The Autumn Statement in detail 

2016 has certainly been a tumultuous year, with Britain’s decision to leave the EU continuing to have an impact on both the economy and many UK businesses. 

The new Chancellor of the Exchequer, Philip Hammond, acknowledged ‘sharp challenges ahead’ for the economy as he presented his first fiscal statement exactly five months after the UK’s historic vote to leave the European Union.

The main summary on the economy and spending is slower growth, higher inflation, weaker tax receipts and higher borrowing. The latest forecasts from the Office for Budget Responsibility (OBR) confirmed an increase in borrowing, now expected to reach £68.2bn this year. Economic growth is expected to slow over the next two years. Overall, the ‘Brexit effect’ is expected to impact on economic growth to the tune of 2.4%.

The Statement at a glance:

• Reduction in corporation tax rate confirmed
• New £23bn National Productivity Investment Fund
• Personal allowance to increase as planned
• Significant changes to Flat Rate VAT scheme
• National Living Wage and National Minimum Wage to rise
• Autumn Statement to be abolished, and Budget moved from Spring to Autumn