Talking points from the Autumn Statement
Phillip Hammond has delivered his first Autumn Statement as chancellor. What impact has this had on the previous direction of George Osborne’s six year tenure, and with new Prime Minister Theresa May at the helm, has there been any significant change in course?
We take a look at the key talking points and what it means for the UK moving forward.
So often the focus when it comes to the status of our country’s finances, the deficit broadly speaking refers to the level of debt we as a nation are in. The government has forecast to be £122bn worse off in the period until 2021 than previously stated in George Osborne’s final statement back in March.
- Other key points:
- Debt will rise from 84.2% of GDP to 87.3%
- Public spending 40% of GDP, down from 45% in 2010
- Borrowing to peak at £68.2bn this year, down to £20.7bn by 2020-21
Steady growth has been made since the mother of all recessions with the forecast for 2016 upgraded from 2% to 2.1% in the Autumn Statement. Moving forward, rates for 2017 have been downgraded from 2.2% to 1.4%, with forecasts at 1.7% in 2018, 2.1% in 2019 and 2020, and 2% in 2021.
- Talking point:
- The government is no longer seeking to eradicate the deficit and enter a surplus by 2020 – this was George Osborne’s flagship economical promise.
This is a hot topic of conversation not just in the Autumn Statement but for UK politics generally. It is common knowledge that the housing market is facing difficulties, with rapidly rising asking prices, unrealistic rents and a general shortage of affordable housing creating many talking points.
- What’s new?
- Ban on upfront fees charged by letting agents
- £2.3bn housing infrastructure to provide 100,000 new homes
- £1.4bn to deliver 40,000 additional affordable homes
How much we pay the government and where it’s coming from. The income tax threshold is set to be raised from £11,000 to £11,500 in April 2017, whilst the National Living Wage will see a bump up from £7.20 an hour to £7.50.
- Other key points:
- Insurance premium tax to rise from 10% to 12%
- Employee and employer National Insurance thresholds to be poised at £157 per week
- Higher rate income tax threshold to rise to £50,000
Infrastructure, transport and developments are commonly budgeted on a regional scale. It is what many of us wait to hear with eager anticipation – after all, it is these budgets that are likely to have more of a direct impact on our individual lives.
- An overview:
- £1.1bn extra investment in English local transport networks
- £23bn to be spent on innovation and infrastructure over five years
- £110m for East West Rail and commitment to deliver Oxford to Cambridge Expressway
- £1bn digital infrastructure investment
- £1.8bn from Local Growth Fund to English regions
- At a glance
- Fuel duty frozen for seventh successive year
- Universal Credit taper rate to be cut from 65% to 63%
- Funding for 2,500 more prison officers
- Tax savings on salary sacrifice to be stopped in parts
- Reforms to compensation for whiplash to cut the cost of motor insurance
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