credit will not be more well-off after the increase,
  • However, alongside benefit increases the government is cracking down on claimants who they deem able to work but are claiming unemployment benefits.This will include tracking whether Universal Credit claimants have been attending job fairs and interviews and enforcing mandatory work placements for any recipients still unemployed after 18 months.
  • There is a freeze on raising alcohol duty, a tax levied on alcohol, until 1 August 2024.
  • The Office for Budget Responsibility has said there will be a £19 billion cut to public service spending in order to tackle waste.
  • All eligible working parents in England can access 30 hours of free childcare per week for 38 weeks per year from when their child is 9 months old, to when they start school.

Despite these changes, Hunt is operating in a context where the tax-burden is at a 70-year high. High taxes are resulting in increased discontent from Conservative backbenchers and media who see the party as the traditionally low-tax, less public spending party.

Hunt attempted to outline more positive news, opening saying that the economy has grown since the pandemic instead of falling into recession. 

He then stated that “we [the party], reduce debt, cut taxes and reward work. We deliver world-class education. We build domestic sustainable energy and we back British business with 110 growth measures”.

He reinforced this attempt at optimism saying that the economy is predicted to grow by 0.7% in 2024. However this is lower than the Office for Budget Responsibility (OBR)’s 1.8% forecast.

In addition, inflation is expected to fall down to 2.8% by the end of 2024 which is still 0.8% above the Bank of England’s 2% target.


Labour Shadow Chancellor and MP for Leeds West, Rachel Reeves, responded on the Labour Party website:

“The Chancellor claims the economy has ‘turned a corner’, yet the truth is that under the Conservatives growth has hit a dead end.

What has been laid bare today is the full scale of the damage that this government has done to our economy over thirteen years.

And nothing that has been announced today will remotely compensate.”

Rachel Reeves

The autumn statement marks just another part of the Labour-Conservative fight to establish themselves as fiscally responsible ahead of the 2024 General Election.

COP26: A Test of British Soft Power and the World’s Left and Right

Featured Image: Wikipedia

Britain, apparently, used to be known for its common sense. The country with the practicality, wealth and explosive creativity which resulted in the Industrial Revolution; harbinger to this modern age with the steam train, the first ripple in the pond. Britain, the small country which punches above its weight in culture, finance, and reputation. Britain, who contributes around 1.1pc of global climate change emissions, part of a group of countries whose territorial emissions are all around 1pc and count for a staggering third of current emissions. Britain must itself change, but it will only make a difference with allies as united climate change democracies.

A climate change conference overshadowed domestically first before it even began by EU fishing wars and then quickly by the Owen Patterson scandal, COP26 held in Glasgow was fraught full of contradictions for both politicians and activists. Politicians face the issue of coming across as actors rigidly sticking to their own scientific script; there specifically for the start of COP to generate media attention for the issues and there also for their own political gain. Biden fell asleep, hypocritical private jets landed, embarrassing tonka-toy SUVS rolled in, organised Sturgeon hosted whilst advertising her ‘nation in waiting’, and Johnson flexed British political muscle, namely the private sector, in his Bond ticking-bomb opening speech.

Conservatism, liberalism, and socialism all claim to subsume environmentalism under their own ideology, but the irritation remains that none of them alone, or even together, are enough to solve the climate crisis.  You may think of environmentalism as giving back what you receive. Maybe even a mental image of a glistening river: transparent and full of life. Preservation is the cousin of conservatism. So, resisting anthropogenic climate change would be a natural extension of preventing ecological damage. Today’s Conservative MPs voted down an amendment which would have stopped raw sewage being dumped into rivers and coastal areas. This was to protect private companies.

It makes me laugh reading right-wing nonsense arguing that Thatcher was an actual environmentalist based on her ending of coalmines. You can see one of Thatcher’s, and her successor Major, most prominent legacies outside of London, driving anywhere towards Leeds. The ending of trains, the sell-off and running down of them has accelerated our own part in climate change. Prime Minister Johnson has just cancelled the HS2 segment to Leeds, condemning future generations. Meanwhile, days before COP26, Chancellor Rishi Sunak in the budget confusingly cut taxes for domestic flights. Domestic flights should not need to exist in this geographically tiny island.

Liberalism led most of all to climate change, but it is still unfair to blame this crisis on individuals. In conversations with friends, all agree it is an economic privilege to afford long-lasting products and to avoid huge causes of waste such as fast fashion. It was the eco-conscious segment of the middle classes in all advanced big-polluter countries which were ahead of the game with sustainability, and they should be celebrated: people persuading before politicians. Government regulation can avoid environmentalism being seen as a class choice through efficient, affordably costed, and modern public transport from modern tram-trains to cleaner long-distance trains. Recycling should increase to a higher standard each decade and be the same nationally. Further, water fountains in every transport station and every town to eliminate single-use plastic. Retail service-sector Britain needs to be engineered so it takes responsibility for its consumer class.

Climate Change needs to continue being a global bipartisan issue and following the science here will only succeed through strengthening democracies. Collaborative events like COP26 remind us how politicians are flawed, but they establish that democratic world leaders are still our best conduit to the immensely powerful Billionaire monarchs who hold the keys to immediately reducing climate emissions. COP26 was met with anticipation not because of us, but due to the recently elected President Biden, a Democrat ready to reverse recent years of American environmental apathy. The world cannot afford the elected left or right to lurch away from being on the big table, but the planet needs radical climate change activism. The methods should develop – avoiding risk to others and balancing urgency with histrionic fatalism which turns-off the non-converted – and a major aim should be directly protesting to ensure vague targets are upheld.

Britain developed the first COVID-19 vaccine, a miraculous moment around the world. This was a result of the new hard power, a culmination of our brilliant academia and gold-standard scientific research. Like we are seeing globally with the coronavirus, the climate crisis may one day be completely rebalanced by game-changing science, but these complex problems firstly require international political resolve. The planet cannot wait for us to wait. Britain has both soft and hard power. Our political influence will always be limited if we limit ourselves. With Climate Change, act without hypocrisy, with other countries, with science and with integrity. Act with common sense.