Autumn Statement: The Chancellor’s key measures

AN at-a-glace guide to the main announcements in Chancellor George Osborne’s Autumn Statement.


:: 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.

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:: 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.


:: 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.


:: 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.


:: 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.


:: 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.


:: The planned 3p-per-litre planned rise in fuel duty has been cancelled.

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