Chancellor’s Fiscal Statement
The Chancellor today set out his growth plan, with business measures including:
- Cancelling a planned rise in Corporation Tax, which will remain at 19%.
- Maintaining the Annual Investment Allowance at £1 million permanently, rather than returning it to £200,000 next March, giving 100% tax relief to businesses on plant and machinery investments.
- From 6 November 2022 the 1.25 percentage point rise in National Insurance contributions that came into effect in April this year will be reversed, with savings estimated by the Treasury of £10,000 a year on average for 920,000 businesses.
The statement comes two days after the Government announced details of its support plan to help businesses with rising energy costs.
Commenting on the statement, ADS Chief Executive Kevin Craven said:
“Industry is facing significant global challenges as energy costs rise and supply chains come under pressure.
“Businesses, and especially our manufacturers, will welcome measures announced today including making permanent the £1 million Annual Investment Allowance threshold.
“Generating new business investment in the UK is essential to securing the sustainable growth we need to achieve long-lasting prosperity, and I look forward to working with the new administration to implement their plans.”