Autumn Statement: The Key Announcements

November 29th, 20114:46 pm @


Autumn Statement: The Key Announcements

The key points outlined by George Osborne in his Autumn Statement to the House of Commons:

::“We will do whatever it takes to protect Britain from this debt storm” in Europe.

:: Office for Budget Responsibility does not predict a recession in UK.

:: OBR forecast: GDP growth estimated at 0.9% in 2011. 0.7% in 2012 (down from 2.5%).

:: Borrowing falling but not as fast as forecast.

:: OBR sees additional borrowing of £5bn in 2011/12, £20bn in 2012/13 and £30bn in 2013/14.

:: Public sector pay awards set at average of 1% increase after the pay freeze ends next Spring.

:: NHS and schools budgets protected.

:: Deal on public sector pensions is “fair”.

:: Basic state pension to rise by £5.30 next April. Pension credit also uprated by £5.30.

:: In 2026 – state pension age will rise to 67.

:: Benefits uprated by 5.2% next April.

:: Credit Easing to help small business – ceiling of £40bn. National Loan Guarantee Scheme to use country’s record low interest rate to ease interest rates charged to firms who borrow from banks.

:: Country’s low rate to benefit families too through mortgage indemnities. Will reinvigorate “right to buy” to also help construction sector.

:: Bank Levy rate to rise from January 1st.

:: National Infrastructure Plan to get Britain building to improve roads, bridges, rail, schools etc. It will be paid for through”British savings for British jobs.” £20bn to come from pension schemes.

:: £5bn of additional Government spending on infrastructure plan – 90% of homes will have access to super-fast broadband.

:: Regional Growth Fund for England to get extra £1bn.

:: £0.5bn for science projects.

:: Health Safety red tape to be cut further for small firms.

:: Corporate tax rate to fall to 25%.

:: Business rates holiday extended until April 2013.

:: 8.7% unemployment rate forecast for next year by OBR.

:: New Youth Contract to offer work experience and assistance getting into private sector to help ease youth unemployment.

:: Extra £1.2bn to schools with 100 extra ‘free schools’. Maths Free schools to help UK’s science industry.

:: Free nursery places for 40% of the country’s 2-year olds (260,000)

:: Planned 3p per litre fuel duty increase in January is cancelled. August’s planned increase to be reduced.

:: Rail fares capped at 1% higher than CPI inflation.

Article source: