PwC Scotland comments on the UK Government’s Autumn Budget

Sharon Blain, Tax Director at PwC Scotland, said:

“In what is likely to be the penultimate major fiscal announcement before the next election, the Chancellor delivered a relatively considered and measured statement.

“There was a balance between short term ‘cash’ for the individual, with National Insurance changes being accelerated to early January 2024, versus long term gain; but more notable by their absence were some of the measures on capital taxes and stamp duty speculated upon in the run up. Perhaps the Chancellor is keeping powder dry for the Spring, with an eye on the proximity of the next general election.

“Measures impacting Scotland directly were few and far between, save the announcement of an £80 million extension to the Levelling Up Programme to benefit Na h-Eileanan an Iar, Dundee,  Argyll and Bute, and the Scottish Borders.

“The move to make full expensing a permanent fixture will be welcome, as will investment commitments to innovation sectors, including life sciences and renewables. Reducing the cost of capital for qualifying plant and machinery plays well for Scotland’s wider industrial and manufacturing sector and tax certainty is always a benefit when businesses are considering long term investment plans. 

“Some of Scotland’s key businesses in the hospitality sector will be happy to hear about the continued freeze in alcohol duty but, with the changes in business rates having no direct impact north of the border, it will be interesting to see how increases in the National Living Wage will be received by the sector, as well as retail and tourism. It remains to be seen how this will be addressed in the Scottish Government’s upcoming budget in December.”