Autumn Statement at a glance
Hard-pressed drivers were given some respite as Osborne scrapped the fuel duty rise
Wednesday 05 December 2012
Chancellor George Osborne rose at 12.35pm to deliver his 2012 Autumn Statement. Here are the key points:
* 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.
* 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.
The Chancellor sat down at 1.21pm.
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