Tag: Treasury

The press release issued by HM Treasury on 8 December 2023.

Economic Secretary to the Treasury Bim Afolami is today announcing further changes to financial services as he marks the anniversary of the Edinburgh Reforms.

• Proposals to help provide support to consumers with their financial decision-making to be the next step in Edinburgh reforms, as Economic Secretary Bim Afolami visits the city to mark a year since their launch.
• Building on the progress made this marks the delivery of the 22nd of the 31 reforms, with plans in place to deliver on the last nine reforms.
• The inaugural Scottish-London Financial Services Forum takes place as Minister also meets with Morgan Stanley in Glasgow.

Economic Secretary to the Treasury Bim Afolami is today (8th December) announcing further changes to financial services as he marks the anniversary of the Edinburgh Reforms with a two-day trip to Scotland.

In the year since the launch of the Edinburgh reforms, the government has already delivered 22 of the 31 reforms including legislation which will overhaul the UK’s regulation of prospectuses, the information available to investors when a firm raises capital and bringing forward secondary legislation to take advantage of the UK’s newfound regulatory freedoms since leaving the EU through the implementation of the Wholesale Markets Review reforms. These changes mean the government is taking forward its ambition for the UK to be the world’s most innovative and competitive global financial centre.

Building on the reforms, the government and Financial Conduct Authority (FCA) has today published a policy paper as part of the joint Advice Guidance Boundary Review, outlining initial proposals for reform to help improve consumer access to support with financial decision making. Currently, there is an ‘advice gap’ between holistic financial advice that is unaffordable for many, and guidance that is free to access but not personal to the consumer. This excludes people with modest investments, leaving them without the tools necessary to reap the significant benefits offered by our world-leading financial services sector.

The government has also today published its response to the Call for Proposals, which sought views on the additional metrics that the FCA and the Prudential Regulation Authority should report against, as part of work to embed their new growth and competitiveness objectives. The regulators have agreed to publish a series of new metrics, which will support scrutiny of their work.

Economic Secretary to the Treasury, Bim Afolami today said:

“My number one priority in this role is to deliver on The Edinburgh Reforms. The reforms have shown the UK’s dedication to fostering a sensible, innovative and robust financial landscape – over the past year we’ve made significant strides towards creating an environment that supports economic growth, openness, and the well-being of savers.

“Already companies worldwide are taking note of the UK’s approach, and we will continue to deliver on our reforms as we make the UK the best place in the world to create and grow a business.”

Miles Celic, Chief Executive Officer, TheCityUK, said:

“The Edinburgh Reforms – and the subsequent Mansion House Reforms – were a positive signal of the government’s commitment to maintaining the UK’s competitiveness as a leading international financial centre. As we progress this important reform agenda, it is critical that government, industry and regulators work together to drive forward the implementation of the reforms and to deliver nationwide economic growth by bolstering the attractiveness of the UK as a place to list, invest, innovate and scale.”

The Minister also held a series of roundtables on asset management and fintech in Edinburgh and visited Morgan Stanley offices in Glasgow. Since 2000 Morgan Stanley’s office has grown from just six people to now employing more than 1,400 people. Edinburgh is currently the largest financial services hub in the UK outside of London, worth more than £14 billion to the UK economy and employing around 136,000 people.

Today is also the first Scottish-London FS forum – chaired by the Economic Secretary in Edinburgh – emphasising the government’s commitment to economic growth and the importance of the Scottish financial sector in supporting this.

At the recent Autumn Statement, the Chancellor announced further advancements in delivering on the Edinburgh Reforms and Mansion House commitments including ambitious steps to increase the flow of capital to promising growth companies while simultaneously improving outcomes for savers and measures to enhance the UK’s financial services regulatory environment.

The trip is the Economic Secretary’s first trip to Scotland since his appointment, he said:

“Edinburgh is a key part of our financial services landscape, and it was really important to me to come and see some of the great work being done here within the first month of my appointment. Scotland is known for its innovation and ingenuity and I’m sure this will be the first of many such visits.”

Sandy Begbie CBE FRSE, Chief Executive, Scottish Financial Enterprise, said:

“We are delighted to welcome the Economic Secretary to the Treasury to Edinburgh for the launch our new UK Government forum – another important recognition of the vital contribution of Scotland’s financial services industry to the UK economy.

“The forum will be an opportunity to discuss our new sector growth strategy, which aims to harness our global leadership in areas like asset management, fintech, and green and sustainable finance, build on our strong foundations in banking, life and pensions and wealth, and unlock our expertise in data, AI and emerging technologies.

“It is also an opportunity to share our insights on the Edinburgh Reforms, a year since they were announced here. The reforms aim to build on the government’s vision for UK financial services to be an open, sustainable, and technologically advanced global centre that delivers for all parts of the UK and its communities.

“Our sector growth strategy is very much aligned with this vision and recognises the UK’s globally respected regulatory environment as an asset we must leverage to attract more investment and jobs to Scotland.”

The press release issued by HM Treasury on 5 December 2023.

Self-employed builder from Hounslow overstated income to claim £50,000 Bounce Back Loan then lost it in scam crypto investment scheme.

Lukasz Nowak, 43, a self-employed builder from Hounslow, West London, was sentenced to 20 months imprisonment, suspended for two years, at Lincoln Crown Court on 27 November 2023. He was also ordered to pay £12,000 compensation to the bank from which he borrowed the money.

Nowak applied for a £50,000 Bounce Back Loan in October 2020. He received the maximum £50,000 loan after stating on the loan application that his business had a turnover of £205,000 for the previous tax year.

But the court heard that Nowak had overstated his income, which was approximately £20,000 for the relevant period, in order to claim the money.

Under the rules of the scheme businesses could claim up to £50,000, depending on their previous year’s turnover, and the money had to be used for the financial support of the business. However Nowak used the loan money to invest in cryptocurrency through an online broker.

But the crypto broker was also committing fraud and stole the full amount of the Bounce Back Loan money that Nowak had believed he was investing. Nowak was later declared bankrupt in July 2021.

Nowak admitted his actions in November 2022, during an investigation by the Insolvency Service and pleaded guilty at a first hearing at Boston Magistrates’ Court on 9 October 2023.

Julie Barnes, Chief Investigator at the Insolvency Service, said:

Lukasz Nowak took advantage of a scheme designed to help those in financial need, without thought for anyone else.

Nowak’s reckless actions, driven by intention to make a personal gain, resulted in loss to the public purse.

His sentence shows that the Insolvency Service will not tolerate abuse of taxpayers’ money.

