This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/uk-politics-38068358

The article has changed 17 times. There is an RSS feed of changes available.

Version 9 Version 10
Autumn Statement: 'Resilient' economy for Brexit promised Autumn Statement: 'Resilient' economy for Brexit promised
(35 minutes later)
Chancellor Philip Hammond vowed to make the UK economy "resilient" for leaving the EU as forecasts pointed to an increase in borrowing and slower growth. Chancellor Philip Hammond vowed to make the UK economy "resilient" for leaving the EU as forecasts pointed to higher borrowing and slower growth.
In his Autumn Statement Mr Hammond said the UK's deficit would be cleared "as early as possible" after 2020. In his Autumn Statement Mr Hammond said the UK's deficit would no longer be cleared by 2020 - with a target instead of "as early as possible" afterwards.
He pledged new infrastructure spending and billions of pounds for housing.He pledged new infrastructure spending and billions of pounds for housing.
Labour has predicted the chancellor would fail to help people on low and middle incomes. Labour said the government was "unprepared and ill-equipped" for Brexit and had "no vision".
Presenting the Office for Budget Responsibility's forecasts, Mr Hammond said borrowing would hit £68.2 billion this year and £59 billion next year compared with the March forecast of £55.5 billion and £38.8 billion. Mr Hammond told MPs the statement - his first major Commons event as chancellor - came exactly five months after a Brexit vote which "will change the course of Britain's history", making it "more urgent than ever" to tackle long term economic weaknesses.
The OBR predicted growth this year would be 2.1%, higher than the 2% forecast in March, but said it would fall to 1.4% next year before recovering to 1.7% in 2018, 2.1% in 2019 and 2020 then 2% in 2021. Presenting the Office for Budget Responsibility's forecasts, he said borrowing would hit £68.2 billion this year and £59 billion next year compared with the March forecast of £55.5 billion and £38.8 billion.
Mr Hammond also said the government would prioritise "additional high-value investment" on infrastructure, which would be funded by additional borrowing. The OBR said the referendum result meant potential growth in the current Parliament would be 2.4 percentage points lower than forecast in March. Government finances are forecast to be £122bn worse off than in the spring.
Among the chancellor's announcements were:
Mr Hammond said the government would prioritise "additional high-value investment" on infrastructure, which would be funded by additional borrowing.
A new £23bn "national productivity investment fund" would tackle the UK's "shocking" productivity gap with other countries, he said.A new £23bn "national productivity investment fund" would tackle the UK's "shocking" productivity gap with other countries, he said.
Among the measures to be announced are:
The government has also announced an extra £2bn a year for science by 2020, a crackdown on compensation claims for whiplash injuries aimed at reducing motorists' insurance premiums and £1.3bn to improve roads.The government has also announced an extra £2bn a year for science by 2020, a crackdown on compensation claims for whiplash injuries aimed at reducing motorists' insurance premiums and £1.3bn to improve roads.
The government has also faced calls to abandon planned cuts to Universal Credit, due to come into force in April 2017, which critics say will hit people who are "just about managing" - the group Prime Minister Theresa May has promised to protect. Mr Hammond paid tribute to his predecessor George Osborne but said he would now follow three new fiscal rules: To balance the books "as early as possible in the next Parliament", for public sector net debt to be falling as a share of GDP by the end of Parliament and for welfare spending to be within a cap.
Follow the Autumn Statement on the BBC Benefit changes
The chancellor received a boost on Tuesday as official figures showed the government borrowed a lower-than-expected £4.8bn last month. At the end of his speech, he revealed the Autumn Statement would be scrapped in future years, saying there was no need for major tax changes to be made twice a year.
Despite this he is expected to announce an extra £100bn of public borrowing for the next five years, compared with what was planned in March - largely because the economy is expected to grow less quickly than had been thought. Instead, he added to laughter from MPs, there would be a "Spring Statement" where the government would respond to OBR forecasts, and the Budget would take place in the Autumn.
Changes to Universal Credit - the flagship single payment being rolled out across the UK - will reduce the "taper rate" from 65% to 63%. This means benefits will be withdrawn at a rate of 63p for every pound of net earnings.Changes to Universal Credit - the flagship single payment being rolled out across the UK - will reduce the "taper rate" from 65% to 63%. This means benefits will be withdrawn at a rate of 63p for every pound of net earnings.
The government said about three million households would benefit.The government said about three million households would benefit.
But the Resolution Foundation think tank said their gains would be "small fry" compared with previously-announced cuts to the work allowance, which is the amount people can earn before they start to lose their benefits.But the Resolution Foundation think tank said their gains would be "small fry" compared with previously-announced cuts to the work allowance, which is the amount people can earn before they start to lose their benefits.
On housing, the government said it would relax rules on how affordable housing funding could be used and promised additional measures in the Autumn Statement.On housing, the government said it would relax rules on how affordable housing funding could be used and promised additional measures in the Autumn Statement.
It said banning letting agents' fees would help 4.3 million private rental tenants.It said banning letting agents' fees would help 4.3 million private rental tenants.
Citizens Advice welcomed measures on the agents' fees and on workers' wages but said more should be done to help "just managing families".Citizens Advice welcomed measures on the agents' fees and on workers' wages but said more should be done to help "just managing families".
Labour, which has been calling for agents' fees to be banned, said: "Any change of heart is welcome" but added that the government had "no plan" to fix the housing crisis.Labour, which has been calling for agents' fees to be banned, said: "Any change of heart is welcome" but added that the government had "no plan" to fix the housing crisis.
Shadow chancellor John McDonnell said the reduction in the Universal Credit taper rate would be "too little, too late for those working families who have had to bear the brunt of six wasted years of failed Tory economic policies".Shadow chancellor John McDonnell said the reduction in the Universal Credit taper rate would be "too little, too late for those working families who have had to bear the brunt of six wasted years of failed Tory economic policies".
"Despite all their rhetoric last month, and before the ink is even dry on the Autumn Statement, it looks like it will be jam tomorrow for working people under Theresa May and Philip Hammond.""Despite all their rhetoric last month, and before the ink is even dry on the Autumn Statement, it looks like it will be jam tomorrow for working people under Theresa May and Philip Hammond."
The SNP said the biggest threat to the economy was "uncertainty caused by this UK government and the threat of a Tory hard Brexit".The SNP said the biggest threat to the economy was "uncertainty caused by this UK government and the threat of a Tory hard Brexit".
What questions do you have about the Autumn Statement?What questions do you have about the Autumn Statement?