Mark Bretton said: “The critical takeaway of the Autumn Statement for business led LEPs and the local firms they support is the need to drive economic growth amid what the OBR has officially confirmed as a recession. LEP business leaders are at the coal face of how this impacts business, they already lead in their areas on the three growth priorities identified by the Chancellor: low carbon economic growth, increasing vital infrastructure, and working with universities to turn innovation into viable businesses by refocussing the Investment Zones programme.

"On the latter, LEPs have already developed world leading clusters, including life sciences, space, digital, and robotics – and are ahead of the curve in building these clusters in partnership with universities and generating global investment - whether it’s helping Rolls Royce deliver the Small Modular Reactor sites that will help meet our net zero targets, working with local firms and the supply chain on Sizewell C nuclear power station, or brokering innovative clusters for the space, digital, or biotech sectors. For this reason, as the Chancellor said, local LEP leaders look forward to working with Government to consider how best to identify and support these clusters, and offering our expertise to Sir Patrick Vallance as he looks to better exploit and introduce emerging technologies.

"LEPs are already identifying vital economic growth potential and we look forward to working with government to build future growth, but we can’t do this on thin air, LEPs need funding stability to support the hundreds of projects like those above.”

Key takeaways for small businesses

• A freeze in the VAT registration threshold at £85,000 until 2026, which is the turnover at which businesses need to register to pay the tax

• Personal allowance at £12,570 frozen until 2028

• Reduction in the additional income tax rate threshold from £150,000 to £125,140

• Other allowances: the dividend allowance will be cut from £2,000 to £1,000 in 2023-24, then to £500 in 2024-2025 the capital gains tax allowance will be cut from £12,300 to £6,000 in 2023-24, then to £3,000 in 2024-2025

• A package of £13.6bn business rates support will be provided to help businesses through the current economic climate.
Energy

• The Government will continue plans of previous government to spend £55bn to support households and businesses with their energy bills. They will continue the Energy Price Guarantee from April for a further 12 months at a higher level of £3,000 per year for the average household, equivalent to £500 support for every household.

• The Government will introduce additional cost of living payments of £900 for households on means-tested benefits, £300 to pensioner households and £150 for individuals on disability benefits.
• A new national ambition has been set to reduce energy consumption from buildings and industry by 15 percent by 2030, equivalent to a £28bn saving from our national energy bill, or £450 off the average household bill.

• £6bn in new funding for energy efficiency will be provided from 2025, doubling existing funding in this Parliament of £6.6bn.

• The Energy Profits Levy is being increased from 25 percent to 35 percent and will be extended. They are also introducing a temporary 45 percent levy tax on proceeds from electricity generators. Together this will generate £55bn in tax revenue.

• The Business and Energy Secretary will publish further details on the Government's energy independence plans and launch a new Energy Efficiency Taskforce shortly.
Investment Zones

• The Government will change their approach to investment zones which will leverage research strengths by being centred on universities in left behind areas to help build clusters for new growth industries. First decisions announced ahead of the spring budget.