Press release
17 November 2022
“The UK was already facing its highest tax burden since WW2 and the extra £24bn announced today increases that even further.
Energy taxes
“While there were positive surprises for some, like the £14bn cut in business rates, others saw increases: The oil and gas sector now faces a 75% headline corporate tax rate while energy generators will pay tax at 70%. Companies in this market will be acutely aware that the windfall tax has been extended by over two years, calling into question whether this is indicative of a longer-term high tax environment for those in the energy sector.
Fiscal drag “This statement used inflation in its favour, freezing thresholds and cutting allowances to bring more people into the tax net, and existing taxpayers will now pay higher rates. The new threshold freezes announced today will raise £26bn by 2027/28, of which £25bn is employer national insurance, representing a surprising and significant extra tax burden for employers.
Limited tax measures around growth
“Although one of the priorities today was growth, there were few growth measures announced, even for R&D, which was an area where we expected to see generous incentives. The enhanced tax deduction for SMEs will actually be reduced. There was better news for larger companies who will see the value of R&D Expenditure Credit (RDEC) increasing from 13% to 20%. This means a large company with £1 million of qualifying expenditure after April 2023 will receive a tax credit of £150,000, compared to £105,300 today. Overall, though, the value of R&D reliefs are being reduced by £1.3 billion per year by 2027/28.
“This was a statement made up of 18 separate tax measures each raising over £100m by 2027/28, with most taking effect after the next election. There are still gaps for the government to fill in stimulating investment to achieve growth and its net zero ambitions.”
@DeloitteUK for live comment
Deloitte spokespeople
Deloitte has a range of spokespeople available to comment on today’s Autumn Statement. They can be reached on 020 7007 3333 or 0207 303 5054 or one of the following numbers:
• Debapratim De - senior economist (07884 765916)
• Amanda Tickel - head of tax policy (07920 270 964)
• Rachel McEleney - personal tax (07826 891 752)
• Alison Lobb - corporate tax (07768 178264)
• James Warwick - employment tax (07855 399368/07436055437)
• Gareth Pritchard - indirect tax (07824895798)
• Gerry Biddle - business rates (07855 399 368)
About Deloitte
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Deloitte LLP is a subsidiary of Deloitte NSE LLP, which is a member firm of DTTL, and is among the UK's leading professional services firms.
The information contained in this press release is correct at the time of going to press.
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