With the Autumn Statement just a few weeks away, you may be curious about the changes coming into effect next year.
The Autumn Statement is typically delivered by the Chancellor and encompasses decisions that will impact the economic landscape.
Our team has outlined some potential alterations and collected the potential consequences.
In the UK, there are typically two major statements in a year, with the Autumn Statement usually occurring in November or December.
The Autumn Statement provides a fiscal overview and changes in taxation based on the economic situation of the year.
The Chancellor will make formal announcements on various changes during the Autumn Statement, including economic forecasts and targets.
Moreover, some of these changes may affect the financial outlook for businesses and individuals.
National Living Wage Will be Increased
Chancellor, recently confirmed the increase in the National Living Wage.
Starting next April, employees aged 23 and over will earn over £11 per hour.
This means that the annual income of full-time employees will increase by at least £1,000.
Considering factors like inflation, the wage increase only partially alleviates financial pressure on low-income families.
The State Pension Triple Lock
The state pension triple lock is designed to ensure an increase in pension payments every year based on three metrics.
Currently, with wage growth reaching 8.5%, pensions are expected to continue rising.
However, the government may reform the details of the Triple Lock.
It will directly impact pension recipients.
In a previous article, we mentioned that inheritance tax is one of the least popular taxes.
On one hand, it carries a 40% tax rate once the threshold is breached.
On the other hand, inheritance tax is often a significant expenditure, further burdening the heirs.
There have been rumors that inheritance tax might be abolished, even though it’s a substantial source of revenue for the Treasury.