At a glance: Autumn Statement and Spending Review
“THE North has grown faster than the South” Chancellor George Osborne proclaimed in his Autumn Statement.
With devolution revolution deals, and 26 more enterprise zones on the cards, Mr Osborne said that the Government’s job was to “rebuild Britain” and implement policies that will help continue to grow the economy, which he said was the best performing in the G7.
He claimed that economic recovery was being felt “in all parts of our nation” as he forecast the economy would grow 2.4% this year and next and then hit 2.5% in 2017.
INFRASTRUCTURE
£61bn road investment programme, biggest since 1970. George Osborne said: “for we are the builders”.
Construction of HS2 to link Northern Powerhouse to South can begin.
Fund for Transport in the North to get it running.
Spending on transport infrastructure will be increased by 50% by end of parliament and Britain now has a “permanent pothole fund”.
DEVOLUTION
Osborne says he wants to “spread economic power and wealth across our nation” and mentioned the agreements with Sheffield, joining Manchester in getting an elected mayor.
£12bn from local growth fund will help in the creation or extension of 26 enterprise zones.
BUSINESS
Abolition of the uniform business rate, with local government keeping revenues, councils have ability to cut rates, mayors can raise rates if they support infrastructure.
Reduction in corporation tax to 18%.
For 600,000 small businesses, the rate relief scheme extended.
ENERGY
Plans to double spending on energy research, emphasis on smaller nuclear plants ,shale gas support for low carbon electricity and renewables to double – “going green should not cost the earth”.
£1bn fund set up for communities affected by fracking.
Permanently exempt energy intensive steel and chemicals from the cost of environmental tariffs.
CULTURE
City of Culture 2023 – Hull will gain financial support.
UK Sport budget will be increased by 29% “so Britain can go for gold at Rio,” said Mr Osborne.
TAXES AND RATES
Osborne announces £800m of spending to fight tax evasion.
Business tax credits taper rate to remain unchanged – Osborne says he will abolish uniform business rate, local government will keep all the revenue by the end of the parliament.
Loans instead of grants for business R&D.
Underused courts will be closed – savings of £700m will be used to speed up process of justice.
EDUCATION
The apprenticeship levy will come into effect in April 2017, at a rate of 0.5% of an employer’s pay bill.
A £15,000 allowance for employers will mean that the levy will only be paid on employers’ pay bills over £3m.
Investment in free childcare – 30 hours of free childcare for 3 to 4 year-olds for parents working more than 16 hours a week and earning less that £100,000 annual income.
HOUSING
Government promises to deliver 400,000 affordable new homes by end of the decade.
Osborne announces plans to extend Right to Buy to housing association tenants, with new pilot scheme starting immediately.
ECONOMY AND PUBLIC SECTOR
£12bn welfare savings delivered “in full”.
1m jobs will be delivered in next five years according to OBR forecasts.
£10.1bn surplus said George Osborne, as Britain comes “out of the red and into the black”.
The NHS budget will rise from £101bn to £120bn by 2020-21, and £22bn of efficiency savings will be made across NHS.
£4trn commitment to public spending in the next 4 years.
HMRC will make savings of 18%, already announced that many local offices will be shut and services digitised.
