Autumn Statement – Key Takeaways
- Local Housing Allowance Increase: The Local Housing Allowance will be increased to the 30th percentile of local market rents, benefiting around 1.6 million households in both the private and social housing sectors. This increase is expected to equate to £800 per year per household receiving LHA.
- 95% Mortgage Guarantee Scheme Extension: The government-backed 95% Mortgage Guarantee Scheme has been extended until the end of June 2025, providing support for homebuyers.
- Permitted Development Rights: There will be a consultation on a change to Permitted Development Rights, allowing any house to be converted into two flats, provided there is no change to the external appearance.
- Electricity Infrastructure Benefits: Households close to new electricity infrastructure, such as pylons and substations, will receive up to £1,000 per year off their energy bills.
- Planning Application Cost Recovery: From 2024, local authorities will be able to recover the full cost of large-scale planning applications in exchange for a guaranteed date for a planning decision.
- Business Rates Relief Extension: Business rates relief of 75% for the retail, hospitality, and leisure sectors has been extended until 2025.
- Employee National Insurance Cut: Employee National Insurance will be reduced by 2.0% to 10%, benefiting 27 million employees with an average salary saving of £450. This change is set to be introduced from January 6, 2024.
- Self-Employed National Insurance Changes: Class 2 National Insurance payments by self-employed individuals will be abolished, saving the average self-employed person £192 per year. Additionally, Class 4 NI for the self-employed will be reduced from 9.0% to 8.0% from April, saving £150 per self-employed person.
- Universal Credit and Benefits Increase: Universal Credit and other benefits are set to rise by 6.7% from April.
- Inflation Outlook: Core inflation is predicted to fall to 2.8% in 2024, reaching the official target of 2.0% in 2025, though at a slower pace than previously anticipated.
As you might expect the devil is in the detail, and more analysis is expected to emerge in the coming days.
Please note the date this article was published as the law or the essence may have changed since it was posted. You should always seek independent legal and tax advice if you are intending to rely on any of the contents. Unless stated otherwise this article only reflects the position for the Private Rented Sector in England and therefore may not apply to other countries within the United Kingdom.
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