UK Finance Minister Announces Permanent Tax Break for Businesses

In a recent report, it has been disclosed that UK Chancellor of the Exchequer, Rishi Sunak, is poised to unveil a permanent tax break for businesses in his Autumn Statement. This new policy, referred to as full expensing, will allow businesses to immediately offset their investment in plant and machinery against tax. Sources from The Times and The Financial Times newspapers suggest that this move aims to boost economic growth and is estimated to be valued at around 9 billion pounds ($11.21 billion) annually. Initially planned to conclude in 2026, the tax break is now anticipated to become a permanent feature.

According to The Financial Times, which cites government officials, the permanent extension of the tax break will be a pivotal reform by Sunak to stimulate growth. Sunak had previously expressed his intention to secure this tax break permanently once the fiscal position allows.

Furthermore, reports from The Times indicate that Sunak intends to decrease the headline rates of national insurance for approximately 28 million individuals. In addition, on the eve of presenting the budget update, Sunak announced an increase in Britain’s national minimum wage by 9.8%, raising it to 11.44 pounds per hour from April 2024, up from the current 10.42 pounds.