Autumn Statement 2023

The Autumn Statement 2023 provides an overview of the UK government’s economic priorities and fiscal policies. The Prime Minister’s goals include halving inflation, growing the economy, and reducing debt. Inflation has decreased, the economy has recovered faster than expected, and debt is projected to fall as a percentage of GDP. The government aims to focus on reducing debt, cutting taxes, supporting businesses, promoting sustainable energy, and enhancing education.
The statement outlines measures to boost business investment, increase employment, and strengthen the economy’s potential output. The government plans to reduce debt and borrowing, meeting fiscal rules with greater headroom. Pension reforms are introduced to drive investment and consolidation in the pension market. The government aims to unlock investment through reforms in the financial system and support the growth of the financial services sector.
Investments in science, innovation, and technology are highlighted, including support for R&D, quantum computing, and the space sector. The government is committed to fostering a dynamic and innovative investment economy, supporting SMEs, and simplifying taxes for the self-employed. Measures to enhance energy security and achieve net-zero goals include reforms to the UK Emissions Trading Scheme and support for industrial energy transformation.
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From the financial markets perspective, points 4.31 – 4.47 are relevant and the following measures are expected (summarised):
– improvement in the pension market and investments, including a dedicated budget to promote shifts to investment in „UK science and technology companies“
– insurance regulation review (Solvency II) to make compliance easier and more adaptable
– continue promoting the UK as the world’s financial capital, including supporting technological improvements such as distributed ledger technology.