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Chancellor’s Autumn Statement


On 16 November 2022, the Office of National Statistics confirmed that inflation rose to 11.1% (described as ‘the enemy’ by Prime Minister). This was followed by the Chancellor stating, in his Autumn Statement on 17 November 2022, that the UK is officially in recession.

Everyone has been waiting on this Autumn Statement. Despite wage rises of an average of 5.7% (which are rising at their fastest rate in more than 20 years), they still lag behind the soaring cost of living. Therefore, when adjusted for rising prices, wages fell by 2.7%.

This Autumn Statement comes following the resignation of the previous Chancellor Kwasi Kwarteng and undoes most (but not all) of what he had set out in his Growth Plan. However, again, this is another Budget in all but name, but this time it is accompanied by a lot more documents. That includes the Fiscal Report by Office for Budget Responsibility (OBR) which was missing and caused much controversy last time.

The OBR Report contains some harsh reality that Real Household Disposable Income per person is set to fall 4.3% in 2022-23. This is reported to be ­the largest fall since Office of National Statistics records began in 1956-57.

We have highlighted below some noteworthy aspects for Human Resources and Payroll.


The Government accepted in full the recommendations of the Low Pay Commission and confirmed the rates of the National Living Wage (NLW) and National Minimum Wage (NMW) which will come into force as follows:

From 1 April 2023, National Living Wage and National Minimum Wage rates will increase from 1 April 2023 as follows:

  • 23-year-olds and over (National Living Wage): from £9.50 to £10.42 per hour;
  • 21- to 22-year-olds: from £9.18 to £10.18 per hour;
  • 18- to 20-year-olds: from £6.83 to £7.49 per hour;
  • 16- to 17-year-olds; and
  • Apprentice Rate: from £4.81 to £5.28 per hour;
  • Accommodation offset: from £8.70 to £9.10 per hour.

Full details of the increases can be viewed here

Until April 2028 (further period of 2 years), Income Tax and National Insurance will be maintained at their current levels (so called ‘Stealth Taxes’).

From 6 April 2023, decrease in the income tax additional rate threshold from £150,000 to £125,140 resulting in higher earners paying more tax.

Company Cars

From April 2025, Vehicle Excise Duty will be applied on electric cars, vans, and motorcycles.

From 1 April 2025, new zero-emission cars registered after this date will enjoy 1 year only on the lowest rate of Vehicle Excise Duty before moving to the standard rate.

In addition, there would be an increase in Electric Vehicle company car tax by one percentage point year-on-year for three years from 2025.

Currently, Benefit in Kind for a pure Electric Vehicle is 2% (2022/23) and will remain at that rate up to April 2025. It will then increase to:

  • 3% in 2025/26;
  • 4% in 2026/27; and
  • 5% in 2027/28.

We will continue to keep Members updated with developments.