What Does the 2023 Autumn Statement Mean for Struggling Company Directors?

Company insolvencies are now at their highest level since 2009, with small-to-medium-sized enterprises the most at risk. 6028 insolvencies were recorded in the third quarter of 2023 alone.

Many struggling directors are undoubtedly keen to learn how this year’s Autumn Statement may help their businesses.

In this article, we’ll cover all of the relevant announcements and consider how they will affect business owners going forward.

Wage Increases

There will be a 9.8% increase to the National Living Wage, rising from £10.42 to £11.44 an hour.

21-year-olds will now be included in the National Living Wage; previously, workers must have been at least 23 years old.

Other wages are set to rise, too. The minimum wage for 18-20-year-olds will rise from £7.49 to £8.60, while the minimum wage for those under 18 will rise from £5.28 to £6.40. The apprenticeship minimum wage will also rise from £5.28 to £6.40.

This announcement will naturally concern directors already struggling to keep up with rising overheads. The changes will come into effect in April 2024.

Business Rates

Business rate relief – which applies to companies in the hospitality, leisure, and retail sectors – will continue for another year, allowing directors a 75% discount on business rates worth up to £110,000.

The small business rate multiplier, applicable to companies with property valued below £15,000, will continue to be frozen for an additional year.

However, standard business rates are set to rise by 6.7% in April 2024, thanks to consumer price inflation. This will apply to businesses with property valued at £51,000 or more.

Unfortunately, this isn’t overly promising for directors who are already struggling; aside from the continuation of existing support, no new aid measures have been announced.

Alcohol Duty Frozen

A freeze on alcohol duty has been announced, stopping increases until August 2024. It applies to beer, cider, wine, and spirits.

This should hopefully help to keep prices down and encourage consumer spending, helping hospitality businesses to maintain their revenue.

Key Takeaways for Directors

While the Autumn Statement is welcome news for workers, it doesn’t offer much hope to the directors of struggling small-to-medium-sized companies.

Due consideration has been shown to at-risk industries such as hospitality and retail, but any support is essentially a continuation of previous measures. As a result, businesses who are already having a hard time shouldn’t expect to feel too much relief – particularly when imminent wage rises are taken into account.

If you’re worried about your business’s finances, you can talk to our team for free, confidential advice. We have a range of insolvency solutions available, which can seek to either safely shut down the business, or achieve a successful turnaround.