Autumn Statement: At-a-glance summary of key points
- Published
Chancellor George Osborne has updated MPs on the state of the economy and the government's future plans in his Autumn Statement. Here are the key points:
FUEL
The 3p-a-litre increase in fuel duty, planned for next January, is cancelled
ECONOMIC GROWTH
Predicted to be -0.1% in 2012, down from 0.8% predicted in the Budget
Forecasts for next few years are: 1.2% in 2013, 2% in 2014, 2.3% 2015, 2.7% in 2016 and 2.8% in 2017
BENEFITS AND PENSIONS
Most working-age benefits to rise by 1% for each of next three years
From 2014-15 lifetime pension relief allowance to fall from £1.5m to £1.25m - annual allowance cut from £50,000 to £40,000
Basic state pension to rise by 2.5% next year to £110.15 a week
Child benefit to rise by 1% for two years from April 2014
Local housing allowance rates to rise in line with existing policy next April but increases in the following two years capped at 1%
Changes to welfare to save £3.7bn by 2015/16
TAXES AND ALLOWANCES
Basic income tax threshold to be raised by £235 more than previously announced next year, to £9,440
Threshold for 40% rate of income tax to rise by 1% in 2014 and 2015, from £41,450 to £41,865 and then £42,285
Main rate of corporation tax to be cut by extra 1% to 21% from April 2014
Temporary doubling of small business rate relief scheme to be extended by further year to April 2014
Inheritance tax threshold to be increased by 1% next year
Bank levy rate to be increased to 0.130% next year.
£5bn over six years expected from treaty with Switzerland to deal with undisclosed bank accounts
HM Revenue and Customs budget will not be cut
ISA contribution limit to be raised to £11,520 from next April
Prosecutions for tax evasions up 80% - with anti-abuse rule to come in next year
No new tax on property value
No net rise in taxes in Autumn Statement
GOVERNMENT BORROWING
Point at which debt predicted to begin falling delayed by a year to 2016/17
Deficit fallen by a quarter in last two years
Deficit forecast to fall this year, as is cash borrowing
Deficit to fall from 7.9% to 6.9% of GDP this year, and to continue falling to 1.6% by 2017/18
Borrowing forecast to fall from £108bn this year to £31bn in 2017/18
£33bn saving to be made on interest debt payment predicted two years ago
Bradford and Bingley and Northern Rock Asset Management brought on to balance sheet, adding £70bn to national debt
GOVERNMENT SPENDING
Period of austerity to be extended by another year to 2017/18
Departments to reduce spending by 1% next year and 2% year after
Local government budgets to be cut by 2% in 2014
Government spending as share of GDP predicted to fall from 48% in 2009/10 to 39.5% in 2017/18
Spending review to take place in first half of next year
JOBS AND TRAINING
Unemployment expected to peak at 8.3%, lower than the previous prediction of 8.7%
Employment set to rise in each year of the parliament
Since general election, 1.2 million jobs created in the private sector
TRANSPORT
Extra £1bn to roads, including upgrading A1, A30, and M25
£1bn loan to extend London's Northern Line to Battersea
EDUCATION AND FAMILIES
£1bn to improve good schools and build 100 new free schools and academies
£270m for further education colleges
Teachers' pay to be linked to performance
INFRASTRUCTURE
Ultra-fast broadband expansion in 12 cities: Brighton and Hove, Cambridge, Coventry, Derby, Oxford, Portsmouth, Salford, York, Newport, Aberdeen, Perth and Derry-Londonderry
£600m for scientific research
Annual infrastructure investment now £33bn
£1bn extra capital for Business Bank
Gas Strategy to include consultation on incentives for shale gas
HOUSING
Funding to assist building of up to 120,000 homes
OVERSEAS AID
Promise to spend 0.7% on development to be honoured next year, but not exceeded