Financial News
- 6 December 2012, 12:19
Autumn Statement: The Key Points At A Glance
The main measures and forecasts from the Chancellor George Osborne in his Autumn Statement:
:: Most working age benefits, including Jobseeker's Allowance, will rise by 1% in each of the next three years. Changes to welfare "save £3.7bn by 2015/16". Child benefit to rise by 1% for two years from April 2014.
:: ISA limit raised to £11,520 and basic state pension to rise 2.5% from April. Public sector workers to see average 1% rise in earnings.
:: National pay arrangement in NHS and prison service to continue, and no changes to civil service arrangements, but greater freedom for schools to set pay in line with performance.
:: Will collect £7bn more in tax than the last Government to tackle "evasion" and loopholes. More resources (£77m) to ensure multinational firms "pay their fair share" and avoidance is reduced.
:: Fuel duty escalator "scrapped". Planned 3p a litre rise due in January is cancelled.
:: Income tax threshold increased by £235 in 2013. Means no tax paid on earnings under £9,440.
:: "Need to ask more of the better off": No new homes tax. From 2014/15 the pension lifetime pot relief will fall from £1.5m to £1.25m; annual allowance down from £50,000 to £40,000. This affects top 2% of pension pots.
:: 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.
:: Corporation Tax rate cut by further 1% from April 2014.
:: The Bank Levy Rate will be increased to 0.130% next year.
:: Capital Gains Tax annual exempt amount to increase by 1% over the same period, reaching £11,100 and Inheritance Tax nil-band rate to rise from £325,000 now to £329,000 in 2015/16.
:: £1bn more for road improvements - upgrading A1, A30, and M25. Funding guarantee for extension to Northern Line tube.
:: £600m more on scientific research infrastructure.
:: £1bn to expand good schools and build more.
:: The deficit has fallen by a quarter in "just two years". Forecast to fall this year to 6.9% of GDP. Borrowing forecast for 2012/13 is therefore £108bn. It will take one extra year to reach his debt target.
:: Office for Budget Responsibility now forecasts GDP growth -0.1% in 2012, blaming Eurozone crisis. Sees growth of 1.2% in 2013, 2% in 2014 and 2.3% in 2015. OBR expects jobless rate to peak at 8.3% (currently 7.9%).
:: Has delivered £12bn in Whitehall spending cuts. More on the way. Government department resource budgets reduced by 1% next year with schools and hospitals protected.
what do you think?
tyneview33
Excellent.
Ben Ralph
Same old same old. All in this together? Seems some are in this more than others
t.bulgin
So, have you actually read the above or are you just on auto pilot. ? (Auto pilot set to winge of course)
Ben Ralph
So which bit is good for you? inheritance tax threshold going up to 329k? Whilst pensioners pay more tax? That helps the working man! How about top rate tax allowance going up? That helps the working man! Fuel duty escalator scrapped, you think the petrol companies wont put the price up anyway?
Chris Robinson
Don't worry, Ben, HE'S alright, Jack.
Grant Berry
NOT BAD AT ALL.................... 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 Deficit fallen by a quarter in last two years Government spending as share of GDP predicted to fall from 48% in 2009/10 to 39.5% in 2017/18
Nigel L
Simply that, just a forcast, who knows what will really happen
Ben Ralph
Of course, that includes the forecast monies from the sale of the 4g phone network. No-one actually knows how much that will be. More optimistic guesswork from Gideon.
Chris Robinson
Come the election - VERY GOOD - the day of reckoning.
Alf Bibby
Granty Granty Granty you turnip Bowwing up economy economy wavering on a triple dip recession long term unemployment highest ever women uneployment highest ever youth unemployment highest ever two and a half years and no growth highest number ever of people visiting foodbank highest ever of people homeless tory legacy it makes you feel sick
Grant Berry
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 NOT BAD AT ALL.
Nigel L
Income tax threshold for pensioners cut from £ 10500 this to £ 9,440 from April VERY BAD
Chris Robinson
The rich are still making money hand over fist, still dodging taxes thus the real scroungers.
Grant Berry
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 NOT BAD AT ALL.
Ben Ralph
Great. Only 8% out of work. Not counting the millions forced into part time, low paid work because there's no full time work out there
Chris Robinson
The tea spoonful of jobs created are either part-time, temporary and ALL are low paid where workers have to queue at the only booming new industry - food banks.
Alf Bibby
Granty Granty Granty you gurkin Thatl figure will still be higher than when this unelected con merchants came to governement What kind of jobs are they self employed leaflet droppers and self employed cold callers working for expences
Grant Berry
The 3p-a-litre increase in fuel duty, planned for next January, is cancelled NOT BAD AT ALL.
Nigel L
Easily made up by the increase in VAT to 20% and Osbourne had the front to say that tax on fuel hadnt risen for 3 years.
Ben Ralph
Think the petrol companies wont put the price up to cover the lost revenue?
