Autumn Statement 2012: At a glance

7 December 2012

Chancellor George Osborne delivered his Autumn Statement on Wednesday. Read our summary of the key announcements.


  • GDP will shrink by 0.1% in the current year, down from March's prediction of 0.8%.
  • The economy is expected to grow by 1.2% next year, 2% in 2014 and 2.3% in 2015.
  • The economy has done better than expected in job creation, with unemployment expected to peak at 8%.




  • Annual infrastructure investment is now £33 billion.
  • An extra £1 billion will be spent to expand and build 100 new free schools and academies has been laid aside.
  • £1 billion will be spent on roads, including upgrading the M25.
  • There will be plans laid out to extend HS2 to the North East.
  • 120,000 new homes will be built and there will be greater investment into flood defences.
  • £600 million will be invested in scientific research.
  • Ultra-fast broadband will be expanded to 12 cities.


  • The main rate of corporation tax will be cut by a further 1% to 21%.
  • The bank levy rate will be increased to 0.13%
  • The basic income tax threshold will rise by a further £235 on top of the planned increase to £9,440.
  • The threshold for 40% rate of income tax to rise by 1% in 2014 and 2015, from £41,450 to £41,865 and then £42,285.
  • The government will consult on tax cuts for shale gas exploration.
  • Small business rate relief extended by one year to April 2014.
  • There will be no new tax on property.
  • £5 billion will be retrieved over the next six years from undisclosed bank accounts.
  • The government will spend £77 million more to ensure taxes are paid.



  • The basic state pension will rise by 2.5%, in line with inflation.
  • The lifetime pension tax relief for allowance will be reduced from £1.5 million to £1.25 million
  • The annual allowance will be reduced from £50,000 to £40,000.

Overseas aid

  • The promise to spend 0.7% of GDP on overseas aid will be met, but not exceeded.


  • Departmental resource budgets will be cut by 1% this year and 2% next year.

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