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