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Autumn Statement: George Osborne's Key Points

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ECONOMY
  • Growth forecast for 2012 downgraded by Office for Budget Responsibility (OBR) to minus 0.1%.
  • GDP growth has been downgraded for every year of the forecast period to 1.2% in 2013, 2% in 2014, 2.3% in 2015, 2.7% in 2016, and 2.8% in 2017.
  • Unemployment predicted by OBR to peak at 8.3%, with employment rising every year.
  • The deficit is forecast to fall from 7.9% last year to 6.9% this year, then 6.1%, 5.2%, 4.2%, and 2.6%, reaching 1.6% in 2017/18.
  • Borrowing is forecast to fall from £108 billion this year, to £99 billion, £88 billion, £73 billion and £49 billion in later years, reaching £31 billion in 2017/18.
  • Target of debt falling by 2015/16 is to be missed - this will now happen in 2016/17. The period of austerity has been extended by one year to 2017/18.
CUTS/SPENDING
  • Civil service budgets to be cut by 1% next year and 2% in 2014, with NHS and schools exempted. Local government budgets to be cut by 2% in 2014.
  • Capital investment in infrastructure is to total £5 billion over two years, including £1 billion for roads, upgrading the A1, A30, and M25.
  • The High Speed 2 rail link is to be extended to the North West and to West Yorkshire. In London, the Northern Line of the Underground is to be extended to Battersea.
  • £600 million to be invested in science, £270 million in further education colleges, and £1 billion in schools.
TAX
  • Additional spending of £77 million for HM Revenue and Customs to fight tax avoidance expected to increase money collected by £2 billion a year.
  • There will be no new tax on property.
  • The overall Isa contribution limit is to be uprated to £11,520 from next April.
  • Capital gains tax annual exempt amount is to increase by 1% over the same period, reaching £11,100 and inheritance tax nil-band rate to rise from £325,000 now to £329,000 in 2015/16.
  • There will be consultation on tax incentives for shale gas.
  • The main rate of corporation tax is to be cut by 1% to 21% in April 2014.
  • The bank levy rate will be increased to 0.13% next year.
  • Income tax personal allowance is to increase by £1,335 - £235 more than previously announced - so no tax will be paid on earnings under £9,440.
  • The threshold for 40% rate of income tax is to rise by 1% in 2014 and 2015 from £41,450 to £41,865 and then £42,285.
WELFARE
  • Most working age benefits - including Jobseeker's Allowance, Employment and Support Allowance and Income Support - to be uprated by 1% for the next three years.
  • Child benefit is to rise by 1% for two years from April 2014.
PENSIONS
  • The basic state pension is to rise by 2.5% next year to £110.15 a week.
  • The tax-free allowance for pensions is to be cut from 2014/15 from £1.5 million to £1.25 million over a lifetime. Annual allowance is to be cut from £50,000 to £40,000, saving £1 billion.
FUEL
  • The planned 3p-per-litre planned rise in fuel duty has been cancelled.

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