SMF responds to Autumn Statement 2023 – The Social Market Foundation
On the Chancellors tax measures, Sam Robinson, SMF Senior Researcher said: Todays cuts to National Insurance rates barely touch the sides of the tax increase from frozen thresholds, meaning they arent really a cut at all for many households. But these changes do represent a welcome rebalancing of personal taxes, shifting away from national insurance towards income tax, which covers a broader range of earnings including pensions and rental income.
Out of all the Autumn Statements measures, full expensing has by far the biggest potential to stimulate economic growth. But given the big price tag associated with the tax cut, and OBR projections that business investment will decrease as a share of GDP, it is vital that full expensing is rigorously monitored to ensure it is as effective in the real world as it looks on paper.
From a fiscal point of view, the tax cuts announced today are built on sand. Most of the headroom the Chancellor used to deliver them was based on departmental spending projections that seem implausibly low and that few people think can be met. To deliver good news today, Hunt may be kicking the bad news down the road.
On the neglect of skills and education, Dani Payne, SMF Senior Researcher, said:
Given the Chancellors ambition to build a world-class education and skills system, it is disappointing to see core school spending per pupil being held flat in real terms, and little else announced to support our young people.
The announcement of modest additional funding for apprenticeships is welcome, however it is unlikely that what the sector really needs is a new pilot scheme, as opposed to a whole-sale reform to bring together our post-secondary education systems, encourage growth in technical education and tackle the unproductive competition between HE and FE that leaves both sectors fighting for pupils and funding.
If the government is to truly grow the supply side of the economy, human capital and skills must be at the forefront of our plan for growth and schools, addressing funding and staffing crises to deliver the next generation of skilled young workers and help those already in work to upskill and retrain.
On measures for long-term unemployment, Jamie Gollings, SMF Deputy Research Director said:
The Chancellors 2.5bn for the long term unemployed, equivalent to roughly 1,500 a head per year, comes with the threat of mandatory work placements and benefits being removed if claimants dont engage. That will send a shiver down the spine of those off work with mental health issues and disabilities, causing them anxiety that could set people back in their recoveries and push them even further from the job market.
Most of those off work with mental health issues and disabilities want to get back into work, and the investment in such programmes is welcome. Working with employers to build forms of employment that can work around peoples conditions, from remote working to stress-freelancing, would help to create those routes. Better to do so with a supportive atmosphere that fosters rather than stifles recovery.
On support for business growth, John Asthana Gibson, SMF researcher said:
The Chancellor taking forward the Mansion House reforms is a positive outcome from todays Autumn Statement. Measures that put more cash from pensions funds deep pockets into growth hungry scale-ups should be encouraged, and the Governments intention to channel greater institutional investment through the British Business Bank, something the SMF has called for, should receive particular praise.
However, high growth business not only need to be well-financed, but well-staffed with talented and capable workers to succeed. A lack of human capital, not the financial sort, is the greatest barrier holding back companies in Britain today, and the Chancellors lack of ambition to develop the UKs skills base with significant investments in education and training will weaken the effectiveness of these measures.
On planning reforms, Gideon Salutin (SMF researcher) and Jamie Gollings (SMF deputy research director) said:
A permitted development right to convert single family homes into duplexes is a good idea on paper. Yet such measures have been tried in a number of cities, including Brisbane, Chicago, New York, and Toronto, without increasing actual housing supply because they were not combined with appropriate targets and strict regulations.
If the government really wants to increase housing supply, it will need to undertake more ambitious planning reform to fast-track large housing projects that maximise the number of units permitted on a lot, and twin this with tight affordability rules to ensure that new capacity genuinely drives down costs.
Other housing measures in the statement are similarly welcome, but not enough to address the crisis. 450m to the local authority housing fund to deliver 2,400 new homes is a drop in the ocean compared to the scale of social housing waiting lists, while faster processing times may speed approvals but fail to greatly increase stock.
On green investments, Gideon Salutin, SMF researcher said:
The Chancellors announcement of 4.5 billion through 2030 is a welcome move in the right direction, but is too small. By comparison, the US is pouring over 300 billion into green manufacturing, Japan is offering 120 billion in long term bonds.
Our research benchmarking global green investment shows that the UK would need to immediately budget at least 54 billion over the next ten years over 12 times the current offer to match peer countries. The Chancellor has taken a first step by acknowledging the problem, but until he makes larger commitments, the UK will remain a step behind.
On investment zones, Gideon Salutin said, SMF researcher said:
Todays announcement increased the number of investment zones and the length of time they receive subsidies, but failed to increase the money annually being transferred to local authorities. At present, investment zones receive just 16 million annually, increasing average local budgets by just 7.4% according to our research.
