Autumn Statement: At a glance

IN the first major economic statement since the Brexit vote Chancellor Philip Hammond underlined a need to prepare the economy to be “match-fit” for the transition that will follow the EU vote.

The state of the economy

Office for Budget Responsibility growth forecast upgraded to 2.1% from 2.0% in 2016, then downgraded to 1.4% from 2.2% in 2017 due to a fall in the value of sterling.

OBR forecasts growth of 1.7% in 2018, 2.1% in 2019 and 2020 and 2% in 2021
Government no longer seeking a budget surplus in 2019-20

Public borrowing/deficit/spending

Debt will rise from 84.2% of GDP last year to 87.3% this year, peaking at 90.2% in 2017-18

OBR forecasts borrowing of £68.2bn this year, then £59bn in 2017-18
£23bn to be spent on innovation and infrastructure over five years
£2bn per year by 2020 for research and development funding

Taxation/Pay

Tax-free personal allowance will rise to £12,500 by the end of the Parliament

Higher rate income tax threshold to rise to £50,000

National living wage to rise from £7.20 per hour to £7.50 next April – a pay rise of more than £500 per year for a full time worker

Insurance premium tax to rise from 10% to 12% next June.

Welfare

No plans for further welfare savings

Fuel

Cancelled fuel duty rise for seventh successive year, a tax cut worth £850m and the longest fuel duty freeze in 40 years

Housing

£2.3bn housing infrastructure fund for up to 100,000 new homes

£3bn homebuilder’s fund for 200,000 new homes and £2bn to build on public sector land

£1.4bn to deliver 40,000 additional affordable homes

Business

Mr Hammond outlined commitment to ensure Britain remains “Number one destination” for business.

Doubling UK export finance capacity to help exporters

£400m venture capital fund to unlock £1bn for growing firms

Corporation tax will fall to 17% as planned

Increase rural rate relief to 100%

New national productivity investment fund of £23bn over five years

Infrastructure/transport/regions

£1.1bn extra investment for local transport networks

£1.8bn from Local Growth Fund to English regions