Mixed Autumn Statement for business

Guided by the OBR and against a backdrop of falling inflation, growing GDP and

lower government borrowing than forecast, Hunt outlined 110 measures to help the economy grow.

Easing pressure on employees, the Chancellor dropped NI tax from 12% to 10%, giving the average PAYE employee an additional £450 a year.

Self-employed workers also benefitted with Class 2 National Insurance abolished and Class 4 national insurance also cut to 8%.

However, the biggest boost to business was the decision to make full expensing permanent and freezing the small business multiplier on business rates. However, with the living wage also increased to £11.44, there will be increased costs for employers too.

Neil Carberry, REC chief executive, said: “Making full expensing permanent is great news for business and will drive investment – but only in the sectors that can really benefit from it. Services firms – the bulk of the economy – benefit far less. That’s why freezing the small business multiplier on business rates was an important step, especially when the substantial rise in the minimum wage will stretch many firms after a year of low growth and higher wages already. Changes to national insurance for the self-employed will help, too.’

Tina McKenzie, policy chair at the Federation of Small Businesses (FSB), said: “Jeremy Hunt has today taken very welcome action on late payments, small businesses’ rates, and self-employed taxation. Small businesses – and the 16 million people who work for them – are the route to future growth that will raise living standards across the whole country.

“The Chancellor and his Treasury team deserve credit for driving pro-small business change and for listening to and working closely with FSB and its small business members to address the real concerns of businesses, and acting to help build future prosperity.”