George Osborne, the government’s Chancellor of the
Exchequer has given his annual Autumn Statement to parliament which sets
out financial plans based on the most up-to-date forecasts from the
Office for Budget Responsibility (OBR). It highlights the UK’s taxation and public spending plans for the coming year. This is the last before the general election.
AUTUMN
STATEMENT 2014 SUMMARY:
Borrowing Forecasts:
·
2014-15 - £91.3bn
·
2015-16 - £75.9bn
·
2016-17 - £40.9bn
·
2017-18 - £14.5bn
·
2018-19 – Surplus of £4bn
Economic Forecasts
·
Unemployment decreased to 5.4% in 2015
·
Inflation to be 1.5% in 2014 and may fall to
1.2% in 2015.
·
Debt forecast to peak 81.1% of GDP in 2015
Transport Updates
·
Air Passenger Duty (APD) to be abolished for
under 12 year olds
·
For 16 year olds from 2016
·
Fuel duty to remain frozen
New Stamp Duty
Changes (as of midnight, 4th December)
For the first £125,000 no tax will be paid.
Tax & Savings
·
25% tax on profits made by multinationals in the
UK which is diverted offshore.
·
Tax abolished on annuity pension payments made
to spouses after their partner has died.
·
ISAs to be transferred to partners tax-free.
Business
·
Small Business Rate Relief doubled for another
year.
· Funding for Lending (FLS) has been extended for another year.
·
Research & Development (R&D) tax credits
for businesses increased.
·
New tax allowance for North Sea oil exploration.
Health
·
Extra £2bn for frontline NHS services
·
£1.2bn investment for GPs
·
Employment Allowance extended to carers.
Growth Forecasts
·
2014 – 3.0%
·
2015 – 2.4%
·
2016 – 2.2%
·
2017 – 2.4%
·
2018 – 2.3%
·
2019 – 2.3%
Live Updates from 3 December 2014 (GMT)
13:27 - 50min speech now over, questions await.
13:24 - Stamp duty will be completely reformed- Stamp duty will be completely reformed.
13:21 - The tax-free Personal Allowance rise instead to £10,600.
13:19 - Currently, when someone dies, ISA will lose its tax-free status - now this can be passed on tax-free.
13:18 - UK on track to meet welfare cap commitment.
13:17 - Hospices to be refunded VAT.
13:16 - Death Tax abolished, pass on pensions to loved ones tax-free.
13:14 - Post-graduate students will now be able to apply for student loans. They
will be able to borrow up to £10,000 to fund their post-graduate
studies - nothing for Undergraduates.
13:12 - Build a Northern Powerhouse (transport systems)
13:11 - UK ranked 2nd for global innovation.
13:10 - UK apparently raising financial ambitions.
13:08 - Fall in global oil price has helped the UK.
13:07 - Reducing Air Passenger Duty (APD) for children under 12 on budget flights, and then under 16s in the next few years.
13:06 - Fuel duty cut and will remain so.
13:05 - Funding for Lending Scheme extended by a further year
13:05 - the amount of profit in established banks that can be offset by losses
carried forward will be limited to 50%, and relief on bad debts delayed.
13:04 - "We are in this together"
13:04 - 25% "Google" tax on profits for multinationals that shift profits offshore, named: diverted profit tax.
13:03 - Extra £2bn to NHS and £1.2bn investment to GPs.
13:02 - Banks to contribute more in tax
13:02 - UK's budget deficit halved since 2010
13:00 - "Total welfare spending to be £1bn a year lower than forecast at
the Budget. Universal Credit work allowances will be frozen for a
further year...
unemployment benefits will stop for migrants with no prospect of work"
12:58 - Tax avoiding schemes to raise £5bn
12:57 - "Cannot have a strong NHS without a strong economy"
12:55 - Share of GDP/ national income at deficit of 5% - higher than France and Italy
12:50 - Government borrowing forecast is £91.3bn this year and £75.9
billion in 2015.
12:48 - UK 4bn surplus in 2018-19
12:46 - OBR expects above inflation rises in wages over the next 5 years
12:45 - Unemployment forecast to fall to 5.4% next year
12:43 - Employment over 500,000 new jobs have been created
12:42 -
UK growth forecast raised to 3.0% for 2014
12:42 - UK economy expects 3% growth
12:41 - UK growth isn't very high due to apparent slow growth of other global markets
11:29 - Chancellor leaves the Treasury to deliver the Autumn Statement
10:46 - PMI Service Employment Index from January 1997 - January 2013
Related Links:
GOV.UK - Statement 2014
BBC Updates
Pensions
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