Autumn Statement 2016 summary and highlights: Everything you need to know

Back to results

 Chancellor Philip Hammond has said his first Autumn Statement"is focused on  preparing and supporting the economy as we begin writing a new chapter in our  country's history". Here's what we know so far:

Opening statements

  • Britain will be the fastest growing major economy this year, says Mr Hammond, quoting the IMF. It has"confounded commentators at home and abroad with its strength and resilience" since the Brexit vote.
  • Tackling the UK economy's"long term weaknesses" is more important than ever, Mr Hammond says, and he promises to build an"economy for everyone"
  • Mr Hammond praises his predecessor George Osborne's record, and says the UK needs to be"match fit" for the challenges of leaving the European Union

Forecasts

  • Growth will be 2.1pc in 2016, higher than forecast in March, Mr Hammond says, and 1.4pc in 2017 - slower than hoped because of lower investment
  • Brexit will knock 2.4 percentage points from UK growth
  • The Government will now no longer seek to deliver a surplus in 2019/2020, but Mr Hammond says he remains committed to seeing the UK's finances return to balance"as soon as possible" in the next Parliament. Mr Osborne had planned it for this Parliamentary term.

Credit: Toby Melville

Borrowing

  • 2016/17: £68.2bn; 2017/18: £59bn; 2018/19: £46.5bn, 2019/20: £29.8bn, 2020/21: £20.7bn, 2021/22: £17.2bn
  • Public borrowing will drop from 4pc last year to 3.5pc this year and will continue to fall over Parliament reaching 0.7pc - the lowest in two decades
  • Mr Hammond says John McDonnell, the shadow chancellor, has outperformed Ed Balls in the"fiscal incontinence sweepstake"

Productivity

  • Mr Hammond says raising productivity is essential: he will to prioritise"high value investment" to improve productivity
  • Announces a new national productivity investment fund of £23bn for"innovation and infrastructure" over the next five years, aimed at science and tech development

Housing

  • The goal of home ownership remains out of reach for"too many", Hammond says
  • A Housing White Paper will be published"in due course" Mr Hammond says. He confirms the £2.3bn housing infrastructure fund reported yesterday to open up sites for housing
  • Promises 40,000 affordable homes, and will relax restrictions on Government grants to help building
  • Right-to-buy for housing association tenants
  • The Government will double capital housing on spending in real terms over the course of the Parliament, Mr Hammond says

£1.4 billion for affordable housing is good news for Generation Rent, but more needed long term, says our Chief Economist John Hawksworth

— PwC UK (@PwC_UK) November 23, 2016

Infrastructure and transport

  • £1.1bn in English local transport networks, £220m for national roads and £390m for development of low emission vehicles
  • The Northern Powerhouse rail - more details in the coming weeks
  • My ambitions is for the UK to be a world leader on 5G, Mr Hammond says. There will be 100pc business rates relief for five years on new fibre infrastructure
  • More money for the Northern Ireland Executive, the Welsh Government and the Scottish Government to fund infrastructure, made through the Barnet formula
  • Mr Hammond says the Government's Industrial Strategy will be a"firm foundation"

Business

  • Doubling UK export finance capacity
  • Funding initiative to boost management skills
  • £400m for venture capital funds to unlock £1bn of finance for start-ups, to stop them being swallowed up by the big firms
  • Treasury-led review into accessing capital in the UK

#AutumnStatement : Chancellor Philip Hammond announces a further £102m of Libor bank fines to charities https://t.co/2xwPZZdH3Zpic.twitter.com/EdbvkYtBFC

— The Telegraph (@Telegraph) November 23, 2016

Regional cities

  • Major road schemes in the north confirmed
  • £1.8bn from Local Growth Fund for English regions
  • "Devolution remains at the heart of this Government's commitment to local growth," Mr Hammond says, confirming a new City Deal for Sterling

Heard it here first - Government to step in to save Wentworth Woodhouse - by @brushingbootshttps://t.co/p84eavlDU3

— Telegraph Property (@TeleProperty) November 23, 2016

Deficit and spending

  • We have more work to do, Mr Hammond says - departmental spending plans will remain in place, although there will be extra funding for the Ministry of Justice to tackle problems in prisons
  • "I want the Treasury to be an enabler for good spending across Government," Mr Hammond says
  • Despite the fiscal pressure we will meet our commitments to meet the budgets of defense, overseas aid and for pensioners, Mr Hammond says

Heard it here first - Government to step in to save Wentworth Woodhouse - by @brushingbootshttps://t.co/p84eavlDU3

— Telegraph Property (@TeleProperty) November 23, 2016

Tax

  • My priority as chancellor is to ensure Britain remains the number one destination for business, Mr Hammond says
  • Corporation tax will fall to 17pc, the lowest rate of corporation tax in the G20
  • Business rates reduction package confirmed - transitional relief cap lowered, which Mr Hammond says"is complicated but good news". He adds that he will increase of rural rate relief to 100pc giving small businesses in rural areas a tax break
  • Insurance premium tax to go up from 10 to 12pc next June
  • Mr Hammond Ultra low emission cars, childcare and cycle to work scheme will be excluded from new plans to scrap employee tax breaks
  • The Chancellor promises to crack down on tax avoidance."We must constantly be alert to new threats to our tax base," he says
  • New tax measures will raise around £2bn over the forecast period
  • Mr Hammond says the Government will raise point at which people start to pay tax to £12,500 and the point at which they pay the higher rate to £50k by 2020

 

This article was written by Rhiannon Bury from The Daily Telegraph and was legally licensed through the NewsCred publisher network.