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Key points of 2014 Autumn Statement: At-a-glance

04-12-2014

2014-12-04

Chancellor George Osborne has updated MPs about the state of the economy in his last Autumn Statement before the general election. Here are the main points in his 50-minute speech:

State of the Economy

  • UK fastest growing economy in the G7
  • 3% growth forecast in 2014, up from 2.7% predicted in March
  • 2.4% growth forecast in 2015, followed by 2.2%, 2.4%, 2.3% and 2.3% in the following four years
  • 500,000 new jobs created this year. 85% of new jobs full-time
  • Unemployment set to fall to 5.4% in 2015
  • Inflation predicted to be 1.5% in 2014, falling to 1.2% in 2015

Stamp Duty

  • Reform of residential property stamp duty so that rates apply only to that part of the property price that falls within each band

  • 0% paid for the first £125,000 then 2% on the portion up to £250,000

  • 5% up to £925,000, then 10% up to £1.5m; 12% on anything above that, saving £4,500 on average priced home

  • Changes to come into effect at midnight on Thursday, 4 December

Public borrowing/deficit

  • Deficit 'cut in half' since 2010

  • Borrowing set to fall from £97.5bn in 2013-14 to £91.3bn in 2014-15.

  • Deficit projected to fall to £75.9bn in 2015-6, £40.9bn in 2016-7, £14.5bn in 2017-8 before reaching a £4bn surplus in 2018-9

  • By 2019-20 Britain will have a surplus of £23bn

  • Debt as a share of GDP to rise from 80.4% this year to 81.1% next year before falling in every year. reaching 72.8% in 2019-20

  • World War One debt to be repaid

  • Tax receipts up to 2017-18 to be £23bn lower than forecast

Energy and fuel

  • Fuel duty to be frozen

  • Sovereign wealth fund for north of England to keep benefits of shale gas exploration

  • Immediate reduction in oil industry supplementary charge from 32% to 30%

Savings and pensions

  • Spouses will be able to inherit their partners' ISAs tax free upon their death

  • ISA threshold increases from £15,000 to £15,240 next April

  • Tax free annuities for dependents of people who die under 75

  • Commitment to complete public service pension reforms, saving £1.3bn a year

Personal and business taxation

  • Air Passenger Duty to be scrapped for under-12s from 1 May next year and for under-16s the following year

  • Personal tax allowance to increase to £10,600 next April

  • Inheritance tax to be cut for families of aid workers who die in course of their work

  • 55% death tax passed on to loved ones abolished

  • Libor fines to support Gurkhas and other service veterans and their families

  • Higher rate income tax threshold to rise to £42,385 next year

  • VAT paid by hospices and search and rescue organisations to be refunded

  • Introduce 25% tax on profits generated by multi-nationals that are shifted out of the UK, set to raise £1bn over five years

  • Bank profits which can be offset by losses for tax purposes to be limited to 50%

  • New £90,000 charge for non-doms resident in the UK for 17 of the past 20 years

  • Inflation-linked increase in business rates capped at 2%

Welfare

  • Welfare spending to be £1bn lower than forecast in March

  • Two year freeze in working-age benefits (first announced in October)

  • Migrants to lose unemployment benefits if they have "no prospect" of work after six weeks

Health and education

  • £2bn extra every year until 2020 for the NHS

  • GP services to get £1.2bn in extra funds from bank foreign exchange manipulation fines

  • £10,000 loans for postgraduate students studying for masters degrees

  • Employment Allowance worth £2,000 extended to carers

Business and science

  • Business rates to be reviewed

  • Theatre tax break extended to orchestras and new tax credit for children's TV producers

  • Research and development tax credit increased for small and medium-sized (SMEs) firms

  • Support extended to small businesses with £500m of bank lending plus £400m government-backed venture capital funds which invest in SMEs

  • £45m package of support for exporters

  • Expand tax relief on business investment in flood defences

  • Britain awarded the lead role in the international effort to explore Mars

  • National Insurance on young apprentices abolished

Scotland, Wales and Northern Ireland

  • Agreement reached on full devolution of business rates to Welsh Government

  • Corporation tax devolved to Northern Ireland if the Stormont executive can manage the "financial implications"

  • Income tax to be devolved in full to Scottish Parliament

Housing/infrastructure/transport/culture

  • £2bn for flood defence schemes in England

  • Tendering for Northern Rail and Trans-Pennine Express franchises to replace pacer carriages with modern trains

  • A £78m theatre and arts venue is to be built on the former site of Granada's TV studios in Manchester

  • £15bn for 84 roads projects in England by 2021

Full autumn statement documents

Source: http://www.bbc.com/news/uk-politics-30307528

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