This article is from the source 'guardian' 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 https://www.theguardian.com/uk-news/2016/nov/23/autumn-statement-philip-hammond-economy-personal-finance-business
The article has changed 4 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| What to look out for in the autumn statement What to look out for in the autumn statement | |
| (about 3 hours later) | |
| The economy | The economy |
| GDP Economic growth is slowing. A 2% forecast for next year is expected to be revised down to nearer 1%. | GDP Economic growth is slowing. A 2% forecast for next year is expected to be revised down to nearer 1%. |
| Disposable incomes Household spending power has risen in the past two years after wages rises of 2% to 2.5% outstripped zero inflation. Inflation is now expected to hit between 2% and 3% with wages growth at around 2%, eating into disposable incomes. | Disposable incomes Household spending power has risen in the past two years after wages rises of 2% to 2.5% outstripped zero inflation. Inflation is now expected to hit between 2% and 3% with wages growth at around 2%, eating into disposable incomes. |
| Exports The amount the UK sells abroad has fallen as a proportion of GDP for decades. The OBR will want to avoid accusations of political interference if it forecasts a post-Brexit acceleration of the trend. | Exports The amount the UK sells abroad has fallen as a proportion of GDP for decades. The OBR will want to avoid accusations of political interference if it forecasts a post-Brexit acceleration of the trend. |
| Fiscal targets | Fiscal targets |
| The annual deficit A shortfall that reached £155bn in 2009/10 was forecast in March to fall to £55.5bn in 2016/17. The OBR is expected to say its forecast was wrong, and it will be nearer £65bn. | The annual deficit A shortfall that reached £155bn in 2009/10 was forecast in March to fall to £55.5bn in 2016/17. The OBR is expected to say its forecast was wrong, and it will be nearer £65bn. |
| Public investment Ahead of the autumn statement, the chancellor has announced around £5bn of extra spending, but there could be more to come. | Public investment Ahead of the autumn statement, the chancellor has announced around £5bn of extra spending, but there could be more to come. |
| Whitehall departmental spending After a deep cut in 2014 and a boost last year, another easing in austerity is expected. | Whitehall departmental spending After a deep cut in 2014 and a boost last year, another easing in austerity is expected. |
| Welfare spending Universal credit will taper for longer, Hammond says, allowing recipients to keep more of the benefit. Pensions costs keep escalating, pushing up the overall benefits bill. | Welfare spending Universal credit will taper for longer, Hammond says, allowing recipients to keep more of the benefit. Pensions costs keep escalating, pushing up the overall benefits bill. |
| Productivity From 2010 onwards the Office for Budget Responsibility (OBR), the Treasury’s independent forecasting unit, has assumed a 2% annual gain in productivity. It hasn’t happened and another downgrade is expected. | Productivity From 2010 onwards the Office for Budget Responsibility (OBR), the Treasury’s independent forecasting unit, has assumed a 2% annual gain in productivity. It hasn’t happened and another downgrade is expected. |
| Personal finance | Personal finance |
| Personal allowance The chancellor could begin to honour the Conservative manifesto pledge to raise the threshold at which individuals start paying income tax to £12,500, or raise the £8,060 level where national insurance kicks in. | Personal allowance The chancellor could begin to honour the Conservative manifesto pledge to raise the threshold at which individuals start paying income tax to £12,500, or raise the £8,060 level where national insurance kicks in. |
| Higher rate threshold The manifesto also promised to raise the threshold for the 40p rate to £50,000 by the end of the parliament after a succession of freezes during the coalition years. | Higher rate threshold The manifesto also promised to raise the threshold for the 40p rate to £50,000 by the end of the parliament after a succession of freezes during the coalition years. |
| Fuel duty The car lobby wants a cut in fuel duty to offset inflationary rises in petrol, but a freeze is more likely. | Fuel duty The car lobby wants a cut in fuel duty to offset inflationary rises in petrol, but a freeze is more likely. |
| Insurance premium tax A favourite target of George Osborne, it is a below the radar tax rise on households and could be used again to raise money. | Insurance premium tax A favourite target of George Osborne, it is a below the radar tax rise on households and could be used again to raise money. |
| Air passenger duty A cut is possible to help families hit by dearer holiday costs. | Air passenger duty A cut is possible to help families hit by dearer holiday costs. |
| Pensions cold calling The government’s pension freedoms sparked a stampede by savers to extract cash from their pension pots. Fraudsters sought to exploit this situation by cold calling to sell dodgy vehicles for the money. A ban is on the way. | Pensions cold calling The government’s pension freedoms sparked a stampede by savers to extract cash from their pension pots. Fraudsters sought to exploit this situation by cold calling to sell dodgy vehicles for the money. A ban is on the way. |
| Employee benefits An increase in taxes on employee benefits would be one way to prevent tax “leakage”. At the moment millions of people can swap taxed salary for bike purchases and gym membership. This perk could be scrapped, saving tens of millions of pounds. | Employee benefits An increase in taxes on employee benefits would be one way to prevent tax “leakage”. At the moment millions of people can swap taxed salary for bike purchases and gym membership. This perk could be scrapped, saving tens of millions of pounds. |
| New measures for savers The amount that savers can put aside in ISAs before incurring tax could be raised. | New measures for savers The amount that savers can put aside in ISAs before incurring tax could be raised. |
| Infrastructure | Infrastructure |
| Housebuilding A £5bn homebuilding fund was mooted to deal with Britain’s housing shortage. But the chancellor has put forward a £1.4bn “injection” to support the building of 40,000 homes. | Housebuilding A £5bn homebuilding fund was mooted to deal with Britain’s housing shortage. But the chancellor has put forward a £1.4bn “injection” to support the building of 40,000 homes. |
| Transport A £1.3bn road improvement scheme will aim to tackle bottlenecks and fix potholes. | Transport A £1.3bn road improvement scheme will aim to tackle bottlenecks and fix potholes. |
| Digital A £1bn scheme will push ahead with trials for 5G mobile access and superfast one gigabit broadband. | Digital A £1bn scheme will push ahead with trials for 5G mobile access and superfast one gigabit broadband. |
| Business | Business |
| R&D Theresa May said there would be £2bn extra for science and R&D spending over the next four years – the chancellor will provide details. | R&D Theresa May said there would be £2bn extra for science and R&D spending over the next four years – the chancellor will provide details. |
| Corporation tax The Conservatives want to bring the headline rate down from 20% to 17%, and Theresa May has hinted she wants it lower – but it is already the lowest in the G20 and the chancellor could delay further cuts. | Corporation tax The Conservatives want to bring the headline rate down from 20% to 17%, and Theresa May has hinted she wants it lower – but it is already the lowest in the G20 and the chancellor could delay further cuts. |
| Business rates New rateable values come into effect next April. Businesses, especially those in expensive parts of the south-east, have lobbied for the government to delay implementation. | Business rates New rateable values come into effect next April. Businesses, especially those in expensive parts of the south-east, have lobbied for the government to delay implementation. |
| Bank levy Reductions in the levy scheduled over the next five years could be accelerated as banks consider whether to stay in the UK post Brexit. | Bank levy Reductions in the levy scheduled over the next five years could be accelerated as banks consider whether to stay in the UK post Brexit. |