Autumn Statement TL;DR? Here’s our at-a-glance guide
Chancellor Philip Hammond spoke for around an hour while delivering today's Autumn Statement. If you don't have time for that, here's our at-a-glance overview of the announcements you need to know:
Economics, public spending and politics
- The Office for Budget Responsibility (OBR) forecast for growth increased to 2.1 per cent, up from two per cent, for 2016, but was cut sharply to 1.4 per cent, down from 2.2 per cent, for 2017. OBR also predicts 1.7 per cent growth in 2018, 2.1 per cent in 2019 and 2020, and two per cent in 2021.
- The UK will no longer be in surplus by 2019-2020.
- Public sector net borrowing is forecast to be £68.2bn in 2016-17,£59bn in 2017-18, £46.5bn in 2018-19, £21.9bn in 2019-20 and £20.7bn in 2020-2021.
- Consumer Price Index inflation predicted to rise to 2.3 per cent in 2017, and to be two per cent by the end of this parliament.
- Departmental spending plans to be maintained from last year's Autumn Statement, although Ministry of Justice handed emergency funding to deal with urgent problems with prison safety.
- Autumn Statement to be scrapped, and replaced with an autumn Budget next year and a Spring Statement from 2018.
Research, development and innovation
- New £23bn National Productivity Investment Fund to be established, with spending spread out between 2017-2018 and 2021-2022.
- Extra investment in research and development to rise to £2bn by 2020-2021, as previously announced by Prime Minister Theresa May on Monday.
- £400m announced in venture capital for startups, to be distributed through the British Business Bank. This should unlock £1bn in investment for new and growing firms.
- Also as announced by the Prime Minister earlier this week, Sir Damon Buffini to led a Treasury advisory panel into barriers to long-term financing for growing firms.
- Government has commissioned an annual State of UK Fintech report and will launch a network of regional fintech envoys.
- Sir Charlie Mayfield’s review of business productivity to be implemented.
Trade
- OBR predicts the current account deficit will narrow to five per cent of GDP in 2017, 4.2 per cent in 2018, 3.4 per cent in 2019, 2.8 per cent in 2020 and 2.7 per cent in 2021.
- Capacity of UK Export Finance, Britain's export credit agency, to be doubled, while the number of pre-approved local currencies in which it can offer support to be increased from 10 to 40.
Regional powers and spending
- London and Greater Manchester to be transferred the budget for the Work and Health Programme.
- Greater London Authority’s affordable housing settlement for £3.15bn to deliver over 90,000 affordable houses confirmed.
- Adult education budget to be devolved to London from 2019-2020.
- £1.8bn in Local Enterprise Partnerships to be awarded across England.
- Midlands Engine strategy report to be published shortly, and arrangements for Northern Powerhouse Investment Fund and Midlands Engine Investment Fund confirmed, with the British Business Bank to make first investments from Northern Powerhouse fund in early 2017.
- Over £250m in extra infrastructure spend announced for Northern Ireland, over £800m for Scotland and over £400m for Wales.
Personal tax
- Income tax personal allowance to be increased to £11,500 from next April, while higher rate income tax threshold to increase to £45,000. The government also remains committed to increasing the personal allowance to £12,500 and the higher rate cut-off to £50,000.
Savings and pensions
- New government-backed three-year investment bond to be set up in time to go on offer by the next Budget. This will offer 2.2 per cent interest on deposits of up to £3,000, and will be available through NS&I.
- Pension triple-lock has been locked in until the end of this parliament.
- Consultation to be launched into tackling pensions scams, including looking into banning cold calling.
Employment
- Salary sacrifice schemes scaled back, with tax benefits scrapped from next April for all but pensions, low emissions cars, childcare and cycle-to-work initiatives.
- National living wage to be increased from £7.20 per hour to £7.50 per hour. National living wage to be increased from £7.20 per hour to £7.50 per hour. National minimum wage for those under 25 will also be increased, with the amount depending on worker’s age.
- Employee and employer national insurance thresholds to be aligned to £157 per week from next April onwards.
Business tax
- Corporation tax to fall to 17 per cent by 2020, following the roadmap already set out by George Osborne in the March Budget, and burden of business rates to be slashed by £6.7bn over the next five years.
Housing
- £2.3bn housing infrastructure fund announced, which will be put towards building 100,000 new homes in high demand areas.
- More investment in affordable housing, including £1.4bn to build 40,000 new homes.
- £1.7bn to be ploughed into accelerated construction on public sector land.
- Large scale regional pilot of right to buy revealed for council tenants.
- As trailed beforehand, fees from letting agents for renters to be banned, with landlords likely to be asked to stump up costs instead.
Transport
- £1.1bn set aside fto be invested in English transport networks, with an extra £220m to be invested to tackle so-called traffic pinch points on key roads.
- £450m to put towards a trial digital signalling technology to improve reliability across the train network.
- £390m allocated to driverless and electric cars, including £100m for new testing infrastructure for driverless cars, £80m for charging stations and infrastructure for ultra low emission vehicles, £150m for low emission buses and taxis and £20m to develop alternative aviation and heavy goods vehicles fuels.
Digital and technology
- £1bn to be invested in a new digital network, which will include supporting 5G and broadband.
- 100 per cent business rates relief for new full-fibre infrastructure for a five years from next April to support the roll out to homes and businesses.
Oil, gas and energy
- Fuel duty increase scrapped for the seventh year in a row, saving the average car driver £130 a year and the average van driver £350 a year.
- Government will be "unafraid to intervene" in retail energy market if it finds evidence of market failure.
- Carbon price support will continue to be capped out to 2020.
- Government remains committed to the plans set out in the March Budget for the North sea oil and gas sector, but no new support announced.
- Communities near fracking sites to get say on how to spend £1bn Shale Wealth Fund.
Insurance
- Insurance premium tax increased from 10 per cent to 12 per cent in June 2017, the third hike since last November.
- Reforms expected to be implemented for whiplash compensation.
- £170m to be invested in flood defence and resilience measures.
Tax Avoidance
- Government renewed its commitment to tackling tax avoidance, including introducing a new penalty for so-called enablers of tax avoidance, where the arrangement in question is later successfully challenged by HMRC.
- Government will also go ahead with plans to restrict the amount of losses carried forward multinational companies can use to reduce their tax bill.