A summary of the measures addressed in today's Autumn Statement.
Growth
- GDP to grow 1.4% in 2013. Growth revised upwards from 1.8% to 2.4% for 2014.
- Growth coming from higher consumer spending.
- Office of Budget Responsibility still expects Eurozone to shrink.
- Coalition looking to boost export opportunities in fast-growing emerging markets.
Debt
- Borrowing is lower than expected this year – down to £111 billion.
- Debt will continue to rise for foreseeable future, peaking at 80% of GDP in 2015/16. By 2018/19 on this measure, will reach account surplus.
- “Cyclical improvement” – debt not dissolving when growth returns.
- Department budgets to be reduced by £3 billion – not applied to local government.
Tax
- Confirmation that personal allowance up to £10K next year.
- “Measures” to tackle tax avoidance / evasion, expected to raise £9 billion over five years.
- Capital gains tax to apply to non-residents selling property from April 2015.
- A rise in the bank levy to 0.156%, raising £2.7 billion in 2014/15.
Pensions
- Pension age to keep track with life expectancy, rising to 68 in the mid-2030s.
- State pension to rise by £2.95 a week next year.
- Opportunity will be made available for extra NI contributions to improve income in retirement.
Businesses
- Business rate rise to be capped at 2% next April.
- Relaxation of rules that discourage small/local firms from taking up new premises.
- For next 2 years, every business with rateable value up to £50K will receive £1,000 cut to rates.
- Employer NI exemption for under-21s.
Education
- Infant school meals for first three years.
- 30,000 further university places next year, with cap to be lifted altogether.
- Measure to be funded by selling the old student loan book.
Welfare / Spending
- New approach from JobCentre Plus to help 16/17 year olds without qualifications.
- 18-21 year-olds signing on without basic skills required to take training.
- Cap announced to overall welfare spending, with cyclical benefits excluded.
Infrastructure
- £1 billion in loans to unlock large housing developments to tackle weakness of housing supply. Regeneration of run-down housing estates.
- Funding for Lending Scheme to relocate to small business lending. Virgin and Aldermore to join alternative Help to Buy stimulus.
- Renewed commitment to invest in A14 (Suffolk).
- Commitment to investment in alternative energy sources such as shale gas and offshore wind power.
Extra
- Average rail fares to rise in line with inflation in 2014 (rather than RPI + 1%).
- £100 million of Libor fines to be made available to military charities.
- Next year's fuel duty rise to be scrapped.