Her Honour Judge Sjölin Knight also included 200 hours unpaid work and 15 Rehabilitation Activity Requirement days  – a measure which helps to address offending behaviour –  as part of his sentence.

Background

• Lukasz Nowak is of Hounslow. His date of birth is May 1980
• Sentenced for Fraud by False Representation, Section 2, Fraud Act 2006
• Further information about the work of the Insolvency Service, and how to complain about financial misconduct.

The press release issued by HM Treasury on 4 December 2023.

Over £480 million as part of £1.6 billion of climate aid announced by the Prime Minister to help developing countries access climate finance and mobilise private investment.

• innovative mechanism to launch next year with potential to raise £7.5 billion over the next decade and billions more in co-financing for green projects
• two new deals with Senegal and Guyana will support their economic resilience by allowing deferral of debt payments in the wake of climate crises like hurricanes and floods
• UK endorses new Global Climate Finance Framework at COP28 – championing reform of international financial institutions to make them bigger, better and fairer

Billions in climate finance will be mobilised for the global Net Zero transition over the next decade following an initiative from the UK and World Bank at COP28 today, 4 December.

The plans that will unlock private sector investment for innovative projects that tackle climate challenges head on were championed by Treasury Minister Baroness Vere in her speech in UAE to mark Finance Day at COP28.

The launch of Climate Investment Funds (CIF) Capital Market Mechanism next year will see bonds generate up to $750 million per year in new climate finance – $7.5 billion over the next decade – which could in turn attract well over $50 billion in co-financing for climate projects in emerging and developing economies. The intention to launch the mechanism was first announced by Prime Minister Rishi Sunak, then Chancellor, under the UK’s COP26 presidency.

The UK’s finance ambitions at COP28 builds on its COP26 legacy – including a commitment to have the world’s first net zero aligned financial centre to help mobilise finance and tap the power of markets – and its own domestic agenda, with long-term decisions to cut emissions and attract investment reducing a burden that has been historically shouldered by working families.

At COP26 the UK launched the Glasgow Financial Alliance for Net Zero (GFANZ), encouraging firms to set a goal of reaching net zero by 2050, and established the Transition Plan Taskforce to develop best practice guidance on private sector transition planning – a remit it has since delivered upon, with the government shortly to consult on the best way firms can disclose their transition plans in the UK.

Treasury Minister Baroness Vere said:

As a world leader in green finance the UK has a responsibility to lead by example in the climate transition – a responsibility to deliver on our international commitments and help in both greening the international financial system and supporting developing countries in their own transition.

Mobilising billions in climate finance alongside direct investment in – and partnerships with – emerging economies shows that we take this responsibility seriously, and that we will take the long-term decisions necessary to keep 1.5 alive.

In a separate speech at COP28 today, UK Minister for Development and Africa Andrew Mitchell will note the significant finance developing countries need for the climate transition, particularly to adapt to climate impacts.

At the summit, he will bring together financial institutions to agree priorities to mobilise private finance into adaptation and resilience, and announce an up to £484 million portfolio of UK investments. These investments will work with the financial sector to help developing countries access climate finance and mobilise private investment into sustainable development, climate adaptation and resilience, and energy transitions.

This includes:

• £391 million investment in the Private Infrastructure Development Group, who get infrastructure finance moving by developing pipelines of bankable projects in low-carbon, climate-resilient infrastructure
• £44 million of new investments by British International Investment to support the clean energy transition and build climate resilience in Africa and Asia
• £32 million investment, subject to final documentation, in the Green Guarantee Company – the world’s first global hard currency guarantor for climate bonds and loans in developing countries, lowering the cost of financing climate projects in those countries

Collectively these are enabling private and institutional investors to finance the transition – bridging the gap between developing countries’ climate finance needs and public finance available.

A UK-hosted event at COP28 saw some of the world’s biggest creditors come together to offer Climate Resilient Debt Clauses (CRDCs). The UK’s export credit agency UK Export Finance (UKEF) has reached agreement on add CRDCs to its new and existing loan agreements with Senegal and Guyana. A further ten countries are considering the offer. This follows the UK’s announcement at COP27 that UKEF would become the first export credit agency globally to offer CRDCs in its direct lending to low-income countries and small island developing states.

Canada announced that they are to follow in the UK’s footsteps in offering CRDCs – which allow governments to delay their debt repayments and free up resources to fund disaster response and recovery – with France expanding their offer and the World Bank extending their pilot to existing loans. Managing Director of the IMF Kristalina Georgieva also praised the UK at COP28 for shaking up the world in how it deals with the countries and projects hit by natural disasters.

Minister Mitchell together with Prime Minister Mottley of Barbados reiterated the call for all creditors to offer CRDCs by 2025. A further 66 countries joined that call, meaning that 73 nations are now calling for action.

Minister for Development and Africa, Andrew Mitchell, said:

Climate-vulnerable countries urgently need investment at scale to adapt and become resilient to the devastating effects of climate change. The UK is mobilising private finance to support them, including £391 million of new funding for the Private Infrastructure Development Group to develop low-carbon, climate-resilient projects that will attract private investment. And by delivering new Climate Resilient Debt Clauses in Senegal and Guyana, the UK is also allowing affected communities to temporarily pause debt repayments in the wake of a climate disaster, giving them breathing space to recover.

President of Senegal, Macky Sall, said:

Like many other African countries, Senegal is already suffering from the effects of climate change. By including a climate resilient debt clause in our loan from UK Export Finance, Senegal will be able to pause payments when a climate disaster strikes, releasing much needed finance when we need it most to focus on resilience and boosting our economy instead. We call on other creditors to offer climate resilient debt clauses by the end of 2025.

A new partnership will promote greater action from export credit agencies and banks in achieving net zero emissions by 2050. UK Export Finance rallied together export credit agencies from around the world to launch the Net Zero Export Credit Agencies Alliance, which is supported by the UN and will collaborate with GFANZ. This news comes as UKEF unveils over £600 million in transactions supporting climate adaptation and sustainability across Africa and the Middle East.

Tim Reid, CEO of UK Export Finance, said:

I am proud that UK Export Finance has secured agreement from Guyana and Senegal to be the first countries to adopt CRDCs in their direct loans with us. We hope the CRDCs never need to be used, but should Guyana or Senegal experience a severe environmental shock or health crisis, they will have more to spend on what will be most important: protecting their citizens’ lives and livelihoods.

