Main Takeaways from the 2023 UK Autumn Statement

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Main national insurance rate to be cut by 2%, from 12% to 10% for 27 million peopleFull expensing of capital investment for businesses made permanent. Business investment to improve by £20bn per year according to estimatesState pensions to rise by 8.5% from April 2024Welfare benefits grow in line with the September’s CPI figure of 6.7% instead of the rumoured, lower October figure Recommended by Richard Snow Introduction to Forex News Trading Tax Cuts, Debt Reduction and Massive Boost to UK BusinessesLast autumn, Chancellor Jeremy Hunt was brought in as damage limitation, now he has a tiny bit of wriggle room in his budget and has his sights set on growth. Now that inflation has been halved and stimulus/support packages have been phased out, the government has a minimal amount of headroom within the budget which many were anticipating would be utilized to ease the burden of taxes. They were right, well kind of.The tax cuts weren’t applied to income tax but rather to the percentage of national income tax that will be applicable to 27 million people in the UK. This has now created an expectation that the prime minister’s calls for a drop in the basic tax rate will be the main event of the pre-general election budget in the spring.Furthermore, businesses will be able to fully expense investment expenditure permanently.

Immediate Market ReactionThe statement saw little movement across UK assets as can be seen below via cable and FTSE 5-minute charts.GBP/USD, FTSE 5-minute chartSource: TradingView, prepared by Richard SnowSterling received a tiny boost yesterday as policy setters at the Bank of England (BoE) continued to warn about the upside risks to inflation and issued a warning over reading too much into recent inflation prints. This has buoyed cable despite the dollar also receiving a small boost after the rather hawkish but outdated FOMC minutes last night.GBP/USD Daily ChartSource: TradingView, prepared by Richard Snow Recommended by Richard Snow How to Trade GBP/USD — Written by Richard Snow for DailyFX.comContact and follow Richard on Twitter: @RichardSnowFX !function(){function errMsg(errCode,msg){return(msg||””)+” (SystemJS Error#”+errCode+” https://github.com/systemjs/systemjs/blob/main/docs/errors.md#”+errCode+”)”}var baseUrl,baseEl,hasSymbol=”undefined”!=typeof Symbol,hasSelf=”undefined”!=typeof self,hasDocument=”undefined”!=typeof document,envGlobal=hasSelf?self:global,backslashRegEx=(!hasDocument||(baseEl=document.querySelector(“base[href]”))&&(baseUrl=baseEl.href),baseUrl||”undefined”==typeof location||-1!==(baseEl=(baseUrl=location.href.split(“#”)[0].split(“?”)[0]).lastIndexOf(“/”))&&(baseUrl=baseUrl.slice(0,baseEl+1)),/\\/g);function resolveIfNotPlainOrUrl(relUrl,parentUrl){if(“/”===(relUrl=-1!==relUrl.indexOf(“\\”)?relUrl.replace(backslashRegEx,”/”):relUrl)[0]&&”/”===relUrl[1])return parentUrl.slice(0,parentUrl.indexOf(“:”)+1)+relUrl;if(“.”===relUrl[0]&&(“/”===relUrl[1]||”.”===relUrl[1]&&(“/”===relUrl[2]||2===relUrl.length&&(relUrl+=”/”))||1===relUrl.length&&(relUrl+=”/”))||”/”===relUrl[0]){var parentProtocol=parentUrl.slice(0,parentUrl.indexOf(“:”)+1),pathname=”/”===parentUrl[parentProtocol.length+1]?”file:”!==parentProtocol?(pathname=parentUrl.slice(parentProtocol.length+2)).slice(pathname.indexOf(“/”)+1):parentUrl.slice(8):parentUrl.slice(parentProtocol.length+(“/”===parentUrl[parentProtocol.length]));if(“/”===relUrl[0])return parentUrl.slice(0,parentUrl.length-pathname.length-1)+relUrl;for(var segmented

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