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The Autumn Statement â the main points

The Chancellor of the Exchequer George Osborne has updated MPs on the state of the economy and the government's future plans in his Autumn Statement. Here are the key points:

  • Fuel duty escalator "scrapped". Planned 3p a litre rise due in January is cancelled.
  • Income tax threshold increased by £235 in 2013. Means no tax paid on earnings under £9,440.
  • This Government will collect £7bn more in tax than the last Government to tackle "evasion" and loopholes. More resources (£77m) to ensure multinational firms "pay their fair share" and avoidance is reduced.
  • Threshold for 40% rate of income tax to rise by 1% in 2014 and 2015 from £41,450 to £41,865 and then £42,285.
  • Capital Gains Tax annual exempt amount 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.
  • Corporation Tax rate cut by further 1% from April 2014.
  • The Bank Levy Rate will be increased to 0.130% next year.
  • The Government has delivered £12bn in Whitehall spending cuts. More are on the way. Government department resource budgets reduced by 1% next year with schools and hospitals protected.
  • £1bn to expand good schools and build more.
  • £600m more on scientific research infrastructure
  • National pay arrangement in NHS and prison service to continue, and no changes to civil service arrangements, but greater freedom for schools to set pay in line with performance.
  • £1bn more for road improvements - upgrading A1, A30, and M25. Funding guarantee for extension to Northern Line tube.
  • Most working age benefits, including Jobseeker's Allowance, will rise by 1% in each of the next three years. Changes to welfare "save £3.7bn by 2015/16". Child benefit to rise by 1% for two years from April 2014.
  • ISA limit raised to £11,520 and basic state pension to rise 2.5% from April. Public sector workers to see average 1% rise in earnings.
  • No new homes tax. From 2014/15 the pension lifetime pot relief will fall from £1.5m to £1.25m; annual allowance down from £50,000 to £40,000. This affects top 2% of pension pots.
  • The deficit has fallen by a quarter in "just two years". Forecast to fall this year to 6.9% of GDP. Borrowing forecast for 2012/13 is therefore £108bn. It will take one extra year to reach his debt target.
  • Office for Budget Responsibility now forecasts GDP growth -0.1% in 2012, blaming Eurozone crisis. Sees growth of 1.2% in 2013, 2% in 2014 and 2.3% in 2015. OBR expects jobless rate to peak at 8.3% (currently 7.9%).
  • HMRC says that the Annual Investment Allowance will be increased from £25,000 to £250,000 for a two year period from 1 January 2013 to support small and medium enterprises.

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