George Osborne delivered his Autumn Statement on 5th December 2013, this provided an update on the economy and an announcement of any changes to his current fiscal policy.
Here are the key points:
Economy
- Brighter economy than a year ago
- Forecast jobless rate at 7.6% in 2013, falling to 7% in 2015
- Britain currently growing faster than any other major world economy
- GDP growth forecast for 2013 up from 0.6% to 1.4%
- Expects national debt to be 75.5% of GDP this year £18bn lower than forecast
Tax
- £1,000 transferable tax allowance for married couples from April
- Capital Gains Tax to be paid by foreign sellers of UK homes from April
- Levy on bank balance sheets to rise to 0.156% to raise £2.7bn in 2014/15
- Employer National Insurance contributions removed for workers under 21
Pensions
- State pension age to be raised to 68 by mid 2030s and 69 in late 2040s
- State Pension to rise by £2.95 in April
- Pensioners to be offered the opportunity to make voluntary national insurance contributions to boost retirement income
Transport
- Plans to increase train fares by 1% above inflation from January are cancelled and will be replaced by an increase in line with inflation
- Fuel Duty rise cancelled for next year
Energy
- Green levies in energy bills to be reduced by an average of £50 per household
Housing
- Forecast for house prices to be 3.1% lower in 2018 than 2007 peak
- Bank of England has power to take action to ensure a functioning, stable housing market
Education
- 18-21 year olds without basic maths and english will be required to undertake training in these subjects or lose their benefits
- Free school meals for children in reception year one and year two
Business
- The small business rate relief scheme will be extended for one year from April 2014
- Inflation increase in business rates will be capped at 2% from April 2014
- New reoccupation relief will encourage the use of vacant town centre shops
