2023: Autumn update

Improving conditions

After a prolonged period of uncertainty this period of economic stability is easing pressure on margins, and encouraging more businesses to consider potential growth and, in some cases, exit strategies. Similarly, from a funding perspective, we’re seeing an increasing number of banks and institutional lenders beginning to return to the table following an understandable period of adjustment driven by the recent debt crisis on the back of the mini-budget of only 12 months ago, which set the UK economy reeling into 2023.

Vendors and investors alike will be banking on this stability continuing into the new year and will have kept a close eye on the Chancellor’s Autumn Statement, which took place just last week.

This year’s Autumn Statement largely sought to instil confidence amongst businesses and consumers, while setting the scene for a potential general election next year. Notable announcements for businesses include an extension to 75% business rates relief for retail, hospitality and leisure firms, a £4.5 billion funding package for UK manufacturers and the permanent implementation to ‘full expensing’ on capital investments in new machinery and equipment.

A minority of businesses will have one eye on the implications that a potential change in government would have for them. This includes those in the private education sector, where a prospective Labour government is likely to increase VAT to 20% on school fees, but appears less likely to make increases in capital gains tax following recent comments by the Shadow Chancellor.

In the context of recent economic pressures a changing of the guard is considered unlikely to have a major impact on operating conditions, with any government likely to want to prioritise continuity and stability to support further economic recovery.