Autumn Statement 2012: At a glance

Published by on 07 December 2012.
Last updated on 07 December 2012

Westminster

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

Economy

  • 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%.

Borrowing

Fuel

Infrastructure

  • 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.

Taxes

  • 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.

Benefits

Pensions

  • 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.

Cuts

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

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