Chancellor Philip Hammond presents the Autumn Statement today, the first since Britain voted to leave the EU.
This Autumn’s statement was always going to be a relatively sober affair, a direct after effect of this Summer’s Brexit party. The biggest surprise was arguably the abolishment of the Autumn Statement itself: Autumn will now be the time that the UK’s Chancellor will announce future budgets, while Spring’s event will now just be a statement. Corporation Tax cuts were also widely rumoured. These failed to materialize.
Key-points of Autumn Statement 2016
- GDP will take a hit, while public sector borrowing will rise from here to 2021
- The Treasury expects net debt / GDP to peak at over 90% by 2018
- There will be £23bn worth of new infrastructure projects to help stimulate the economy
- Increase in Living Wage to £7.50 from £7.20
- £1.4 billion more will be made available for affordable housing
- Letting Agent fees will be abolished on rental instructions
- Corporation Tax will remain on the previous tax plan, falling to 17% to 2020.
- Personal Tax-free allowance upped by £1k to £12,500.
- Freeze on Fuel Duty
Sterling is higher against most currencies, with the notable exception of the US Dollar, which was heavily bid after Durable Goods data came in much higher than expected.
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