Below is a brief summary of the key points from the Chancellor’s Autumn Statement, announced today:
· Office for Budget Responsibility forecasts economic growth of 2.1% in 2016 (down from 2% it forecast before BREXIT vote); 1.4% in 2017 (down from 2.2%) and 1.7% in 2017 (down from 2.1%)
· No further welfare cuts during this parliament
· National Productivity Investment fund of £23bn
· £2.3bn housing infrastructure fund, aimed at delivering 100,000 new homes
· £2bn investment in R&D
· Investment in Digital Infrastructure, including 5G trials
· From April, 100% business rate relief for investment in new fibre (the digitial version!)
· £400m Venture Capital Fund to support technology firms
· Gap in productivity between London and other UK cities to be addressed through devolution and new borrowing powers for local areas
· Pensions – Triple Lock remains for this parliament
· Corporation tax to continue with reduction in rate to 17% by 2020, as planned
· Insurance Premium tax to increase from 10% to 12% in June 2017
· Salary sacrifice on various benefits in kind to stop from April 2017 (Childcare and pensions saved!)
· Raise the personal allowance to £12,500 by the end of this parliament
· Target loopholes in inappropriate use of Flat Rate VAT schemes
· National Living Wage to increase to £7.50 from April 2017
· Ban on letting agent fees to tenants
· Fuel duty frozen
· The Autumn statement to be abolished, and to be replaced by Autumn Budget and Spring statement.
For more details on any of these announcements, contact us at andrew@aj-accountancy.co.uk
