Autumn Statement Update for Self-Employed and Small Business Owners

Key Points

• Universal credit & disability benefits increased by 6.7%

• State pension increased to £221.20 a week (8.5%)

• Self-employed Class 2 NICs abolished (£192 saving)

• Class 4 NICs reduced by 1% (Up to £350 savings from April 2024)

• Free childcare for 2-year-olds still on track from April 2024

• No changes to stamp duty, VAT, or corporation tax

• No measures to address "stealth taxes"

Reactions

Labour's Shadow Chancellor Rachel Reeves has criticized the Autumn Statement, calling it "utter nonsense". She said: "Jeremy Hunt's Autumn Statement is a missed opportunity to tackle the cost of living crisis and boost growth. His cuts to National Insurance are welcome, but they are not enough. And his failure to address the stealth taxes levied by the Conservatives will only make the situation worse."

Implications for Self-Employed and Small Businesses

The increase in Universal Credit and the state pension will provide some much-needed relief to many self-employed people and small business owners. The abolition of Class 2 NICs and the reduction in Class 4 NICs will also be welcome news. However, the lack of action on stamp duty, VAT, corporation tax, and stealth taxes is disappointing.

Overall, the Autumn Statement is a mixed bag for self-employed people and small businesses. There are some positive measures, but there is also a lot of room for improvement.