Earlier today, George Osborne gave his Autumn Statement and Spending Review. There were lots of updates and announcements, so we have highlighted some of the key points from the Chancellor’s speech.
State of The Economy
- Growth of 2.4% has been forecast for 2015.
- Growth in subsequent years forecast to be 2.4%, 2.5%, 2.4% and 2.3%
- The UK and the US are the fastest-growing economies in the world since 2010.
- The deficit in 2015/16 will be £73.5bn. This is forecast to fall each year, resulting in a £10.1bn surplus in 2019/20.
- Business department funding will be cut by 17%.
- Uniform business rates will be abolished, with elected mayors permitted to raise rates (under certain conditions).
- 600,000 small businesses will receive business rate relief for another year.
Pensions, savings and personal taxation
- The proposed £4.4bn cuts to tax credit will be abandoned.
- State pension will rise to £119.30 per week in 2016. An increase of £3.35 a week.
- Savings credit will be frozen at the current level.
- Every individual and small business are to have their own digital tax account within the next 5 years.
Welfare and tax credits
- £12bn in welfare savings will be delivered in full.
- Housing benefit and pension credit payments will be stopped for people who leave the country for more than a month.
- The department of Work and Pensions budget will be cut by 14%.
Housing and local government
- There will be a new 3% surcharge on stamp duty for buy-to-let properties and second homes from April 2016.
- Local government will keep the revenue generated from business rates by the end of the Parliament.
- Local government spending will be the same in 2020 as in 2015.
- The NHS budget will rise to £120bn by 2020-21.
- The health service will receive a cash injection of £6bn in 2016.