British Finance Minister Jeremy Hunt is set to announce a permanent tax break for businesses in his Autumn Statement, according to reports by The Times and The Financial Times. The policy, known as full expensing, allows businesses to immediately offset investments in plant and machinery against tax. This measure is currently worth approximately 9 billion pounds per year and was due to expire in 2026. However, the Financial Times reported that the government plans to extend it permanently as Hunt’s flagship reform aimed at boosting growth.
Hunt has previously expressed his intention of making this tax break permanent when the fiscal position allows. Additionally, he is also expected to cut national insurance rates for around 28 million people in the Autumn Statement.
In another significant announcement ahead of his budget update, Hunt revealed that Britain’s national minimum wage will increase by 9.8% from April 2024, up from its current rate of £10.42 per hour. This increase will benefit around 1 million low-paid workers in the UK.
Photograph: British Chancellor of the Exchequer Jeremy Hunt waits for the start of a speech by Prime Minister Rishi Sunak at a college in north London on November 20th, 2023 (Daniel Leal/Pool via REUTERS/File Photo).