Local authorities outside London want to attract more investment, but to do so they need more startup cash. The 16 million cap is too small, and should be boosted by creating a larger funding stream for local authorities or by giving them new financial powers. Extending the program may help reassure private investors, but the major transformations the chancellor is promising cannot be achieved without deeper reform.
On public sector productivity, Niamh O Regan, SMF researcher said:
The UKs public sector productivity has been poor for over two decades, growing just 4% between 1997 and 2018, and so planning to grow this by 0.5% a year, while welcome, is very ambitious. There also appears to be a stark contrast between the Governments plan for boosting productivity in private and public sector.
The Chancellor said that productivity in other countries is higher due to investment, but this diagnosis seems to be limited to the private sector. The Government plans to improve public sector productivity, largely through adopting new technology, to cut bureaucracy and resolve administrative tasks faster for both the police and the NHS. Technology can help, but doing it well will require up-front investment in time and resources. Trying to do it on the cheap is bound to fail.
On support for small businesses, Richard Hyde, SMF Senior Researcher said:
A big impediment to smaller firms investing for growth is cashflow. Without adequate resources at hand investment in capital and workers by entrepreneurs in their small business has to be put off, again and again.
One of the most common and significant constraints on SME cashflow is late payment by customers. It has been estimated that half of invoices issued by SMEs are paid late. The problem has been worsening, with more than 23 billion outstanding and owed to small firms according to the Government in 2022. Research has suggested that as many as 50,000 firms could be going out of business each year because of the culture of poor payment practices in the UK.
The government wants an investment boom in the UK. To achieve that, it is imperative that small firms do not suffer from unnecessary cashflow problems. That is why the announcement in the Autumn statement to use public sector procurement to put obligations on contractors to pay their suppliers on time is welcome. However, it should only be seen as a start. Many businesses in the private sector are late payers too, and these will be unaffected by these measures. A more ambitious agenda is needed.
On the pensions pot-for-life, Aveek Bhattacharya, SMF Interim Director said:
Moving from an employer-led pension system to one where each individual has their own pot for life could help avoid the clutter and inconvenience that many of us have experienced from accumulating multiple often small pots from different jobs. More fundamentally, it could shift the onus for pension savings from bosses to workers, which has the potential to boost engagement, personalisation and value for money.
A forthcoming paper from the Social Market Foundation will explore these issues, and we look forward to informing the consultation announced today.
Contact
Read more:
SMF responds to Autumn Statement 2023 - The Social Market Foundation
- New AI tools for mental health research and treatment - Google Blog - July 8th, 2025 [July 8th, 2025]
- AI, Irreality and the Liberal Educational Project (opinion) - Inside Higher Ed - July 8th, 2025 [July 8th, 2025]
- AI is changing our world. At what point will it change our reality? | Opinion - USA Today - July 8th, 2025 [July 8th, 2025]
- Sam Altmans AI Empire Relies on Brutal Labor Exploitation - Jacobin - July 8th, 2025 [July 8th, 2025]
- Protecting U.S. Tech: China Committee and Bipartisan, Bicameral Leaders Unite to Stop CCP AI Chip Smuggling - Select Committee on the CCP | (.gov) - July 8th, 2025 [July 8th, 2025]
- The worst thing about AI? That stupid Samsung ad where the guy adds way too much sugar to his pasta sauce - The Guardian - July 8th, 2025 [July 8th, 2025]
- She Wanted to Save the World From A.I. Then the Killings Started. - The New York Times - July 8th, 2025 [July 8th, 2025]
- BRICS leaders to call for data protections against unauthorized AI use - Reuters - July 8th, 2025 [July 8th, 2025]
- Opinion | Are We Really Willing to Become Dumber? - The New York Times - July 8th, 2025 [July 8th, 2025]
- The Coder Village at the Heart of Chinas A.I. Frenzy - The New York Times - July 8th, 2025 [July 8th, 2025]
- How agencies are pricing AIand what it means for industry compensation - Ad Age - July 8th, 2025 [July 8th, 2025]
