When is the 2023 Autumn Statement?

The highly anticipated 2023 Autumn Statement in the UK is just around the corner, taking place on 22nd November at around 12:30pm.

As Chancellor Jeremy Hunt takes the stage after Prime Minister’s Questions, the announcement is expected to last about an hour.

This is a key event for everyone across the UK and landlords and property investors will likely want to know what’s on the cards for the housing market. In this article, Fabrik Property Group recaps the 2023 Autumn Statement and how it could potentially impact landlords and investors.

Autumn Statement 2023 recap

The UK economy is predicted to experience a 0.6% growth rate this year, with an expected increase of 0.7% in the following year, as stated by the Chancellor.

To encourage investments in various sectors, he announced the extension of financial incentives and tax reliefs from five to ten years for Investment Zones and Freeports. Furthermore, he revealed plans to create a new £150 million Investment Opportunity Fund. The government also to allocate £4.5 billion for the manufacturing industry until 2030, with specific funding of £975 million for aerospace firms, £520 million for life sciences such as medical research companies, and £960 million for new green industry firms. Moreover, a sum of £500 million was granted for UK artificial intelligence initiatives.

Additionally, businesses can now claim back 25p in corporation tax for every £1 they invest in IT, machinery, and equipment under the “full expensing” scheme, which has been made permanent.

To provide relief for residents living near power infrastructure, a scheme offering discounts on electricity bills was announced. Hunt has also expressed his commitment to reforming the planning system to hasten planning applications. He proposes that local authorities recover the complete costs of major business planning applications and adhere to guaranteed faster timelines. Failure to meet these timelines will result in automatic refunds of application fees, which will be processed free of charge.

Proposed changes to UK welfare policies include reductions in benefits for those who are unemployed or have disabilities and are not actively seeking employment. However, there are also plans to increase the minimum wage by over a pound to £11.44 per hour from April of next year. The duty on alcohol will remain frozen until next year, with no increases on beer, cider, wine, or spirits. On the other hand, tobacco duty will rise by 2% above inflation, with an additional 10% increase for hand-rolling tobacco. To assist with the rising cost of living, Local Housing Allowance will be unfrozen. Additionally, there are plans to extend the 75% discount on business rates for pubs, restaurants, and leisure establishments for another year.

A sum of £50 million has been designated for apprenticeships, while Class 2 National Insurance will be eliminated for the self-employed. Hunt announced that the government will honour the triple lock by increasing the state pension by 8.5% to £221.20 per week by April 2024. Universal Credit and disability benefits will increase by 6.7% in accordance with the inflation rate from September.

The Chancellor also projected a decline in inflation, forecasting a rate of 2.8% by the end of 2024 and a decrease to the 2% target by 2025.

Property market reaction to the Autumn Statement

Commenting on the Autumn Statement, Dale Anderson said: “Many people will welcome the plans to unfreeze Local Housing Allowance and provide qualifying renters with assistance at a time when rents have hit record highs.

“We also welcome new proposals to speed up the planning process that has been introduced; however; we don’t think this will ease the lack of housing supply across the country – certainly, it is not an overnight fix.

“It comes as no real surprise that the Autumn Statement has failed to address the issues facing the country’s housing crisis and at Fabrik Property Group, we’re disappointed that such an important topic has been overlooked. We firmly believe that for both landlords and tenants, it’s crucial that the government rethinks some of its most recent tax and legislation changes, making it fair for those who rent and for those who provide much-needed rental property to the market.

“Without easing the burden on landlords and investors, we’ll likely see more PRS landlords sell up in the coming years, which will only push rents higher for tenants.”

To discuss your investment option and plan for your next Buy-to-Let purchase, book a free 1:1 call with Fabrik Property Group.

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