Export credit agencies also play a crucial role in helping businesses to transition towards net zero and shifting finance flows towards climate-friendly projects and investments. The Net Zero ECA alliance announced today mobilises export finance in support of a common goal: achieving global net zero by 2050 and limiting global warming to 1.5 degrees. I look forward to working with UKEF’s counterparts around the world to support this journey.

Through its COP26 Presidency, the UK also supported establishment of global integrity initiatives to develop standards and ensure integrity in voluntary carbon markets, aimed at unlocking this innovative source of finance to accelerate the net zero transition.

In a separate speech, Baroness Vere set out that the government’s forthcoming consultation on voluntary carbon and nature markets will include its intention to endorse the outputs of these initiatives and consider how these could be reflected in UK policy, regulation and guidance. We will also test demand for a new labelling scheme for UK credits, in addition to existing work with the British Standards Institution to develop Nature Investment Standards.

The 2023 Green Finance Strategy outlines how government is increasing flows of finance for climate and nature in the UK and globally. Early next year the government will deliver on a commitment within that strategy, by launching a Transition Finance Market Review to assess how the UK as a financial centre can mobilise transition finance at scale, including to emerging and developing economies.

The press release issued by HM Treasury on 30 November 2023.

The National Insurance Contributions (Reduction in Rates) Bill is being debated in the Commons today (November 11).

• 27 million employees to receive largest ever cut to National Insurance on 6 January 2024
• Today, the House of Commons will debate the National Insurance Contributions (Reduction in Rates) Bill, with the average employee and self-employed set to get an extra £450 a year and £350 a year
• £9 billion a year tax cut means that personal taxes on the average salary are set to be lower in the UK than every other major economy

The National Insurance Contributions (Reduction in Rates) Bill will be debated in the Commons today (November 11) to implement the largest ever cut to National Insurance from 6 January 2024 – less than six weeks’ time from today.

The Bill will be debated throughout the day with Members voting on the Bill this evening. It will then go to the Lords in the middle of December before receiving Royal Assent thereafter.

Reducing Class 1 National Insurance from 12 per cent to 10 per cent will reward work, meaning 27 million employees will effectively pay over 15 per cent less on National Insurance.

To the average employee on a salary of £35,400 this will be worth £450 a year, improving living standards and reducing the current combined tax rate of 32% for employees paying the basic rate of tax to 30% – the lowest since the 1980s.

Chancellor of the Exchequer, Jeremy Hunt, said:

“I’ve been clear from the start that I want to cut taxes. Now, having met our pledge to halve inflation, taxes can be cut in a responsible way that rewards work and helps grow our economy.”

These changes will mean that, for those on average salaries, personal taxes would be lower in the UK than every other G7 country, based on the most recent OECD data.

Taxes for the self-employed will also be cut and reformed. From 6 April 2024, Class 4 NICs for the self-employed will be reduced from 9% to 8% and no self-employed person will have to pay Class 2 NICs, simplifying the tax system and saving the average self-employed person on £28,200 a year £350 in 2024/25.

The changes will see an average full-time nurse on £38,900 receive an annual gain of over £520; an average teacher on £44,300 would receive an additional £630 a year; and a typical self-employed plumber on £34,400 would be £410 better off as a result of these cuts.

Further information

• Those self-employed people with profits between £6,725 and £12,570 will continue to get access to contributory benefits including the State Pension through a National Insurance credit without paying NICs, as they do currently.
• Those self-employed individuals with profits under £6,725 and others who pay Class 2 NICs voluntarily to get access to contributory benefits including the State Pension, will continue to be able to do so. The weekly rate they pay will be frozen at £3.45 for 2024-25, rather than rising by CPI to £3.70.
• Other individuals will continue to be able to pay voluntary Class 3 NICs to help fill gaps in their National Insurance record to qualify for the State Pension, exactly as before. The Class 3 rate will also be frozen at £17.45 per week for 2024-25.
• Further information can be found in the National Insurance Factsheet.

The press release issued by HM Treasury on 30 November 2023.

The Chancellor has welcomed Microsoft’s £2.5 billion investment over the next 3 years to expand its next generation AI datacentre infrastructure.

The Chancellor has today hailed Microsoft’s major investment in AI infrastructure and skills as critical for future growth and innovation, boosting the country as a science and technology superpower.

Microsoft is committing to more than doubling its datacentre footprint in the UK and training more than one million people for the AI economy. It’s also supporting the UK’s growing AI safety and research efforts through partnerships with the government and leading universities.

As part of this, Microsoft will spend £2.5 billion over the next three years to expand its next generation AI datacentre infrastructure, bringing more than 20,000 of the most advanced Graphics Processing Units (GPUs) – which are crucial for machine learning and the development of AI models – to the UK by 2026.

This is the single largest investment in its 40-year history in the country which will see Microsoft grow its UK AI infrastructure across sites in London and Cardiff and potential expansion into northern England, helping to meet the exploding demand for efficient, scalable and sustainable AI specific compute power. Datacentres process, host and store the massive amounts of digital information that is critical for developing AI models.

This £2.5 billion commitment was confirmed on Monday as the Prime Minister Rishi Sunak unveiled £29.5 billion of investment in our most innovative sectors, including tech, life sciences, renewables, housing and infrastructure at the Global Investment Summit.

The UK is already the leading European tech ecosystem, which last year was worth more than double Germany’s and three times as much as France’s. The UK’s AI sector also contributes £3.7 billion to the UK economy and employs 50,000 people across the country.

The Chancellor welcomed Microsoft’s investment on a visit to one of its new, next generation datacentre facilities under construction in North London – which will run fully on renewable energy – where he was joined by Microsoft Vice Chair and President Brad Smith, and Microsoft UK CEO, Clare Barclay.

Prime Minister Rishi Sunak said:

“Microsoft are one of the founding fathers of modern technology and today’s announcement is a turning point for the future of AI infrastructure and development in the UK.

“The UK started the global conversation on AI earlier this month, and Microsoft’s historic investment is further evidence of the leading role we continue to play in expanding the frontiers of AI to harness it’s economic and scientific benefits.

Chancellor of the Exchequer Jeremy Hunt said:

“The UK is the tech hub of Europe with an ecosystem worth more than that of Germany and France combined – and this investment is another vote of confidence in us as a science superpower.

“And it follows the £500m investment in Compute that I committed to in my Autumn Statement last week, taking our investment in advanced computing for AI to £1.5bn – a down payment on the jobs and economic growth it will bring to the UK.”

