The NAJ Responds to the Autumn Statement

23 Nov 2023

The National Association of Jewellers Chief Executive Officer, Ben Massey, offers tempered optimism following yesterday's Autumn Statement.

There are positive signs following Chancellor Jeremy Hunt's speech in the House of Commons, particularly with tax reductions and breaks designed to stimulate the economy and encourage business investment.

The decision to move the temporary capital investment tax break to permanent is welcome. The break allows businesses to deduct the total cost of investing in machinery, IT and equipment from their corporation tax, in large parts to offset the rise in corporation tax announced in Spring from 19 to 25 per cent.

Extending the 75% discount on business rates up to £110,000 for retail, hospitality and leisure businesses for another year is positive news for many smaller businesses in NAJ membership. However, with our partners, we will continue to lobby for business rate reform for greater equity in modern omnichannel retail. 

In more positive news, we welcome the commitment to consider the evidence for VAT-free shopping but are disappointed that this wasn't included in the raft of initiatives announced. As an association, we will continue to make representations with other associations and bodies on this issue to demonstrate the positive impact such a scheme has on the UK economy versus others in Europe.

Last Friday, we also learned of the £4.5 Billion funding investment for British Manufacturing and were frustrated that consumer goods were not among the eight chosen sectors. However, we acknowledge that the government will expand the Made Smarter programme to all English Regions in 2025-26 before working with devolved administrations from 2026-27. 

And finally, persistent inflation and rising minimum wage levels put increased cost pressure on manufacturers and retailers alike, with consumers pushing for lower prices. For long-term investment and prosperity, a fair and sustainable profit margin needs to exist. Taking into account healthy competition, these current opposite tensions need to be reconciled as soon as possible, so government action to this end is needed urgently.

View full Autumn Statement

Source: National Association of Jewellers