Autumn Statement leaves questions

In yesterdays Autumn Statement>> Chancellor Jeremy Hunt outlined 110 measures through which he hoped to stimulate the British economy. One of the more significant announcements was the cut to National Insurance. Other key measures included an increased National Living Wage and extended full expensing for businesses until 2028-29, aimed at supporting British business and cutting taxes.

However, the news was less optimistic for individuals, as income tax and national insurance thresholds haven’t kept pace with inflation since 2021, leading to a “fiscal drag” that will result in over four million more people paying the 20% income tax rate by 2028. The Office for Budget Responsibility (OBR) also noted a 3.5% drop in real household disposable income per person from 2019-20 to 2024-25, the largest reduction since the 1950s.

Charities received minimal attention, with no specific measures mentioned during the Chancellor’s speech.

AIM Director Lisa Ollerhead said

It is positive to see a rise in the minimum wage – it is always good to see pay increases for hard-pressed staff – but we understand the potential challenge it may cause for museums operating in a difficult funding environment, and with visitors with ever-falling disposable income. 

The extension to business rates reliefs in the retail, hospitality and leisure sector is also welcome and we will be consulting on what impact this may have for members with Colin Hunter, author of our related guidance>> on Business Rates. 

As ever we ask members to contact us for support if their organisation is facing extreme difficulty given the economic climate.” 

Read CFG’s Richard Sagar summary of the Autumn Statement>>

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