Secretary of State for Science, Innovation and Technology Michelle Donelan said:

“This is a huge vote of confidence in the strength of the UK’s technology sector, showing Microsoft’s support for the UK to reach superpower heights and cementing our global AI safety leadership.

“This investment not only bolsters critical infrastructure but also ensures that the UK remains at the forefront of driving economic growth and innovation.”

Microsoft vice chair and President Brad Smith said:

“Microsoft is committed as a company to ensuring that the UK as a country has world-leading AI infrastructure, easy access to the skills people need, and broad protections for safety and security.”

Microsoft UK CEO, Clare Barclay, said:

“The pace of change in AI demands action today to build a prosperous future for the UK tomorrow.  Today marks the single largest investment in our more than 40-year history in the UK.

“As business and the public sector embrace the AI opportunity, we are building the infrastructure that will support the growth they need, training the people who can deliver it responsibly and securing our society against emergent threats”.

To support research on AI, Microsoft will extend its Accelerating Foundation Models Research (AFMR) programme to include prioritised access to GPUs for the UK’s science and research community.  AFMR drives interdisciplinary research on AI alignment and safety, beneficial applications of AI, and AI-driven scientific discovery in the natural and life sciences. This new UK effort will aim at harnessing the power of AI to accelerate scientific discovery via multiscale multimodal data generation through prioritised access to Microsoft’s AI tools. This programme includes researchers from the UK’s world leading participating universities including Cambridge, Oxford, Imperial College, UCL, Bath and Nottingham.

To support UK workers across the AI economy, Microsoft will make a multi-million pound investment to train one million people with the skills they need to build and work with AI, including expanded training for people looking to start, or move into, a career in AI.

Working in partnership with multiple learning and non-profit partners, the programme will focus on building AI fluency, developing AI technical skills, supporting AI business transformation, and promoting safe and responsible AI development and use including the first Professional Certificate on Generative AI.

Today’s news comes as the government has agreed a new Online Fraud Charter with tech companies, including Microsoft – the first agreement of its kind in the world – to clamp down on fraud taking place on their platforms.

Under the agreement, platforms will verify new advertisers and promptly remove fraudulent content. Individuals selling items on peer-to-peer platforms such as Facebook Marketplace will also be verified, and there will also be a function for people using online dating services to confirm who they are.

Today’s announcement also comes as the Chancellor announced a further £500 million investment in advanced computing for AI at the Autumn Statement, bringing the government’s total planned public investment in compute to more than £1.5 billion.

These investments will help provide the UK with the infrastructure we need to create a world-leading AI ecosystem where our scientists and researchers continue to make extraordinary new discoveries, benefitting all of society, and making the UK is the best place in the world to start and grow an AI start-up.

The press release issued by HM Treasury on 29 November 2023.

The Autumn Finance Bill 2023 has been published to enshrine a raft of landmark tax changes into law.

Following last week’s Autumn Statement for Growth, the Autumn Finance Bill 2023 has been published today (Wednesday 29 November 2023) to enshrine a raft of landmark tax changes into law.

Measures in the Bill back British business by cutting and simplifying tax to help them invest for less, making full expensing permanent – an effective £11 billion a year corporate tax cut.

It also simplifies R&D and extends the Enterprise Investment Scheme and Venture Capital Trust schemes by an extra ten years each to 2035, ensuring younger companies can attract the finance they need today to become the unicorns of tomorrow.

The majority of tax changes in the Bill will take effect from April 2024.

Financial Secretary to the Treasury, Nigel Huddleston, said:

“This Bill marks our next step in making the UK into the best place in the world to do business – and that’s the way we grow our economy and drive up living standards for all.

“We have the lowest rate of corporation tax in the G7, and full expensing effectively cuts it further by £11 billion a year – the biggest British business tax cut in modern British history to help firms invest for less.”

Permanent full expensing effectively cuts corporation tax by £11 billion per year and ensures that the UK will continue to have both the lowest headline corporation tax rate in the G7 and the most generous capital allowances in the OECD group of major advanced economies, including the United States, Japan, South Korea and Germany. The Autumn Statement is expected to result in an extra £20 billion of investment per year by the end of the decade.

Permanent full expensing helps companies to continuously invest for less by allowing them to deduct 100% of the cost of a wide range of plant and machinery – such as lorries, drills and office chairs – from their profits before tax. For every pound a company invests in plant or machinery, their taxes are cut by up to 25p.

Since the introduction of the super deduction – the predecessor to full expensing introduced in 2021 – investment in the UK has grown the fastest in the G7.

As well as reforms to capital allowances, the Chancellor Jeremy Hunt announced other measures that are also featured in today’s Bill to cut and simplify tax to boost investment and get the economy growing. These include:

• Changes worth £280 million a year to simplify and improve R&D tax reliefs. The government will merge the current R&D Expenditure Credit and SME schemes.
• Legislating for more generous support for loss-making R&D intensive SMEs as announced in spring.
• Extending the sunset clause for the Enterprise Investment Scheme and the Venture Capital Trust scheme to 6 April 2035. -For the creative sector, reforming the film, TV and video games tax reliefs to refundable expenditure credits.
• Expanding the ‘cash basis’ – a simplified way for over four million smaller, growing traders to use a simpler method of calculating their profits and pay their income tax.

The Bill received its first reading in Parliament on Monday 27 November 2023. It will now follow the normal passage through Parliament.

Further information

• Read the Autumn Finance Bill 2023.
• The Bill also legislates for several tax changes which have been previously announced and consulted upon.
• In March 2021, the former Chancellor announced the super-deduction, the biggest two-year business tax cut in modern British history, under which companies saved up to 25p in each pound they invested. Then at Spring Budget 2023, the now Chancellor introduced temporary full expensing, a three-year capital allowances policy which also delivered up to a 25p saving for every £1 invested.
• To provide certainty, when announcing full expensing, the Chancellor was clear that his ambition was to make it permanent when fiscal conditions allowed. At the Autumn Statement, the Chancellor has delivered on this by confirming he will make full expensing permanent. The biggest business tax cut in modern British history over a five year period.
• The changes to National Insurance, which will take effect on 6 January 2024 for employees and 6 April for self-employed people, is being legislated through a separate Bill to the Autumn Finance Bill 2023.

The press release issued by HM Treasury on 24 November 2023.

The City Minister’s forum for examining the impact of technology on the UK’s investment management sector publishes its first report.

Following its re-establishment in April 2023,  the Economic Secretary to the Treasury’s Asset Management Taskforce established a Technology Working Group –  chaired by Michelle Scrimgeour, CEO of Legal and General Investment Management – to examine the impact of new technology on the asset management sector.

