Autumn Statement 2014: What to expect

Chancellor of the exchequer George Osborne is due to give his Autumn Statement today (Wednesday 3 December) at 12:30pm. So what can be expected?


By Sarah.Aston

03 Dec 2014

Back in September, outgoing head of the civil service Sir Bob Kerslake indicated that further government cuts should be expected warning civil servants and the public that “the first five years [of austerity] have been challenging, but the second five years are likely to prove even harder.” 

A large part of the Statement is, therefore, expected to focus on a commentary of the deficit progress and government plans to ensure their objective to eliminate the budget deficit by the end of this parliament. 

But what else will be included this year? Dods Monitoring have rounded up a number of key topics that could be included.

£1bn sell-off of government land:

The government is expected to announce further measures to sell-off £1bn of government-owned land in a bid to create more affordable housing

Abolition of air passenger duty (APD) for children under 12:

Welcomed by the industry, it is believed that the government will announce plans to abolish the 20 year old APD

Freeze in petrol duty:

Fuel duty has already been frozen until May 2015 but it has been suggested that the chancellor has ruled out increasing that duty after May

Tax cuts for widows and widowers who inherit annuity pensions:

The chancellor is expected to outline changes to the pensions system and that future income payments a surviving partner receives from a joint life annuity will be tax-free if the scheme member dies before the age of 75

HS3, Northern powerhouse and business rates:

Osborne has already suggested he will outline measures for a more "London-style" self-rule approach to be rolled out in Leeds, Sheffield and Manchester but it has been speculated that the Chancellor may also announce proposals to allow local authorities in the North to keep a greater portion of business revenues raised from local business rates as part of his Northern powerhouse scheme

Sovereign wealth fund - Shale Gas:

Following the announcement of the first national UK shale college, it has been confirmed that the government is preparing to announce plans for a "sovereign wealth fund with the money that comes from shale gas"

EU surcharge:

It is anticipated that Osborne will comment on the recent controversy around a £1.7bn surcharge the UK will have to pay the EU

Competitiveness of the UK tax administration:

Financial secretary to the Treasury David Gauke told delegates at the HMRC's 2014 autumn stakeholder conference that the chancellor will respond to the Office of Tax Simplification's final report on the competitiveness of the UK tax administration, published in October

Devolution of corporation tax powers:

Following the government policy paper 'Building a prosperous and united community' that committed government to make a decision on whether to devolve corporation tax powers to Northern Ireland by the Autumn Statement, it is expected that Osborne will announce a decision

Pensions reforms: 

The chancellor is expected to discuss pension reforms outlined in the previous Budget

Public finances:

Alongside every Autumn Statement, the government publishes analyses of the cumulative impact on households of all coalition changes and it has been confirmed by chief secretary to the Treasury that this will be presented 

Welfare spending:

Secretary of state for work and pensions Ian Duncan Smith confirmed that the Autumn Statement will include the Office for Budget Responsibility's figures in welfare spending

Green Climate Fund:

Osborne is expected to announce £1bn in funding for an international Green Climate Fund 

Tax avoidance: Technology firms:

The chancellor is expected to announce plans to crack down on firms that use schemes to avoid paying tax

 

For the full report on what can be expected in the Autumn Statement, click here.

 

 

 

 

 

 

 

 

 

 

 

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