On Wednesday afternoon Phillip Hammond revealed his first Autumn statement as Chancellor, which has providing the first comprehensive view of the priorities of the Theresa May government.
Here are some key points to take away from the announcement:
The Deficit
Government finances forecast to be £122 billion worse off in the period until 2021 than forecast in the previous budget, as Brexit begins to weigh upon the country’s purse.
The State of The Economy
- OBR growth forecast revised to 2.1% in 2016 – from the previously anticipated 2.0% – then downgraded to 1.4% in 2017, as opposed to initial forecasts of 2.2%.
- The forecast was heavily criticized by conservatives favouring Brexit, with Ian Duncan Smith dismissing OBR forecast as “another utter doom and gloom scenario”.
Former Labour leader, Ed Miliband tweeted about the matter:
Now Brexiteers attack OBR. They can’t win argument for hard, destructive Brexit based on truth so have to try and win based on fantasy.
— Ed Miliband (@Ed_Miliband) November 23, 2016
- Rise in Minimum Wage to £7.20 an hour to £7.50 from April next year, however this is slightly less than the recommended amount by the Low Pay Commission in order to reach targets.
Taxation
- Income tax threshold to rise to £11,500 by April, from £11,000 as of currently.
Addressing the Housing Crisis
- £2.3 billion to be dedicated to tackling housing shortages across the country and developing infrastructure, envisaged to help deliver 100,000 new homes.
- the banning of letting agent fees, which caused shares in various leading estate agents across the UK to plunge.
Welfare
- no further cuts to be implemented to welfare were announced, as Theresa May and her conservative peers are keen to shed the image of being the “nasty party”.
Stimulating Innovation
- £23 billion to be spent on innovation and infrastructure over the next five years. This was particularly emphasised as a key driver of UK’s success following Brexit – with an allocated investment of £2 billion per year by 2020.
Business
- The intention to double the UK’s Export Finance capacity to make it easier for British businesses to export internationally.
- £400 million into venture capital funds to deliver £1 billion financing for expanding businesses.
Mr Hammond tweeted the following, after the delivery of his heavily anticipated first Autumn statement:
My #AutumnStatement today is focused on preparing & supporting the economy as we begin writing a new chapter in our country’s history
— Philip Hammond (@PHammondMP) November 23, 2016
For a more detailed overview of the budget proposal, find the government summary here.