This group of industry experts – working closely with the Financial Conduct Authority and HM Treasury – have focused the first phase of their work on creating a blueprint for implementing fund tokenisation in the UK, recognising the revolutionary potential of this technology to propel the asset management sector forward.

The Technology Working Group have today published UK Fund Tokenisation – A Blueprint for Implementation.

The government warmly welcomes this publication. It will advance the wider conversation on the role of technology in asset management, and signals that the UK is welcoming of innovation and open for the exciting new business of the future.

Background

Tokenisation refers to the issuing of units that are recorded on a distributed ledger, as opposed to units that are recorded on more traditional systems of record-keeping. Transitioning the existing operational infrastructure underpinning investment funds onto a distributed ledger will drive further efficiency and transparency within the sector, and improve its competitiveness.

Technology Working Group members

• IA
• LGIM
• HMT
• FCA
• EY
• Legal & General Investment Management
• Fidelity International
• Baillie Gifford
• Blackrock
• JP Morgan Asset management
• M&G
• Schroders
• Archax
• Aquis Exchange
• Augmentum
• Calastone
• CMS
• Copperco
• Galaxy Digital
• Hargreaves Lansdown
• Innovate Finance
• London Stock Exchange Group
• NEST
• Northern Trust

The press release issued by HM Treasury on 24 November 2023.

A bold new vision for welfare backed by nearly £30 billion has been set out by Work and Pensions Secretary Mel Stride.

• Millions of people will benefit from next generation of welfare reforms and extra support for those most in need, announced at Autumn Statement
• Benefits increased by 6.7% and pensions by 8.5%, maintaining commitment to seeing the country through cost of living pressures
• DWP Secretary Mel Stride heralds new era offering a “brighter future for millions”

The plans offer unprecedented employment and health support to help over a million people, while protecting those in most need from cost of living pressures – including raising pensions and benefits and increasing help with housing costs.

Long term decisions to provide unprecedented help for people to move off welfare and into work were at the heart of the Government’s plan for growth set out at the Autumn Statement.

While unemployment has been almost halved since 2010, the £2.5bn Back to Work plan will help thousands of people with disabilities, long-term health conditions and the long-term unemployed, to move into jobs. This comes alongside new guarantees for those on the highest tier of health benefits around keeping benefit support to cushion those who try work.

The transformative employment programme comes as the Government continues to protect the most vulnerable, delivering a Triple Lock-protected boost for pensioners and raising benefits in line with inflation next year, worth £20bn taken together.

The changes mean the full rate of the new State Pension will go up by £17.35 per week, while families on Universal Credit will be on average £470 better off next year.

Around 1.6 million households will also benefit from an increase to the Local Housing Allowance – and will be around £800 a year better off on average. Worth more than £7bn over five years, this commitment will support low-income families in the private rented sector with rent costs and help prevent homelessness.

Secretary of State for Work and Pensions, Mel Stride MP said:

Work changes lives. With the next generation of welfare reforms, we will help thousands of people to realise their aspirations and move off benefits into work, while continuing to support the most in need.

We are taking long term decisions that will build a brighter future for millions, offering unprecedented support to open up opportunity and grow the economy, building on our record that has seen almost four million more people in work since 2010.

Our reforms will remove the barriers to work that we know some people still face, while we’re boosting benefits and pensions to help with cost of living pressures.

Welfare reforms announced at the Autumn Statement include:

• Uprating working age benefits in line with September’s CPI index figure of 6.7%.
• Uprating state pensions in line with September’s earnings figure of 8.5%.
• Increasing the Local Housing Allowance to cover the 30TH percentile – worth an average of £830 per year.
• Expanded jobcentre support including intensive help for those on Universal Credit
• Introducing the Chance to Work Guarantee, which will tear down barriers to work for millions of claimants to try work with no fear of reassessment or losing their health benefit top-ups.
• Increasing mental health support for jobseekers by expanding NHS Talking Therapies treatment and the Individual Placement and Support programme, supporting almost 500,000 over five years.
• Matching 100,000 people per year with existing vacancies and supporting them in that role through Universal Support.
• Rolling out WorkWell to support people at risk of falling into long-term unemployment due to sickness or disability.
• Reforming the Work Capability Assessment for new health benefit claimants to better reflect the opportunities available in the modern world of work.
• Stricter sanctions for people who should be looking for work but aren’t engaging with jobcentre support.
• Building on the Mansion House reforms with further steps to improve private pension returns and grow the economy.
• Introducing new Government powers to request data from organisations such as banks when accounts are showing signals of fraud and error.

The Government’s radical new plan will stem the flow people falling out of work and onto inactivity benefits due to physical or mental health problems, as it takes the long-term decisions to help people realise their dreams to find a job and build a better life.

With this unprecedented level of employment support comes tougher enforcement of sanctions for fit and able people who should be looking for work but aren’t.

Work coaches will use tools to track people’s attendance at jobs fairs and interviews, and close benefit claims of those able to work who have been sanctioned and no longer receiving money after six months.

Taken together, the package will make sure those who are vulnerable or on the lowest incomes are protected, with intensive support to get them back into work, while ensuring fairness to the taxpayer.

The press release issued by HM Treasury on 22 November 2023.

Tax cuts for working people and UK businesses headlined Chancellor Jeremy Hunt’s Autumn Statement.

• Plan for stronger economy will reward hard work, with 800,000 workers in Northern Ireland to benefit from £311 back into their pocket thanks to National Insurance tax cut from January.
• Biggest permanent tax cut in modern UK history for businesses will help them invest for less and boost investment by £20 billion per year over the next decade.
• Government is making work pay with National Living Wage rise to benefit 140,000 in Northern Ireland, representing boost of £1,800 to the average annual earnings of a full-time worker.
• Pubs, breweries and distillers in Northern Ireland backed by freezing alcohol duty for six months to August 2024.
• Public finances in a better position than in March thanks to government action, with borrowing and debt as a share of the economy down on average across the next five years.
• Autumn Statement gets the economy growing, debt falling and helps return inflation to its 2% target – long-term decisions to build a brighter future.

Tax cuts for working people and UK businesses headlined Chancellor Jeremy Hunt’s ‘Autumn Statement for Growth’ today, Wednesday 22 November.

Aimed at building a stronger and more resilient economy, the Chancellor set out a plan to unlock growth and productivity by boosting business investment by £20 billion a year, getting more people into work, and cutting tax for 29 million workers across the UK – the biggest tax cut on work since the 1980s.

