UK Autumn Statement

George Osborne

The Chancellor of the Exchequer, George Osborne, delivered the UK’s Autumn Statement and Spending Review on 25 November. Here we have a comprehensive list of all announcements which will have an impact on business.

Key announcements:

Other announcements:

  • UK economy predicted to grow by 2.4% in 2015, 2.4% in 2016 and 2.5% in 2017.
  • Budget surplus of £10.1bn in 2019/20 – 5 in 6 businesses back the plan.
  • HMRC to be digitised – will be simplify tax collection and will be welcomed by business.
  • 26 new or extended Enterprise Zones. Carlisle, Dorset and Ipswich some of 15 new Zones.
  • £12bn local growth funds to fund LEPs to continue.
  • Devolution of Business Rates to Local Government- Local Authorities can reduce to benefit business and elected Mayors can raise to spend on specific infrastructure projects.
  • Northern Ireland to keep 12.5% corporation tax.
  • Biggest road infrastructure investment since 1970s.
  • Delayed removal of diesel supplement for company cars until 2021.
  • Aerospace and Automotive industries will continue to be supported until the end of the decade.
  • Spending on Catapult Centres will increase.
  • Sceince budget protected in real terms until 2020.
  • £75m expansion of Cavendish laboratories.
  • £3bn apprenticeship levy for large businesses (set at 0.5% of pay bill) – businesses under £3m will be exempt.

General

  • UK best place in EU to start a business.
  • Sixth best place to do business in the world.
  • Corporation tax will fall to 18% by 2020.
  • 1m new jobs by 2020.

Small Business

  • Small Business Rate Relief extended until April 2017.
    • 405,000 will receive full relief.
    • 200,000 will benefit from tapering relief.
  • Introduction of new finance products to support companies to innovate.
    • Will replace existing Innovate UK grants.
    • £165 million per year by 2019-20.
    • Total Innovate UK support is maintained in cash terms.

Infrastructure

  • Investing over £100 billion in infrastructure.
  • Extends the availability of the £40 billion UK Guarantees Scheme to March 2021.
  • Increase in transport investment by 50% to £61 billion over the Parliament – including starting construction on High Speed 2, spending £13.4 billion on the Roads Investment Strategy (mainly in North) and over £5 billion on roads maintenance.

Investment

  • £6.9 billion investment in science and research capital.
  • Protection of £4.7 billion science resource funding in real terms.
  • Energy innovation doubled.
  • £250 million invested in an nuclear research and development programme.

Apprenticeships

  • 3m more apprenticeships by 2020.
  • Comes into effect in April 2017, at a rate of 0.5% of an employer’s pay bill.
  • A £15,000 allowance for employers will mean that the levy will only be paid on employers’ pay bills over £3 million.
  • Less than 2% of UK employers will pay the levy.

The Channel Group

The Channel Group is an independent think tank established to champion free trade.

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