The Chancellor’s Autumn Statement 29th November 2011: What you need to know..,.

George Osborne gave his report to MPs on the state of the economy and made a number of proposals some of which are summarised as follows:

The UK economy has slowed down but is unlikely to go into recession. Economic growth is forecast at 0.9% for 2011

0.7% 2012

2.1% 2013

2.7% 2014

2% 2015

Borrowing is forecast to be 127 billion pounds 2011/12 falling to 120 billion, 100 billion 79 billion and 53 billion by 2015/16.

Debt as a proportion of GDP is expected to peak at 78% in 2014/15 and then fall thereafter.

The Chancellor proposed a cap on public sector pay of 1% for two years after the current freeze ends. This is down from 2%.

State pension age is set to rise to 67 from 2026 brought forward from 2034.

Regulated rail fares are to be capped at 6% - 1% above inflation from January.

The planned 3p fuel duty rise in January is to be scrapped. However duty will go up by 3p in August 2012.

State pension is to rise by £5.30 next year to £107.45 per week.

The Office for Budget Responsibility (OBR) has forecast total public sector job losses to go up from 400,000 to 710,000.

A credit easing programme is to be introduced to underwrite up to 40 billion pounds in low interest loans to small and medium sized firms.

There will be a 1 billion pounds business finance partnership to raise money for medium sized firms and a regional growth regeneration fund of one billion pounds in extra funding.

Although green programmes have been welcomed the Chancellor said cutting the output of energy intensive firms such as those making steel was not appropriate. There will be a 250 million pound support package for energy intensive firms and 500 million pounds for science. The business rate holiday relief for small firms is to be extended to April 2013.

A new stick and carrot youth contract is to be introduced, setting aside 1 billion pounds to subside six month work placements for 410,000 young people.

An additional 1.2 billion pounds of extra spending in schools is to be introduced: half to councils for more school places and half for an additional 100 free schools.

A mortgage indemnity scheme is to be introduced to help up to 100,000 people buy homes with a 5% deposit.

There will be a 50% discount for social tenants wanting to buy their own homes in England.

Infrastructure spending is to be boosted: 5 billion pounds  in new spending over three years, including 1 billion pounds for the rail net work and the go ahead for thirty five rail and road projects across England.

There is a plan to use up to 20 billion pounds of money from pension funds for new investments: British savings for British jobs.

The Capital Gains Tax threshold is to be frozen and the rate for Corporation Tax is to fall to 25% from April 2012.

The use of the Channel Islands for low value VAT rate sales is to be brought to an end.

Planning law is to be reformed including the introduction of new time limits.

If you have queries about whether these proposals will have an immediate impact upon your business please contact Denise Shelton on 01708 784093  or deniseshelton@mplaw.co.uk or whether it might affect you personally please contact Jeremy Davies on 01708 784081 or jeremydavies@mplaw.co.uk