Secretary of State for Northern Ireland, Chris Heaton-Harris, said:

“Today’s Autumn Statement provides welcome support for Northern Ireland people on the cost of living, measures for businesses to promote growth, and exciting plans to foster further innovation.

“The National Insurance cut combined with the increase in the National Living Wage will mean a pay boost for nearly one million people in Northern Ireland, while tax measures such as full expensing will benefit local businesses.

“There’s also exciting news that the Belfast region has secured £3.8 million wireless innovation funding to become one of the UK’s 10 5G Innovation Regions.

“Since the 2021 Spending Review, the UK Government has provided an average of £15 billion per year for Northern Ireland public services.

“We will work with the Northern Ireland Executive once power sharing is restored to determine how the UK government can continue supporting Northern Ireland going forward.”

With higher revenues resulting from stronger growth than previously projected and the pledge to halve inflation having been met, the government has stabilised the economy through taking sound decisions. As set out by the Prime Minister this week, the stronger outlook means taxes can now be cut in a serious, responsible way.

To that end, Mr Hunt announced that a 2 percentage cut to Employee National Insurance from 12% to 10% will come into effect from January 2024.

Taxes for the self-employed in Northern Ireland will also be cut and reformed. From April 2024, Class 4 NICs for the self-employed will be reduced from 9% to 8% and no self-employed person will have to pay Class 2 NICs.

Taken together, this is the largest ever cut to employee and self-employed National Insurance – a UK-wide tax cut of £9 billion per year that amounts to a £311 average annual tax cut for 800,000 workers in Northern Ireland, almost immediately improving living standards for hundreds of thousands of people and rewarding hard-work as the government builds an economy for the future.

Businesses will also benefit from the biggest business tax cut in modern British history. As signalled at Spring Budget, the Chancellor announced permanent Full Expensing: Invest for Less for those investing in IT equipment, plant, and machinery.

Full Expensing: Invest for Less is an effective permanent tax cut of £11 billion a year, boosting business investment by £14 billion across the forecast period and helping to grow the economy. With the tax cut now permanent, the UK will continue to have both the lowest headline corporation tax rate in the G7 and the most generous capital allowances in the OECD group of major advanced economies, such as the United States, Japan, South Korea and Germany. Since the introduction of the super deduction – the predecessor to full expensing – in 2021, investment in the UK has grown the fastest in the G7.

To further ensure that work pays, Mr Hunt confirmed that the National Living Wage will increase by nearly 10% to £11.44 an hour from April 2024, the largest ever cash increase.

Measures to help families and businesses include an alcohol duty freeze to 1st August 2024, benefitting pub-goers and industry following common-sense changes of the duty system. Actions today take the government’s total support for the cost-of-living between 2022-25 beyond the £100 billion mark, to an average of £3,700 per household.

As a result of decisions taken today that do not apply UK-wide, the Barnett Formula will provide £185 million to the Northern Ireland Executive over the next two years. Recognising the unique challenges Northern Ireland faces, the UK Government has provided around £7 billion in additional funding to Northern Ireland since 2014, on top of the Barnett-based block grant. The Northern Ireland Budget per person remains around 20% higher than equivalent UK Government spending in other parts of the UK.

Decisions on how the £185 million will be allocated with regard to repaying Reserve claims will be set out in due course, as is routine.

Earlier this year, the UK government agreed the Windsor Framework delivering the smooth flow of trade and protecting Northern Ireland’s place in the Union, providing a good basis for the return of a restored Executive.

The UK government remains attentive to the needs of the people of Northern Ireland in the absence of the Executive, with the Chief Secretary to the Treasury recently granting a request to make available £15 million of reallocated funding to support communities hit by flooding. It was also confirmed today that £3 million of funding will be delivered for the Tackling Paramilitarism Programme, as was announced at Spring Budget.

Accompanying forecasts by the OBR confirm that today’s measures will make the economy permanently bigger, with growth every year of the forecast period. Borrowing and debt as a share of the economy are lower than in Spring this year and next year, with borrowing also lower on average across the forecast by comparison. They also confirm that inflation is expected to return to target in line with the Prime Minister’s economic priorities.

Tax

With inflation halved and debt forecast to fall, Mr Hunt delivered on the government’s commitment to cut taxes – rewarding and incentivising work as part of its long-term plan to grow the economy.

• The main rate of Employee National Insurance will be cut by 2 percentage points from 12% to 10%, coming into effect from January 2024 – delivering the benefit of a tax cut quickly for 27 million workers.
• The combined rate of income tax and National Insurance for employees paying the basic rate of tax will therefore fall from 32% to 30% – the lowest combined basic rate since the 1980s.
• The rate of Class 4 NICs on all earnings between £12,570 and £50,270 will be cut by 1p, from 9% to 8% from April 2024.
• The weekly Class 2 NICs – the flat rate compulsory charge which is currently £3.45 paid by self-employed people earning more than £12,570 – will effectively be abolished, with no-one required to pay from April 2024. Access to contributory benefits will be maintained and those currently paying voluntarily will still be able to do so at the same rate.
• The cuts to Class 4 and Class 2 together amount to a tax cut of £350 a year for the average self-employed person on £28,200, with around 2 million individuals to benefit.

Business

Measures to back British businesses big and small will remove barriers to investment and help to bridge the productivity gap between the UK and its G7 peers – unlocking £20 billion extra business investment per year over the next decade.

• Permanent Full Expensing will create the certainty that businesses need to confidently invest for less. A company can now permanently claim 100% capital allowances on qualifying main rate plant and machinery investments, meaning that for every pound invested its taxes are cut by up to 25p.
• Pension reforms, including through establishing a new Growth Fund within the British Business Bank, will help unlock an extra £75 billion of financing for high-growth companies by 2030 while providing an extra £1,000 a year in retirement for the average earner saving from 18.
• SMEs will be supported with tougher regulation on late payers to improve prompt payments and continued funding for Help to Grow.
• The existing R&D Expenditure Credit and Small and Medium Enterprise Scheme will be merged from April 2024, simplifying the system and boosting innovation in the UK.
• The rate at which loss-making companies are taxed within the merged scheme will be reduced from 25% to 19%, and the threshold for additional support for R&D intensive loss-making SMEs will be lowered to 30%, benefiting a further 5,000 SMEs.
• The Climate Change Agreement Scheme will be extended, giving energy intensive businesses like steel, ceramics and breweries around £300 million of tax relief every year until 2033 to encourage investment in energy efficiency and support the Net Zero transition.

