Autumn statement 2016 - as it happened

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Where are we now?


• “The fastest growing major advanced economy in the world”

• OBR report confirms underlying strength and resilience of British economy


The Chancellor’s aims

• Tackling the productivity gap and the housing challenge

• “A focus on building Britain’s long-term future”

• “Building a country that works for everyone”

• Prioritising investment in infrastructure and innovation


The Public Sector Borrowing Requirement

• Tax receipts lower than expected this year

• “We will maintain our commitment to fiscal discipline”

• The Government is no longer planning for a surplus in 2019/20

• It is aiming for a surplus as soon as possible in the next parliament

• Cyclically adjusted borrowing should be below 2% of GDP by the end of this parliament

• Public sector net debt as a share of GDP to be falling by the end of this parliament

• Welfare spending to be within a cap set by the government and monitored by the OBR

• No further welfare saving measurements planned in this parliament beyond those already announced


Economic growth

• Growth forecast to be 2.1% in 2016, then in future years 1.4%, 1.7%, 2.1%, 2.1% and 2.0% in 2021

• Employment at a record high, having grown fastest over the last year in the North East


Spending measures

• National productivity investment fund for R&D and innovation

• Doubling UK export finance capacity

• Devolution to regions of various financial responsibilities

• Extension of ‘city deals’

• Budgets of key public services maintained

• ‘Triple lock’ for pension increases continues

• Additional funding for NHS


Housing

• Investment in infrastructure to unlock land for housing

• A housing white paper to be published.

• Increased right to buy for housing association tenants

• “Delivering a housing market that works for everyone”


Business tax

• Corporation tax to fall to 17% as previously announced

• 100% first year capital allowances for electric vehicle charging infrastructure

• Transitional relief for business rates made more generous

• Insurance premium tax up from 10% to 12%

• Restrictions on corporate interest relief and changes to company loss relief confirmed


Personal tax

• Personal allowance increased to £11,500 from April 2017

• Personal allowance increased to £12,500 by the end of the parliament

• Higher rate threshold  to be £50,000 by the end of the parliament

• Measures against salary sacrifice

• Employee shareholder status abolished

• £157 aligned threshold for employee and employer national insurance contributions


Other

• Universal credit taper rate reduced from 65% to 63%

• Examination of retail energy market

• Letting fees to tenants banned

• New savings bond through NS&I

• Fuel duty frozen for seventh successive year

• Tax free childcare rolled out from next year as planned


The fiscal timetable

• Budget moved to Autumn from 2017, with spending statement in Spring from 2018

 

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Peter Oddey

Excellent. Laconic, informative, accurate and rather helpful as I have a breakfast presentation tomorrow.

Many thanks

Peter