- Ukrainian Troops Struggle to Hold the Line on the Eastern Front - The New York Times - July 8th, 2025 [July 8th, 2025]
- Russian Offensive Campaign Assessment, July 7, 2025 - Institute for the Study of War - July 8th, 2025 [July 8th, 2025]
- Ukraines Drone Revolution: And What America Should Learn From It - Foreign Affairs - July 8th, 2025 [July 8th, 2025]
- Russia welcomes Trumps cut to Ukraines military aid but it could be deadly for Kyiv - CNN - July 8th, 2025 [July 8th, 2025]
- Russias Child Soldiers: How the Kremlin Trains Ukrainian Kids and Sends Them to the Frontlines - UNITED24 Media - July 8th, 2025 [July 8th, 2025]
- Farmers turned soldiers, fields full of mines and a rural exodus: how Russia is punishing Ukraines countryside - The Guardian - July 8th, 2025 [July 8th, 2025]
- Zelenskyy says coalition of the willing should meet in a few days, after call with Starmer as it happened - The Guardian - July 8th, 2025 [July 8th, 2025]
- YouTube Enables Creators to Share More Data with Brands to Secure Partnership Opportunities - Social Media Today - July 8th, 2025 [July 8th, 2025]
- How Brands Are Taking Back Social Media From Influencers - The New York Times - July 8th, 2025 [July 8th, 2025]
- Explained: Why Greenwashing is the newest social media marketing red flag - Storyboard18 - July 8th, 2025 [July 8th, 2025]
- KFC appoints We Are Social as social agency of record - Marketing-Interactive - July 8th, 2025 [July 8th, 2025]
- Behind Amtraks social-first marketingthe viral Train-tacular post and whats next - Ad Age - July 6th, 2025 [July 6th, 2025]
- Olipops UGC Strategy: 5 Drops and Hotel Experiences That Drove Social Buzz - Influencer Marketing Hub - July 4th, 2025 [July 4th, 2025]
- Im a social media scientist with 3.5 million followers. Heres what Ive learned about public health communication - STAT - July 4th, 2025 [July 4th, 2025]
- Currys CEO: New generation of customers discovering the brand thanks to social strategy - Marketing Week - July 4th, 2025 [July 4th, 2025]
- TikTok Provides an Overview of Its New Brand Consideration Ads [Infographic] - Social Media Today - July 4th, 2025 [July 4th, 2025]
- Outdated AI Drains Marketing Budgets and Wastes Team Time - MarTech Cube - July 2nd, 2025 [July 2nd, 2025]
- Championing Growth and Enabling Teams to Thrive: Social Elements CEOs Approach to Leadership - Little Black Book | LBBOnline - July 2nd, 2025 [July 2nd, 2025]
- TikTok Launches Bulletin Boards for Broadcast Messaging From Creator and Brand Profiles - Social Media Today - July 2nd, 2025 [July 2nd, 2025]
- Ayrshire mentor named Social Media Marketing Specialist of the Year - The Scotsman - July 2nd, 2025 [July 2nd, 2025]
- The harms of social media are largely blamed on individuals instead of tech companies - USC Annenberg - June 29th, 2025 [June 29th, 2025]
- Instacart Gains Momentum With AI and Social Media Partnerships, Says Citizens JMP - Yahoo Finance - June 29th, 2025 [June 29th, 2025]
- Tunisian girl set to be repatriated after social media love marriage ends in divorce - Geo.tv - June 29th, 2025 [June 29th, 2025]
- Snapchat Shares Trend Insights for Marketers to Tap Into This Summer [Infographic] - Social Media Today - June 28th, 2025 [June 28th, 2025]
- The next performance marketing frontier: beyond search and social - Campaign - June 28th, 2025 [June 28th, 2025]
- 24Social Expands Southeast Asia Reach with Over 8 Years of Proven Social Media Expertise - Yahoo Finance - June 28th, 2025 [June 28th, 2025]
- How cheap SMM panels are revolutionizing social media marketing for small businesses - London Daily News - June 24th, 2025 [June 24th, 2025]
- Risks and Rewards: A Guide to Understanding Social Media Influencer Income for Valuation Professionals - CBIZ - June 22nd, 2025 [June 22nd, 2025]
- Technology to enforce teen social media ban is effective, trial says. But this is at odds with other evidence - The Conversation - June 22nd, 2025 [June 22nd, 2025]
- Own, a new social media app, aims to tokenize the creator economy - TechCrunch - June 20th, 2025 [June 20th, 2025]
- I've Worked With 1,000 Brands 11 Social Media Secrets Every Business Should Be Using in 2025 - Entrepreneur - June 20th, 2025 [June 20th, 2025]
- Meta to Start Including Ads in WhatsApp - Adweek - June 20th, 2025 [June 20th, 2025]
- Gambling and social media abuse of athletes - what is going on? - BBC - June 20th, 2025 [June 20th, 2025]
- YouTube Updates Shopping Buttons for Shorts, Expands Access to Communities - Social Media Today - June 20th, 2025 [June 20th, 2025]
- Reddit Announces New Conversation Research Tools and Updated Ad Options - Social Media Today - June 20th, 2025 [June 20th, 2025]