Pay

Mr Hunt set out steps to reward work and help make work pay in recognition of the need to expand the workforce and get those out of work back into work to deliver growth.

• From 1 April 2024, the National Living Wage will increase by 9.8% to £11.44 an hour for eligible workers. For the first time this will include 21- and 22-year-olds. This represents an increase of over £1,800 to the annual earnings of a full-time worker on the NLW and is expected to benefit 140,000 low paid workers in Northern Ireland.
• The government will also substantially increase the National Minimum Wage rates for young people and apprentices: for people aged 18-20 by 14.8% to £8.60 an hour, for 16-17 year olds and apprentices by 21.2% to £6.40 an hour.

Infrastructure and levelling up

The Chancellor unveiled supply-side measures and funding packages to benefit businesses and local communities across Northern Ireland.

• £4.5 billion of funding for UK manufacturers in the high-growth industries of the future, including £960 million earmarked for the Green Industries Growth Accelerator to support clean energy.
• £3.8 million wireless innovation funding confirmed for Belfast region to become one of the UK’s 5G Innovation Regions.
• To prioritise those who want to invest in the UK’s future, the government has accepted in principle the headline recommendations of Lord Harrington’s review into increasing foreign direct investment. This includes additional resource for the Office for Investment, allowing it to deepen its world-class concierge offer to strategically important investors.
• The life sciences will also be supported as one of the Chancellor’s key-growth sectors, with £20 million to speed up the development of new dementia treatments coming as part of the government’s full response to the O’Shaughnessy Review of commercial clinical trials in the UK.

The press release issued by HM Treasury on 22 November 2023.

Tax cuts for working people and British business headlined Chancellor Jeremy Hunt’s ‘Autumn Statement for Growth’ today, Wednesday 22 November.

• Plan for stronger economy will reward hard work, putting £450 back into the pocket of the average worker earning £35,400 a year thanks to National Insurance tax cut from 12% to 10% for 27 million working people from January.
• Tax to be cut and simplified for 2 million of the self-employed, abolishing an entire class of NICs and cutting the rate of the NICs top rate from 9% to 8% – with an average total saving of around £350 for someone earning £28,000 a year.
• Biggest permanent tax cut in modern British history for businesses will help them invest for less and boost investment by £20 billion per year over the next decade.
• Triple lock maintained for pensioners, benefits to rise in line with inflation and Local Housing Allowance increased to continue supporting families with the cost-of-living.
• Government is making work pay. National Living Wage rise represents boost of £1,800 to the average annual earnings of a full-time worker, and the Back to Work Plan will help over a million people start, stay, and succeed in work while ensuring tougher consequences for those choosing not to.
• Great British pubs, breweries and distillers backed by freezing alcohol duty for six months to August.
• Public finances in a better position than in March thanks to government action, with borrowing and debt as a share of the economy down on average across the next five years.
• Autumn Statement gets the economy growing, debt falling and helps return inflation to its 2% target – long-term decisions to build a brighter future.

Tax cuts for working people and British business headlined Chancellor Jeremy Hunt’s ‘Autumn Statement for Growth’ today, Wednesday 22 November.

Aimed at building a stronger and more resilient economy, the Chancellor set out a plan to unlock growth and productivity by boosting business investment by £20 billion a year, getting more people into work, and cutting tax for 29 million workers – the biggest tax cut on work since the 1980s.

With higher revenues resulting from stronger growth than previously projected and the pledge to halve inflation having been met, the government has stabilised the economy through taking sound decisions. As set out by the Prime Minister this week, the stronger outlook means taxes can now be cut in a serious, responsible way.

To that end, Mr Hunt announced that a 2 percentage point cut to Employee National Insurance from 12% to 10% will come into effect from January 2024.

For the average worker earning £35,400 a year, that amounts to an over £450 annual tax cut – almost immediately improving living standards for millions of people and rewarding hard-work as the government builds an economy for the future.

Taxes for the self-employed will also be cut and reformed. From April 2024, Class 4 NICs for the self-employed will be reduced from 9% to 8% and no self-employed person will have to pay Class 2 NICs, saving the average self-employed person on £28,200 a year £350 in 2024/25.

Taken together, this is a tax cut of over £9 billion per year and represents the largest ever cut to employee and self-employed National Insurance. The independent Office for Budget Responsibility (OBR) says these reductions will lead to an additional 28,000 people entering work.

Cutting National Insurance will not lead to any change in NHS funding or pension payments. Services will remain unchanged and continue to be funded as they are now.

Businesses will also benefit from the biggest business tax cut in modern British history. As signalled at Spring Budget, the Chancellor announced permanent Full Expensing: Invest for Less for those investing in IT equipment, plant, and machinery.

Full Expensing: Invest for Less is an effective permanent tax cut of £11 billion a year, boosting business investment by £14 billion across the forecast period and helping to grow the economy. With the tax cut now permanent, the UK will continue to have both the lowest headline corporation tax rate in the G7 and the most generous capital allowances in the OECD group of major advanced economies, such as the United States, Japan, South Korea and Germany.  Since the introduction of the super deduction – the predecessor to full expensing – in 2021, investment in the UK has grown the fastest in the G7.

To further ensure that work pays, Mr Hunt confirmed that the National Living Wage will increase by nearly 10% to £11.44 an hour from April 2024, the largest ever cash increase. The Chancellor also reinforced the new £2.5 billion Back to Work Plan for those with long-term health conditions, disabilities and difficulties finding employment, which includes tough new sanctions for those who can work but choose not to.

The Chancellor also announced that the government will honour its commitment to the triple lock in full, with the state pension to increase by 8.5% in April in what is the second biggest ever cash increase. Universal Credit and other working age benefits will also be boosted by 6.7% in April, in line with September’s inflation figure as is convention.

Further action to help families includes increasing the Local Housing Allowance rate to cover the lowest 30% of rents from April – benefiting 1.6 million households with an average gain of £800 in 2024/25 – and an alcohol duty freeze to 1st August 2024, following common-sense changes of the duty system made possible by Brexit. Measures today take the government’s total support for the cost-of-living between 2022-25 beyond the £100 billion mark, to an average of £3,700 per household.

Accompanying forecasts by the OBR confirm that today’s measures will make the economy permanently bigger, with growth every year of the forecast period. Borrowing and debt as a share of the economy are lower than in Spring this year and next year, with borrowing also lower on average across the forecast by comparison. They also confirm that inflation is expected to return to target in line with the Prime Minister’s economic priorities.

