The Chancellor's Autumn Statement

Budget Statements can often be lengthy and packed full of information. So to find out the key measures in the budget statement, and how it might affect you, take a look at the key points announced, summarised below;

 

ECONOMY: 

  • Planned £4.4bn in credit cuts to be abandoned - taper and threshold rates for working tax credits and child tax credits remaining the same
  • Government to breach overall welfare cap in first year but £12bn cuts target remains the same.
  • UK is fastest-growing economy, alongside US, since 2010
  • Growth of 2.4% forecast for 2015 - unchanged from June
  • Growth in subsequent years forecast to be 2.4%, 2.5%, 2.4% and 2.3%
  • Budget surplus of £10.1bn to be delivered by 2019-20
  • Borrowing to total £73.5bn this year, falling subsequently to £49.9bn, £24.8bn and £4.6bn in subsequent years
  • Debt to be lower in 2015-16 than 2014-15 and to fall every year after that
  • Total spending to rise from £756bn this year to £821bn by 2019-20
  • State spending to hit 36.5% in five years - down from 45% in 2010.

 

POLICE, SECURITY AND JUSTICE:

  • Holloway women's prison in London to close as part of modernisation of prison estate
  • No real-terms cuts in police budgets
  • Forces expected to make efficiency savings by sharing resources
  • Underused courts to be sold off, raising £700m

 

WELFARE:

  • £12bn in targeted welfare savings to be delivered in full
  • Housing benefit for new social tenants to be capped at same level as private sector
  • Housing benefit and pension credit payments to be stopped for people who leave the country for more than one month
  • Job centres to be co-located in council buildings

 

HEALTH:

  • NHS budget to rise to £120bn from £101bn by 2019-2020
  • NHS expected to make £22bn in efficiency savings
  • Grants for student nurses to be scrapped and replaced by loans
  • Goal of increasing student nurse numbers by 10,000
  • New social care 'precept' in council tax of up to 2% to allow local councils to raise £2bn for social care
  • Better Care Social Fund to be increased by 1.9%
  • Upfront cash injection of £6bn next year
  • NHS in England expected to make £22bn in efficiency savings
  • An extra £600m earmarked for mental health services
  • £15m raised from charging VAT on sanitary products to be given to women's health charities

 

EDUCATION:

  • Schools budget in England protected in real terms
  • New 30-hour free childcare subsidy for parents of three- and four-year-olds to be limited to those working more than 16 hours a week

 

HOUSING:

  • New 3% surcharge on stamp duty for buy-to-let properties and second homes from April 2016, raising about £1bn
  • Restrictions on shared ownership to be removed and planning system reformed to deliver more homes
  • London Help to Buy scheme to offer interest-free loan worth up to 40% of the value of a newly built home
  • Councils to receive an additional £10m to help homeless people

 

DEFENCE:

  • Defence budget to rise from £34bn to £40bn

 

LOCAL GOVERNMENT:

  • Local government to keep revenue from business rates by the end of the Parliament
  • Local government spending, in cash terms, to be same in 2020 as 2015

 

ENERGY/ENVIRONMENT:

  • Environment and Energy departments to see day-to-day spending fall by 15% and 22% respectively
  • Extra £200m funding for flood defence

 

BUSINESS:

  • 26 new enterprise zones to be created
  • Uniform business rates to be abolished.
  • Elected mayors allowed to raise rates under certain conditions
  • Business department funding to be cut by 17%
  • Science budget to rise in real terms to £4.7bn
  • Apprenticeship levy set at 0.5% of employer wage bill, with £15,000 allowance for all firms taking part
  • Every individual and small business to have their own digital tax account by the end of the decade

 

PENSIONS:

 

  • State pension to rise by £3.35 a week to £119.30 next year