Autumn Statement 2013 - Need to Know:

Key points

“Britain’s economic plan is working, but the job is not done,” the chancellor George Osborne said in one of the most leaked statements in history.

“Responsible” was the key word from the chancellor’s 50 minute speech.

£100m of Libor fines will be made available to military charities and to extend support in the police, fire and ambulance services.

April 2014 will see the state pension rise by £2.95 per week, meaning pensioners will be £800 better off every year.

Based on the latest life expectancy figures, it was announced that the government plans to increase the state pension age earlier than originally planned. It will be increased from 68 in the mid-2030s to 69 by the late-2040s.

The fall in GDP from peak to trough between 2008 and 2009 was not 6.3 per cent as previously thought. It was 7.2 per cent instead.

From April 2015, a new transferable tax allowance will be made available for married couples. Available to all basic rate taxpayers, it enables people to transfer £1,000 of their personal allowance to their wife, husband, or civil partner.

big numbers

0.4 per cent - The percentage the OBR predicts the eurozone will shrink by in 2014.

7.2 per cent - The revised decline in GDP in 2008-09, increased from the original 6.3 per cent originally predicted.

43 - The number months the coalition has been in charge of government.

400,000 - The number total new jobs is expected to rise by December 2014.

1.5m - The amount of jobs for young people under 21 that National Insurance contributions will be removed from.

£300m - The amount the housing revenue account borrowing limit will be increased by.

£111bn - The amount the government will borrow this year, falling in 2014-15 to £96bn, falling to £79bn in 2015-16, £51bn the year after and £23bn the year after that.

Need to know:

The statement in brief

•           From next year, the government will introduce   a new cap on total welfare spending.   However, state pension will be excluded. The   chancellor said this is “better controlled over a   longer period”.

•           In line with the move on Aim shares last year,   exchange-traded fund stamp duty will be   abolished. This is a drive to encourage funds to   locate in the UK.

•           From April 2014, the UK will be one of the   first countries to introduce a tax relief for   investment in social enterprises and new social   impact bonds.

•           The two Help to Buy schemes have already   helped many new home owners. It was   announced Aldermore and Virgin are   expected to join the scheme in December   2013.

•           The business rate relief scheme for small   businesses, which was due to end in April   2014, will be extended for a further year.   Additionally, inflation increase for all business   premises will be capped at 2 per cent from   2014.

•           KPMG’s report last week confirmed for the   second year running, Britain has the most   competitive business tax system.

•           Fuel duty will be frozen instead of going up by   2p a litre.

OBR figures

Figures from the Office of Budget Responsibility (OBR) shows:

•           It has “reassessed the depth of the great   recession”.

•           It has revised its UK growth forecast for 2013   from 0.6 per cent to 1.4 per cent. It has also   increased for 2014 from 1.8 per cent to 2.4 per   cent. For the next four years, it sees growth at   2.2 per cent, 2.6 per cent, 2.7 per cent and 2.7   per cent.

•           The OBR still forecasts the eurozone will

  shrink by 0.4 per cent this year.