Autumn Budget 2023: 5 points to note for nail & beauty pros

Chancellor of the Exchequer, Jeremy Hunt, presented the Autumn Budget Statement to parliament today, 22 November, and declared Britain’s economy as ‘back on track’.

With goals to reward hard work, here’s a summary of the measures worth noting for employees and self-employed workers:

1. National Insurance contributions cut by 2%.

In a somewhat surprising yet welcome announcement, the chancellor announced a cut to national insurance from January 2024, which will benefit 27 million workers.

Workers that currently earn up to £50,200 pay 12% in national insurance, so this amount will be slashed to 10%. It means that somebody on a £35,000 salary will save over £450 a year. Its goal is to reward workers.

2. Rise in the National Living Wage.

The minimum wage will rise from £10.42 to £11.44 per hour from April for those aged 21 years old and above. The minimum wage for those aged 18 to 20 will rise by £1.11 to £8.60 per hour.

This means that a full-time employee aged 23 on the National Living Wage will receive an £1,800 rise over 12 months.

3. State pension to rise by 8.5%.

From April, the new state pension will rise by 8.5%: from £203.85 per week to £221.20 per week (£11,502.40 per year).

4. Tax break for business investment extended.

The chancellor has extended the temporary tax break that allows businesses to offset any investments. Worth £11bn a year, this break allows firms to pay less corporation tax and was set to expire in 2026, but will now be in place permanently.

5. Business rates relief extended.

Mr. Hunt extended a 75% discount on business rates for qualifying small businesses in the retail, hospitality and leisure sectors, that have struggled to bounce back after the pandemic.

These businesses could include:

• shop
• restaurant, café, bar or pub
• cinema or music venue
• hospitality or leisure business – for example, a gym, a spa or a hotel

To see if your business is eligible for this relief, contact your local council.

For self-employed workers, the chancellor has abolished class 2 national insurance contributions and reduced the class 4 NI contributions from 9% to 8%.

Commenting on the Autumn Statement, Caroline Larissey, chief executive of the National Hair & Beauty Federation (NHBF) says:

“We’re delighted that the Chancellor has responded to our calls for a continuation of the 75% retail business rates discount. Along with cuts to national insurance, this will give very welcome relief to businesses struggling to cover overheads. Sector recovery has been slow and steady since the spring, and many businesses are still battling to clear Covid debts.

“With £50m allocated to apprenticeships in key growth sectors, we look forward to hearing more about how the hair and beauty sector will be supported. Employer incentives to support education and training particularly apprenticeships are desperately needed to ensure the future talent pipeline to our vibrant, creative and innovative sector. Given rising wage costs in the spring, sector employers, mostly small and micro businesses, won’t be rushing to take on new staff without additional support.”

For more information, visit gov.uk