Chris Robinson
Gideon was NEVER going to hike fuel tax. He held that back to look as if he could make a gift of it. So he's abolished a rise that was never in place - politicking in its most crude form.
Alf Bibby
Granty Granty Granty. you are a stewpot. Gormless George fell right into Labours trap over fuel, these same Tories who cheered for no increase today actually voted for an increase a couple of weeks ago talk about sheep. Tax cuts for the rich and the hardworking have to pay for it Typical Tories
Gafyn Williams
Grant are you one of those paid political aides charged with attempting to raise the Cons profile on the internet for a bit of extra cash on the side.
bjnk
He announced this cancelled fuel price hike as though it was his idea and no pressure had been put on him.Well folks if you did not know fairfuel.co.uk have been lobbying for this for many months,and thousands of us through them have written and emailed our mp's to get this scrapped. People Power.
t.bulgin
"The deficit has fallen by a quarter in "just two years". Nice one. Keep up the good work Ossie. Also, why is there a picture of balls up there ? apart from being insignificant, hes not mentioned in the item.
Grant Berry
Just as a reminder of how bad things could have been with bliar/brown's children.....
Alf Bibby
What a botched up Autumn Statement a coalition in trouble acoalition that as not got a clue. Tax cuts for the rich, welfare cuts for the hard working. Did yo see the faces of Rag Tag and Bobtail when Ed Balls was tearing into them
bjnk
Realy tb,seen the figures to confirm this have we. Cant see how this can possibly be as his borrowings have hit records. Paying down the deficit with borrowed and printed money does not work.
Martin Peacock
Osborne has taken the right approach. Not one big push which would achieve nothing and possibly do some damage as well, but a series of small, carefully considered, easily monitored and controlled pushes, which should act in concert to produce a steady, and above all CONTROLLED, improvement in the UK economy. "Softly softly catchee monkey." We will see the results when consumer spending starts to increase, resulting in reductions in unemployment and increases in tax revenue. AT LAST we see the beginning of a virtuous circle.
Alf Bibby
Living in cloud cuckoo land Martin. Roll on the next Election
Ben Ralph
Where's the money coming from to fuel consumer spending? You need work paying a liveable wage for that.
Ben Ralph
So if you have no sick relatives, no family members out of work, no kids trying to find affordable housing, you live in a house worth more than 300k and pay top rate tax. You win!
Eric Clutterbean
lets be honest all these forecasts will be wrong
brian foster
Remember this MESS was the result of 13 years of LABOUR miss managment,if you want these idiots in again you deserve all the mess they WILL give you
Ben Ralph
Before we start with the "labour's fault" rubbish. Who were the opposition parties who voted Labour's plans through? Funny enough, Cameron and Clegg thought they were good ideas at the time.
richard chaplin
the biggest increases in expenditure most people face aare utility bills,who sold off gas,electric water,look at the profits they make each year which could be going in the countrys kitty
romsey1891
Nice to see that the ISA limit has been raised to £11,520 per annum.Now i know what to do with the spare £960 per month i have left over after house-hold expenses.LOL.
Roger W Patrick
another miracle "cure" from the "Party Which Knows Best!", presided over by a bunch of millionaire twerps who still don't know the price of a pint of milk, supported by berks like "Foster" who are STILL blaming Labour, and conveniently forgetting it was the greedy Bankers who caused the actual mess, and Labour who tried to protect the ordinary people's savings! I reaslly don't think Joe Public will be fooled by this any longer!
bjnk
Well said Roger.
Paul Grice
Having read through some of the rubbish on here it's very plain to see the labour Looney mob are out in force Well be careful what you labour idiots wish for because the bunch of want to be s you have running the party are totally brain dead.If the labour party actually had any credible MPs then fair enough but also remember who the wonderful people were who put us in this predicament .SERIOUSLY DO YOU THINK That the present labour party will make things better they can't even give us any reasonable argument to say that their plan would do because they have not got one BRING BACK LABOUR REALLY !!!!!!!
bjnk
You may be right, but can you imagine how much worse it would have been if the loony cons had been in power when this world recession started,at least GB took measures to minimise the impact and were on the road with growth until this mob took over and its been downhill since. Actually thinking about it no plan is better than the one being implimented at this time.
Jonathan Goodwin-Self
Cut the overseas aid by 100%, tax those 3 firms properly and tax millionaires properly and this would get about 50 billion. Leave the EU and that would save about 3 trillion. But Osborne promised a load of tax cuts in 2009 and every year after he has lied together with Cameron
David Wragg
1:41pm on 5/12/2012
Scrapping overseas aid would double the 'Whitehall spending cuts'.
romsey1891
7:46pm on 5/12/2012
Any idea why our govt gives overseas aid to some questionable governments instead of giving the money to charities direct such as Save the children,Oxfam,etc?.surely then the money would be directed at people who would benefit,rather than indirectly spent on arms etc.
Gafyn Williams
8:00pm on 5/12/2012
Its this vision they have for one world, united under Mammon.