- Dove Wins Cannes Lions Media Grand Prix for Championing 'Real Beauty' in the Age of AI - Adweek - June 20th, 2025 [June 20th, 2025]
- TikTok Launches New AI-Powered Ad Creation Tools, Integrations With Adobe and WPP - Social Media Today - June 20th, 2025 [June 20th, 2025]
- Creator content outperforms industry norms for brand impact, study finds - Marketing Week - June 20th, 2025 [June 20th, 2025]
- How P.F. Changs turned a 5-second video into a viral brand moment - Marketing Brew - June 20th, 2025 [June 20th, 2025]
- Cupcake Giant Baked by Melissa on Supercharging DTC Sales and Social Media Reach to Drive Business - U.S. Chamber of Commerce - June 10th, 2025 [June 10th, 2025]
- What to watch for during ESPNs UFC 316 coverage the Marketing & Social edition - ESPN Front Row - June 10th, 2025 [June 10th, 2025]
- Top Crypto Picks as Normalcy Returns Following the Trump and Musk Social Media War - Crypto Daily - June 10th, 2025 [June 10th, 2025]
- Meet Marketings Most Dynamic Duo: Connected TV and Social - Adweek - June 7th, 2025 [June 7th, 2025]
- Heineken uses hard numbers to foster better representation in social media ads - Digiday - June 7th, 2025 [June 7th, 2025]
- Orange 142 Releases Social Media Marketing Best Practices For Brands to Drive Stronger Social Media Campaigns and ROI - PR Newswire - June 7th, 2025 [June 7th, 2025]
- Snapchat Shares Notes on the Effectiveness of Skippable Versus Non-Skippable Ads - Social Media Today - June 7th, 2025 [June 7th, 2025]
- The Top 5 Social Media Automation Tools to Save Time and Boost Engagement in 2025 - DesignRush - June 7th, 2025 [June 7th, 2025]
- TikTok Shares a Range of Ad Updates at Its World Event - Social Media Today - June 7th, 2025 [June 7th, 2025]
- Get More from Your Social Strategy with YouTube - Adweek - June 7th, 2025 [June 7th, 2025]
- LinkedIn Adds More Video Ad Options, Including First Impression Ads - Social Media Today - June 7th, 2025 [June 7th, 2025]
- Instagram Announces Latest Updates for Edits App, Including More Transition Effects - Social Media Today - June 7th, 2025 [June 7th, 2025]
- Metas Reportedly Planning to Enable Fully Automated Ad Campaigns by Next Year - Social Media Today - June 7th, 2025 [June 7th, 2025]
- Viral Nation is known for being one of the biggest digital talent agencies in the world. But it does a lot more than representation. - Tubefilter - June 7th, 2025 [June 7th, 2025]
- Musks ingratitude tweet might be the most costly social media post of all time - Sherwood News - June 7th, 2025 [June 7th, 2025]
- Social medias push for the perfect muscular body is fuelling a new form of disordered eating and young men are most at risk - The Conversation - June 7th, 2025 [June 7th, 2025]
- Social Advertising Social Media Market Size Trends and Forecast by Application, Type, and Geography - openPR.com - June 4th, 2025 [June 4th, 2025]
- RXBar scrubs corporate jargon from social feeds in battle against B.S. - Marketing Dive - June 4th, 2025 [June 4th, 2025]
- Junk food ads are flooding your teenager's social media feeds and it's influencing what they choose to eat - RNZ - June 4th, 2025 [June 4th, 2025]
- What it takes to win in social: Be a pinball wizard, storyteller, experimenter - webintravel.com - May 28th, 2025 [May 28th, 2025]
- Bungie's Marathon fans convinced game will be cancelled after paid marketing reportedly pulled - Indy100 - May 28th, 2025 [May 28th, 2025]
- A social marketing guru shares the keys to successful campaigns - Fast Company - May 24th, 2025 [May 24th, 2025]
- SMBs rely heavily on social media for marketing and growth, study says - Marketing Dive - May 24th, 2025 [May 24th, 2025]
- Brands could start shunning AI for social media marketing and advertising, instead using their feeds to show off 'proof of reality,' consultant says -... - May 24th, 2025 [May 24th, 2025]
- Reddit Expands Dynamic Ads to All Advertisers - Social Media Today - May 24th, 2025 [May 24th, 2025]
- Junk food ads are flooding your teenager's social media feeds and it's influencing what they choose to eat - Australian Broadcasting Corporation - May 24th, 2025 [May 24th, 2025]
- Study shows importance of autonomy in social media recruitment for clinical trials - University of NebraskaLincoln - May 22nd, 2025 [May 22nd, 2025]
- Social Media Platforms Are Replacing Google: Why Brands Need to Pay Attention - Media Update - May 22nd, 2025 [May 22nd, 2025]
- Gen Z, TikTok and AI: The Future of Personalized Marketing - WWD - May 22nd, 2025 [May 22nd, 2025]
- 5 Fashion Brands That Dominated the Met Gala Social Conversation - The Business of Fashion - May 22nd, 2025 [May 22nd, 2025]