Your at-a-glance guide to the main headlines from chancellor George Osborne’s autumn statement.

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The main points from the autumn statement presented to the House of Commons by Chancellor George Osborne, split into different categories.

You can leave your thoughts and comments on the autumn statement at the bottom of this story.

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 1.2pc in 2013, 2pc in 2014, 2.3pc in 2015, 2.7pc in 2016, and 2.8pc in 2017.

• Unemployment predicted by OBR to peak at 8.3pc with employment rising every year.

• The deficit is forecast to fall from 7.9pc last year to 6.9pc this year, then 6.1pc, 5.2pc, 4.2pc and 2.6pc, reaching 1.6pc 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 1pc next year and 2pc in 2014, with NHS and schools exempted. Local government budgets to be cut by 2pc 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 1pc 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 1pc to 21pc in April 2014.

• The bank levy rate will be increased to 0.13pc 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 40pc rate of income tax is to rise by 1pc 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 1pc for the next three years.

• Child benefit is to rise by 1pc for two years from April 2014.

PENSIONS

• The basic state pension is to rise by 2.5pc 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.

12 comments

  • Well said BG fair and honest appraisal Britain will come out of this hole left by that grating CITY supporter.We are a can do working people and we will get through this for our children's stake in the future.Ignore the whingers and trolls in this city.

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    PaulH

    Wednesday, December 5, 2012

  • welcome to inflation for the next ten years, something BG is really proud of, he's got it all made, well or daddy did it for him. Why was Osborne so cheerful and up beat, feeling good, he must have fallen over a line of sorts. Our bankers and currency dealers also felt good about running the economy down, its like an epidemic.

    Report this comment

    ingo wagenknecht

    Wednesday, December 5, 2012

  • Will the last person to leave this dump, please turn the lights off, or perhaps blow the candles out.

    Report this comment

    Catton Man

    Wednesday, December 5, 2012

  • George Osborne says Britain is on the right track. What he didn't tell us was that it's a slow moving train, with expensive tickets and uncomfortable conditions for those travelling third class.This is cattle-truck Britain.

    Report this comment

    Peter Watson

    Wednesday, December 5, 2012

  • There really no way out of this mess, I expect this austerity will carry on way past 2025, Osborne and Cameron will be nothing more than a distant memory and we will have another bunch of plonkers in their place.

    Report this comment

    Catton Man

    Wednesday, December 5, 2012

  • Come the 2013 Budget I bet VAT will be increased again to make up for it all.

    Report this comment

    chebram71

    Wednesday, December 5, 2012

  • A good result. Fuel tax binned and personal tax allowance up. Certain benefits only to increase by 1% but taking into account that all benefits increased from April 2012 by 5.2% overall this balances things out and seems quite fair. A 5.2% rise was a lot more than many people got in their pay packet this year.

    Report this comment

    BG

    Wednesday, December 5, 2012

  • £105bn more borrowing compared to last year if you take out the one-off factors like Royal Mail sell off. Austerity has failed!

    Report this comment

    Jeffrey Osborne

    Wednesday, December 5, 2012

  • Reducing corporation tax because people weren't paying it in the first place? What strange logic! And to simply clamp down on tax avoidance isn't making them pay more - only in theory.

    Report this comment

    Jeffrey Osborne

    Wednesday, December 5, 2012

  • Will the last person to leave this dump, please turn the lights off, or perhaps blow the candles out.

    Report this comment

    Catton Man

    Wednesday, December 5, 2012

  • @ I've got all my own teeth. - Undoubtedly you are right. The same plonkers who caused all this mess will probably be back in power.

    Report this comment

    BG

    Wednesday, December 5, 2012

  • Permanent austerity,another new normal.- Whatever happened to the warmongering one eyed jock who made it all possible for this happen???? google THE INTERNATIONAL CENTRE FOR FINANCIAL REGULATION

    Report this comment

    nrg

    Wednesday, December 5, 2012

The views expressed in the above comments do not necessarily reflect the views of this site

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