We have been waiting with interest to see what George Osborne was going to say in his Autumn Statement today. Opening remarks The Chancellor says Britains economic plan is working but the job is not done, we need to secure the economy for the long terms and the biggest risk to that comes from those that would abandon the plan. He says We need a plan where we dont pretend we can make things better by writing cheques to ourselves. Forecasts show the growth is up, but growth in productivity is still too low, business taxes are still too high and exports are still too low.
We have been waiting with interest to see what George Osborne was going to say in his Autumn Statement today.
Opening remarks
The Chancellor says Britains economic plan is working but the job is not done, we need to secure the economy for the long term and the biggest risk to that comes from those that would abandon the plan.
He says: “We need a plan where we dont pretend we can make things better by writing cheques to ourselves. Forecasts show the growth is up, but growth in productivity is still too low, business taxes are still too high and exports are still too low”.
Housebuilding and property
He says the latest survey shows residential construction growing at fastest rates in a decade. He pledges a billion pounds of loans to unblock housing developments on sites in Manchester, Leeds and other sites across the country.
Aldermore and Virgin, two challenger banks, are joining Help to Buy this month.
Osborne announces a capital gains tax for foreign buyers of British property from April 2015. Will this make foreign buyers go elsewhere? But it will raise money for the treasury and might help to cool the over heated London market.
Summary of Economic Growth
Growth forecast for this year increased from 0.6% to 1.4%, for next year revised up from 1.8% to 2.4%.
GDP declined by 7.2% in 2008-09, not 6.3% as previously thought, equivalent in value to £112bn. As stated in revised figures by the Office of National Statistics.
Export finance capacity available to support British businesses will be doubled to £50bn.
Boost in start-up loans scheme aiming to help 50,000 more people start their own businesses.
Taxes and Allowances
Largest package of measures to clamp down on tax avoidance in this Government. Predicted to raise £9bn over next five years.
From April 2015, capital gains tax will be imposed on future gains made by non-residents who sell residential property in the UK.
The personal income tax allowance to rise to £10,000 from April 2014, and then from 2015-16 to increase by the Consumer Prices Index (CPI) measure of inflation.
A married couples and civil partners tax break, which is set to cost about £700m a year, is proposed to start in April 2015.
Business rates in England and Wales to be capped at 2% rather than linked to RPI inflation, with some retail premises in England to get a discount. Businesses moving into vacant properties will have their rates cut by 50%.
From April, a new tax relief is to be introduced for investment in social enterprises and new social impact bonds.
Transport
Osborne will keep train fares flat in real terms in January. He will cancel next years fuel duty rise, saying this saves 20p a litre, or £11 every time motorists fuel up.
Unemployment
Unemployment is forecast to fall by 7% by 2015 and current benefits claimants are down by 200,000
Unemployment expected to fall further to 5.6% by 2018.
Total number of jobs to rise by 400,000 this year and 3.1 million jobs predicted to be created by 2019.
Pensions
On the state pension, he says next April it will rise by a further £2.95 a week, making pensioners more than £800 a year better off. He confirms reports this morning about bringing forward the rise in the pension age for those currently under 40.
The Government will increase the pensionable age to 68 in the mid-2030s and 70 in the mid-2040s, which he described as a “difficult decision governments have to take if serious about guarding finances”. Pension age “has to keep in line with life expectancy”. People should spend a third of adult life in retirement.
Wow, wed better work on that plan B to retire early!
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