Chancellor Jeremy Hunt set out his economic vision for the country
Tax cuts for working people and British business headlined
Chancellor Jeremy Hunt’s ‘Autumn Statement for Growth’.
The government says, 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.
On rail the Autumn Statement said: “The government is also continuing to progress its commitment to deliver East West Rail, with a statutory consultation due next year and, as part of Network North, has committed to providing £2.5 billion for a West Yorkshire mass transit system.”
Commenting on the Autumn Statement, Darren Caplan, Chief Executive of the Railway Industry Association, said: “It is positive that the Government has restated its commitment for East West Rail and indicated support for West Yorkshire Tram. Given Chancellor Jeremy Hunt was an advocate for the full HS2 scheme, now that Phase 2 has been summarily cancelled by the Government – damaging railway suppliers’ confidence – we and rail suppliers want to see tangible progress in delivery on any schemes it takes forward.
“However, this Autumn Statement was clearly a missed opportunity to confirm wider funding for rail, whether from the plethora of schemes in the new ‘Network North’ proposals, the Rail Network Enhancements Pipeline, the Integrated Rail Plan for the North & Midlands, or a rolling stock pipeline. Given we were told the funding for HS2 Phase 2 was to be reallocated to other more immediate transport schemes – and with a General Election likely to be less than a year away – it would be good to now hear the Government’s plans to push on with delivery of the rail work in its various plans.
“This ongoing uncertainty across rail investment is genuinely harming UK suppliers, who are halting recruitment, looking overseas for work – meaning skills are being lost – and seeing jobs and factories jeopardised. So we strongly urge the Government to fund and push on with a clear and visible pipeline of work, whether related to infrastructure or rolling stock, which not only means an enhanced railway in the future but also better value for money for the taxpayer.”
Responding to the Autumn Statement, Ben Curtis from Campaign for Better Transport said: “We are disappointed that the Chancellor did not include any transport measures in his Autumn Statement today, despite a focus on lifting people out of poverty. We know that a lack of access to affordable public transport contributes to financial inequality, unemployment and social isolation, so transport should be at the heart of Government investment priorities.”
Autumn Statement at a glance
- 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%.
- Triple lock maintained for pensioners, benefits to rise in line with inflation and Local Housing Allowance increased.
- 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.
- Autumn Statement gets the economy growing, debt falling and helps return inflation to its 2% target.
Suneeta Johal, CEO of the Construction Equipment Association (CEA) said: “The recent Autumn Statement by Chancellor Jeremy Hunt represents a thoughtful and strategic approach, acknowledging the necessities of the industry and introducing a forward-looking strategy to enhance investment. This statement marks a positive development, especially for the manufacturing sector, which values the emphasis on resolving enduring economic issues. The decision to make full expensing permanent provides the clarity and stability businesses require for their investment decisions.
“Additionally, the new initiatives to improve engineering apprenticeships and advance manufacturing signify a proactive effort to develop high-value growth and skilled employment, shaping a robust future economy.
“The Chancellor’s commitment to making the full expensing policy a permanent fixture is a landmark achievement. The ability for companies to claim 100% capital allowances on qualifying plant and machinery investments, and write off the cost of investment in one go is not just a financial boon; it’s a catalyst for accelerated growth and modernisation.
“This significant policy change, a result of concerted efforts by MAKE UK, CBI and the Construction Equipment Association alongside over 200 organisations, stands as an example of the powerful outcomes that can be achieved through collaborative industry-government engagement.
“However, the absence of discussion on fuel duty is particularly disappointing. In an industry where fuel costs substantially impact operations, this oversight is a missed opportunity.”
Richard Robinson, AtkinsRéalis CEO – UK & Ireland, said: “Today’s Autumn Statement included some welcome developments on planning and opportunities for regional rebalancing, but a continued lack of clarity around future infrastructure projects continues to create uncertainty across the supply chain as we wait for the urgently required publication of an updated National Infrastructure and Construction Pipeline.
“The government has rightly recognised that productivity gains are essential to drive growth and help deliver greater investment. The planning reforms announced today have the potential to significantly boost productivity, but there is more still that could be done to speed up infrastructure delivery and realise greater economic and societal gains:
“It’s an area the construction sector has much to contribute towards: recent Construction Leadership Council research identified up to £45bn of additional value each year that could be delivered through creating a more productive environment across the sector, from house building to critical national infrastructure delivery, from greater early-stage collaboration on projects to on-site efficiencies and streamlining processes beyond planning.
“However, we welcome the commitment to tackle the ongoing delays around planning and connection of grid infrastructure, which will make a significant impact in an area that is vital in delivering the net zero energy transition and bringing new energy generation online.”
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