Chancellor George Osborne is making his Autumn Statement on the Budget today at 12:30 in the House of Commons. Follow along with the latest developments below.
13:24
Osborne concludes his Autumn Statement
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13:20Basic rate income tax allowance will rise to £10,600 next year ( revised up from £10,500). Osborne estimates this will amount to total wage boost for working people of £825 a year.
Osborne confirms that he will scrap the tax on people who pass annuities on to their children.
Stamp duty to be completely reformed with big rise for expensive homes -12% rate for most expensive houses . However, 98% of buyers will see a cut in stamp duty, says Osborne.
The BBC's notes the new stamp duty rates:
- No tax on the first £125,000 paid
- 2% on the portion up to £250,000
- 5% up to £925,000
- 10% up to £1.5 million
- 12% on everything above that
New rates to come into force from midnight tonight and MPs vote on the plans tomorrow.
13:15Tax on people who pass annuities on to their children to be scrapped. A new pensioner bond to be detailed in January and government to enable ISAs to be passed on when people die tax-free.
13.06:Science: UK ranked second in global innovation ranking. £10,000 loans to be made available for students undertaking postgraduate science and engineering courses. Focus on "Northern powerhouse", with fresh investments in R&D, innovation and transport initiatives in northern England.
Sovereign Wealth Fund for the North to be set up, with funds from shale gas proceeds.
13:02Osborne promises to crack down on tax avoidance, including by banks. Plans for25% tax on profits companies who siphon profits offshore could raise £1bn over five years.Non-dom charges will be raised for people who have been in the UK for more than 12 years
Air passenger duty for children under 12 will be abolished from May next year. From the following year it will abolished for children under 16.
Fuel duty to remain frozen.
13:00
The military pullout from Afghanistan will save £200m this year.
12:55
Spending will be £10bn less this year than in his original spending plans, says Osborne, with some of the underspend to be directed at NHS (£2bn). Borrowing forecast raised to £91.3bn.
12:50Osborne insists borrowing is falling. He forecasts it to£91.3bn this year, down from £97.5bn forecast.Following further annual falls going forwards, Osborneforecasts a surplus of £4bn in 2018-19. In 2019-20 there will be a surplus of £23bn.
Admits tax receipts are lower than expected but then so are interest payments.
12:47OBR has revised down its inflation forecast to1.5% this year, 1.2% next year and 1.7% the year after
12:45Office of Budget Responsibility has revised down its forecast for global growth this year; UK growth forecast raised to 3% up from 2.7%
12:40
Osborne warns "warnings lights flashing global economy". Highlights in particular the danger eurozone stagnation presents to the UK
12:38Osborne hails higher growth, falling unemployment and inflation. Deficit is being cut. "The choice is whether to stay the course, or squander this."
12:35:Chancellor George Osborne begins Autumn Statement, notes UK is fastest growing developed economy
12:22:Review of business rates to help high street retailers likely to be announced in the Statement, says BBC.
12:20Prime Minister's Questions: David Cameron criticised by Opposition MPs for failing to achieve targets for borrowing
12:10The BBC notes that Shadow chancellor Ed Balls has released a taster of Labour's line on the Autumn Statement, saying that if he were at the dispatch box he'd be setting out a plan "to deliver a recovery that works for the many and not just a few". Labour's response to the Statement is expected to include plans for raising the minimum wage, investing in house-building and expand free childcare.
12:00Michael Hewson, chief market analyst for online trading firm CMC, reckons anyone expecting anything noteworthy will likely be disappointed, with any eye-catching measures likely to be kept back for the budget in March next year (which comes just weeks before the May election). Hewson adds: "The fact is the Chancellor is already well off course with his borrowing target for this year, which severely limits his room for manoeuvre, and he will no doubt be hoping that the tax deadline in January provides him with a nice windfall, narrowing the miss."
Hewson says industry will be hoping for some measures to help with the costs of doing business. Food retailers in particular, given the terrible year they are having, will be hoping next year's business rates revaluation on commercial property, which is due in April, doesn't drive their costs even higher.
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