Autumn Statement

Today the Chancellor made his “autumn” statement to Parliament which is making some big headlines. Here are the main points you need to be aware of:

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Fuel

The biggest headline of the statement is that George Osborne has cancelled his planned 3p-a-litre increase in fuel duty which was due to take place in January.

Economic Growth

It is predicted the economy will shrink -0.1% in 2012 which is a dramatic drop compared to the 1% increase which was predicted in his original budget.

Business

Unemployment is expected to peak at 8.3% this year but it should reduce each year.

An extra £1bn will be invested into the Business Bank.

Main rate of corporation tax will be cut by an extra 1% to 21% in April in 2014.

Transport and Infrastructure

An extra £1bn is to be spend on upgrading the road network including the A1, A30 and M25 as well as a £1bn load to extent the London to Battersea Northern Line.

There will be an expansion of the Ultra-fast broadband roll out plans and the annual infrastructure investment will now be £33n.

Pensions and Benefits

The Chancellor announced that there would be a rise to both the state pension and the child benefit. The basic state pension rate was to rise by 2.5% next year to £110.15 a week and the child benefit will be increased by 1% for another two years.

Overall there are some positive headlines to come out of the statement however the economy is worse than was expected. For a full run down of the budget, check out the Guardian’s live feed.

What did you think of the budget? Did you expect more? Let me know your thoughts…

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About cashflowkiller

Hi! I’m James and am passionate about my small businesses. A strong cashflow is vital for us so I will be curating the latest on cashflow and business news.

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