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The Autumn Statement- what does it mean for me?


Today, at 12:30, Chancellor of the Exchequer George Osborne delivered his Autumn Statement. He presented us with the growth and borrowing forecasts, as well as new policies and measures that will be felt throughout the country. Here at we live tweeted the whole thing, and below we have covered some of the main points, and how they may affect you and your family.


Growth forecasts for 2014 are up from March to 3%. This means economic growth this year was higher than expected, which is good for the economy.
The Chancellor believes the economy will then grow by 2.4% next year, 2.2% in 2016, 2.4% in 2017 and 2.3% in 2018 and 2019. Inflation is predicted to be 1.5% this year, 1.2% next, and 1.7% the year after. Only in 2018 will the Bank of England hit its overall target of 2% inflation.

The Deficit

The Chancellor announced that the deficit will fall from £97.5bn in 2013-14 to £91.3bn this year. He also claimed it would then fall to £75.9bn, £40.9bn, and £14.5bn in the three years after that.

Stamp Duty

This was the biggest, and possibly most well received, change by George Osborne in the Autumn Statement. From midnight tonight, the current system, where the amount owed jumps at certain price levels, would be replaced by a graduated rate, working in a similar way to income tax. Experts have called this “The Tories version of the Mansion Tax”.
Under the new rules, no tax will be paid on the first £125,000 of a property, followed by 2% on the portion up to £250,000, 5% on the portion between £250,000 and £925,000, 10% on the next part up to £1.5 million and 12% on everything over that.


The NHS has been given an extra £2 billion funding, £1.3bn from departmental savings and £700k from the existing health budget.


People studying post-graduate degrees (also known as masters degrees) will be able to apply for a student loan from the government to the value of £10,000. Students currently have to fund study themselves with sponsorship or private loans, so it will be a great advantage for young people who are considering continuing their studies after university.
National Insurance contributions from young apprentices will now be abolished.

Personal taxes

The personal tax allowance will be raised to £10,600 next year, and the Higher rate tax band will be raised to £42,385.
When someone dies, their husband or wife will be able to inherit their ISA and pension tax free.
The inheritance tax exemption will cover aid workers who lose their lives dealing with humanitarian emergencies.


Osborne announced that the Government is on track to meet its welfare cap commitments.
There will be a two year freeze in working age benefits- meaning they will not looked to be increased, even in line with inflation, for the next two years. Migrants who have “no prospect” of work will lose unemployment benefits after six weeks.

Savings and Pensions

The ISA threshold has increased from £15,000 to £15,240. Osborne has announced a commitment to complete public service pension reforms, which may apparently save £1.3bn a year. Pension bond rates will be announced at the beginning of next year.


Business rates are going to be renewed, and a package to boost bank lending to small and medium-sized businesses (SMEs) has been confirmed. The Treasury has pledged £400m to extend government-backed venture capital funds which invest in SMEs, called Enterprise Capital Funds. It also said it would guarantee up to £500m of new bank lending to SMEs. This means smaller businesses will find it easier to lend money, as the government will guarantee 75% of an SME's bank loan, with the lenders covering the remaining 25%.
There will be a 25% tax on profits from activity in the UK for companies that shift profits offshore, which is predicted to raise £1bn over the next five years.


The cost of air tickets for children is likely to go down, as Air Passenger Duty for children under the age of 12 will be abolished next year, and it will be abolished for under 16s the following year. Airlines will also be required to list the charges separately from taxes on tickets.
On the roads, as expected, drivers will not see a rise in fuel duty as it has been frozen again.

Flood Defences

An extra £2.3 billion has been out aside for floor defences, and Businesses will be given tax relief for investing in flood defences. These policies have been created to encourage infrastructure, as construction output is down 11 per cent since the Coalition came to power in 2010.

What now?

George Osborne closed the speech by saying the Conservatives long term economic plan is well on course for prosperity. The UK may be looking at a further squeeze as Osborne admitted there will be “substantial" savings in public spending in his 2014 Autumn Statement. He also admitted that borrowing will be £91.3bn this year - higher than the forecast £87 billion. There have been cuts and freezes to welfare, and there was no mention of the UKs problem of child poverty which is currently on the rise.

On the other hand, the UKs economy has shown growth over the past year, and the Chancellor believes the UK will be “out of the red” and into surplus by 2020. The Deficit has been “cut in half” since 2010.

It seems only time will tell whether the announcements made in the Autumn Statement will be beneficial to the UK, and if the promises George Osborne has made are able to be kept. Visit our website for all the latest news on the economy, as well and the financial matters that really made a difference to you.

Need Financial Advice?

If you have any personal finance questions related to the Autumn Statement, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.

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