George Osborne’s third economic statement of 2015 (and the fourth within 365 days) lacked the big surprises and headline grabbing announcements we’ve recently come to expect from these occasions.
In a combined Spending Review and Autumn Statement, changes to government departmental budgets dominated the Chancellor’s speech. Day-to-day spending of government departments will fall by an average of 0.8% a year in real terms. The transport (37%), energy (22%) and business (17%) departments are facing the largest cuts.
The core administration budget for culture, media and sport will fall by 20% but there will be increased funding for the Arts Council and sport. NHS spending in England will increase from £101 billion in 2015/16 to £120 billion by 2020/21, including £6 billion next year. It is also expected to make £22 billion in efficiency savings in the next 5 years. The economic news was largely positive. The combined effect of better tax receipts and lower debt interest has resulted in a £27 billion improvement in public finances compared to July. The government will borrow £8 billion less than forecast and aims to have a budget surplus of £10.1 billion by 2020. GDP is forecast to grow by 2.4% this year and has been revised up from July to 2.4% in 2016 and 2.5% in 2017.
Apart from the economic update, the Chancellor did announce some measures that will affect businesses and individuals. The following report summarises the announcements made by Chancellor George Osborne during the 2015 Autumn Statement on Wednesday 25 November 2015.
The way in which tax charges (or tax relief, as appropriate) are applied depends upon individual circumstances and may be subject to change in the future. The information in this report is based upon our understanding of the Chancellor’s 2015 Autumn Statement, in respect of which specific implementation details may change when the final legislation and supporting documentation are published. This document is solely for information purposes and nothing in this document is intended to constitute advice or a recommendation. You should not make any investment decisions based upon its content. ISA and pensions eligibility depend on personal circumstances. The value of investments can fall as well as rise and you may not get back the full amount you originally invested. Whilst considerable care has been taken to ensure that the information contained within this document is accurate and up-to-date, no warranty is given as to the accuracy or completeness of any information. All tax tables include numbers, rates and allowances only. None of the usual qualifying notes are included in this report.
To read the full report, click this link.
For information about how any changes may affect you or your business, please call Thomas Pottinger or Amanda Williams at Porter Garland Chartered Accountants on 01276 674870.