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.

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