Tax

With inflation halved and debt forecast to fall, Mr Hunt delivered on the government’s commitment to cut taxes – rewarding and incentivising work as part of its long-term plan to grow the economy.

• The main rate of Employee National Insurance will be cut by 2 percentage points from 12% to 10%, coming into effect from January 2024 – delivering the benefit of a tax cut quickly for 27 million workers.
• The combined rate of income tax and National Insurance for employees paying the basic rate of tax will therefore fall from 32% to 30% – the lowest combined basic rate since the 1980s.
• The rate of Class 4 NICs on all earnings between £12,570 and £50,270 will be cut by 1p, from 9% to 8% from April 2024.
• The weekly Class 2 NICs – the flat rate compulsory charge which is currently £3.45 paid by self-employed people earning more than £12,570 – will effectively be abolished, with no-one required to pay from April 2024. Access to contributory benefits will be maintained and those currently paying voluntarily will still be able to do so at the same rate.
• The cuts to Class 4 and Class 2 together amount to a tax cut of £350 a year for the average self-employed person on £28,200, with around 2 million individuals to benefit.

Business

Measures to back British businesses big and small will remove barriers to investment and help to bridge the productivity gap between the UK and its G7 peers – unlocking £20 billion extra business investment per year over the next decade.

• Permanent Full Expensing will create the certainty that businesses need to confidently invest for less. A company can now permanently claim 100% capital allowances on qualifying main rate plant and machinery investments, meaning that for every pound invested its taxes are cut by up to 25p.
• A business rates support package worth £4.3 billion over the next 5 years will help high streets and protect those small businesses that are the backbones of communities. This includes a rollover of 75% Retail, Hospitality and Leisure relief for 230,000 properties and a freeze to the small business multiplier, which will protect around 90% of ratepayers for a fourth consecutive year.
• Pension reforms, including through establishing a new Growth Fund within the British Business Bank, will help unlock an extra £75 billion of financing for high-growth companies by 2030 while providing an extra £1,000 a year in retirement for the average earner saving from 18.
• SMEs will be supported with tougher regulation on late payers to improve prompt payments, the expansion of Made Smarter in Great Britain and continued funding for Help to Grow.
• The existing R&D Expenditure Credit and Small and Medium Enterprise Scheme will be merged from April 2024, simplifying the system and boosting innovation in the UK.
• The rate at which loss-making companies are taxed within the merged scheme will be reduced from 25% to 19%, and the threshold for additional support for R&D intensive loss-making SMEs will be lowered to 30%, benefiting a further 5,000 SMEs.
• The Climate Change Agreement Scheme will be extended, giving energy intensive businesses like steel, ceramics and breweries around £300 million of tax relief every year until 2033 to encourage investment in energy efficiency and support the Net Zero transition.

Work and welfare reform

Mr Hunt set out steps to reward work, help make work pay, and reform welfare in recognition of the need to expand the workforce and get those out of work back into work to deliver growth. The OBR expect that the measures announced at Autumn Statement will support a further 78,000 people into work by 2028-29, on top of the 110,000 resulting from action taken at Spring Budget.

• From 1 April 2024, the National Living Wage will increase by 9.8% to £11.44 an hour for eligible workers. For the first time this will include 21- and 22-year-olds. This represents an increase of over £1,800 to the annual earnings of a full-time worker on the NLW and is expected to benefit over 2.7 million low paid workers.
• The government will also substantially increase the National Minimum Wage rates for young people and apprentices: for people aged 18-20 by 14.8% to £8.60 an hour, for 16-17 year olds and apprentices by 21.2% to £6.40 an hour.
• The government is reforming the Work Capability Assessment to ensure that people who can work are supported to do so via the welfare system. Changes to the activities and descriptors will better reflect the greater flexibility and reasonable adjustments now available in the world of work, preventing some individuals from being deemed not fit for work and ensuring they will be better supported into employment.
• The boosting of four key programmes – NHS Talking Therapies, Individual Placement and Support, Restart and Universal Support – will benefit up to 1.1 million people over the next five years.
• The government is exploring reforms of the fit note process to provide individuals whose health affects their ability to work with easy and rapid access to specialised work and health support.
• Mandatory work placements will boost skills and employability for those who have not found a job after 18 months of intensive support. Those who choose not to engage with the work search process for six months will have their claims closed and benefits stopped.

Infrastructure and levelling up

The Chancellor unveiled a raft of supply-side measures and funding packages to benefit businesses and local communities.

• £4.5 billion of funding for British manufacturers in the high-growth industries of the future, including £960 million earmarked for the Green Industries Growth Accelerator to support clean energy.
• The government has published its full response to the Winser review and Connections Action Plan, which will cut grid access times for larger projects by half, halve the time to build major grid upgrades and offer up to £10,000 off electricity bills over 10 years for those living closest to new transmission infrastructure.
• Three advanced manufacturing Investment Zones will be established in Greater Manchester, East Midlands, and West Midlands – together generating £3.4 billion of private investment and creating 65,000 high-quality jobs within the next decade.
• The Investment Zones programme and freeport tax reliefs will be extended from 5 years to 10 years, and a new £150 million Investment Opportunity Fund will support Investment Zones and Freeports to secure specific business investment opportunities.
• Four new devolution deals across England have been agreed. Mayoral deals with Greater Lincolnshire and Hull and East Yorkshire, and non-mayoral deals with Lancashire and Cornwall, will boost investment right across the country and deliver on the Prime Minister’s commitment to levelling-up.
• £500 million of funding over the next two years will help establish two more Compute innovation centres, supporting the development of artificial intelligence as a growth opportunity for Britain.
• The life sciences will also be supported as one of the Chancellor’s key-growth sectors, with £20 million to speed up the development of new dementia treatments coming as part of the government’s full response to the O’Shaughnessy Review of commercial clinical trials in the UK.
• To prioritise those who want to invest in the UK’s future, the government has accepted in principle the headline recommendations of Lord Harrington’s review into increasing foreign direct investment. This includes additional resource for the Office for Investment, allowing it to deepen its world-class concierge offer to strategically important investors.

Further information

• The Chancellor’s speech can be found later this afternoon here.
• Other documents published alongside the Autumn Statement today can be found here.
• The OBR’s Economic and Fiscal Outlook verifies that the two fiscal rules outlined by the Chancellor at last year’s Autumn Statement are met. Underlying debt falling as a percentage of GDP is met in the target year with £13 billion of headroom. The rule that public sector borrowing must be below 3% of GDP is met three years early.