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Autumn Statement 2016

Autumn Statement 2016

Autumn Statement 2016

Date: November 23, 2016

The points below are key highlights from the 2016 Autumn statement.

ECONOMY
Chancellor: Today I am publishing a new draft Charter for Budget Responsibility, with 3 new fiscal rules.

Fiscal rule 1: borrowing should be below 2% by the end of this parliament

Fiscal rule 2: Public sector net debt as a share of GDP must be falling by the end of this parliament

Fiscal rule 3: Welfare spending must be within a cap, set by the government and monitored by OBR

OBR forecasts debt will peak at 90.2% of GDP in 2017-18 and fall to 89.7% of national income in 2018-19

Hammond says public spending has a proportion of GDP has fallen to 40%.

TAX
“Corporation Tax will fall to 17% by far the lowest rate of overall corporate tax in the G20”

Hammond says from April 2017 employers and employees who use benefits in kind schemes will pay the same tax as everyone else.

From April there will be100% business rates relief on investment in new fibre.

Hammond: The government will stick to the business tax plans set out in the March budget.

Hammond says insurance premium tax will rise from 10% to 12%.

Chancellor: There will be a new penalty for people who use a tax avoidance scheme HMRC closes down.

Chancellor: We’ll deliver on our commitment to raise the Personal Allowance to £12,500 by the end of the parliament.

Chancellor announces govt will deliver on commitment to raise the higher rate threshold to £50,000 by the end of parliament.
“Starting in 2017 Britain will have an autumn Budget, announcing tax changes well in advance of the start of the tax year”.

TRANSPORT
“£450 million to trial digital signalling on our railways to achieve a step-change in reliability”

PERSONAL FINANCE
The National Living Wage will increase from £7.20 to £7.50 in April 2017.

Chancellor: We will launch a new market-leading savings bond through NS&I.

HOUSING
New £2.3bn Housing Infrastructure Fund for infrastructure for up to 100,000 new homes in high demand areas.

Chancellor: “I am doubling UK Export Finance capacity to make it easier for British businesses to export”.

Hammond: “I can announce today that we will ban letting fees to tenants as soon as possible”

LOCAL GOVERNMENT
Chancellor: I can announce the allocation of £1.8 billion from the Local Growth Fund to the English regions.

Chancellor announces that the government is beginning negotiations on a city deal for Stirling.

Chancellor: “City regions will get new borrowing powers”

WELFARE/SOCIAL
Chancellor says that the government has no plans for further welfare savings measures in this parliament beyond those already announced

Chancellor: From April the Universal Credit taper rate will be reduced from 65% to 63%.

INVESTMENT
Chancellor announces a £23 billion National Productivity Investment Fund.

Chancellor: More than £1bn will be invested in digital infrastructure.

REGULATION
Chancellor announces a further £102m of LIBOR bank fines to Armed Forces and Emergency Services
charities

ENTERPRISE
£400m to be invested to help UK start-ups avoid being taken over by larger competitors.

LEGAL
Ministry of Justice will get extra funding for another 2,500 prison officers.

The government will change the rules on whiplash compensation, saving drivers £40 a year on average.

Chancellor: Pension cold calling will be banned.