George Osbourne, Chancellor of the Exchequer announced the Autumn Statement and Spending Review for 2015 today, outlining the plan for government spending over the next 4 years. Here is a summary of the key points:
Tax
- Each individual and small business to have their own digital tax account by 2020.
- Planned cuts to tax credits have been abandoned completely – taper and threshold rates for working tax credits and child tax credits will remain the same.
- There will be an extension of small business rate relief scheme for another year. The support for aerospace and automotive industries is confirmed for the next decade at current level.
- From 2019, Capital Gains Tax to be payable within 30 days of completion.
Apprenticeships
- There will be an increase per place in funding and an aim to see 3 million apprentices, part funded by a levy on larger businesses from April 2017.
- New Apprenticeship Levy will be introduced at 0.5% on the wage bills of large employers, with a £15,000 allowance to offset the levy for all firms taking part.
Enterprise Zones
- Creation of 26 new or extended Enterprise Zones – including Ipswich.
Business Rates
- Uniform business rates will be abolished.
Pensions
- State pensions will rise by more than £3 to £119.30 a week from next April. This increase is the largest increase in the past five years and with all the increases over the last five years combined, pensioners are £1125 a year better off.
- However, the state pension age will also rise allowing the triple lock on pensions to be maintained.
Savings
- Savings credit to be frozen at current level
Housing
- A new 3% surcharge on stamp duty for buy-to-let properties and second homes will be brought in from April 2016.
- Restrictions on shared ownership are to be removed and the planning system reformed.
- London Help to Buy scheme to offer interest-free loan worth up to 40% of the value of a newly built home.
Motor Insurance
- Reforms to compensation culture to cut cost of motor insurance, which could save motorists £40 to £50 a year.
Childcare
- From 2017, free 30 hours of childcare for 3-4 year olds to be available only to parents working more than 16 hours and with incomes of less than £100,000.
To read the Autumn Statement and Spending Review in full, click here.
