Autumn Statement 2013

Accountancy firm Morris Owen have highlighted the key topics addressed in George Osborne's Autumn Statement and speculated how they will affect you and your business:

Delivering the 2013 Autumn Statement, the Chancellor said the latest forecasts from the Office for Budget Responsibility proved that "Britain's economic plan is working" but warned that the "job is not done."

George Osborne stressed that:

• The deficit is lower but it's still too high
• Growth is up but productivity is too low
• Businesses are expanding but exports could be better
• Disposable incomes are improving but households are still struggling with the cost of living

It was the introduction to an Autumn Statement he said was designed to secure the economy for the long term. Britain, said the Chancellor, needs "a Government that lives within its means" if it is to be "a country that pays its way in the world."

This report provides a concise summary of the announcements made in the 2013 Autumn Statement.

The Economy

"Britain's economic plan is working", said the Chancellor George Osborne. But "we need to secure the economy for the long term," he added, before making it clear that deviating from the 'plan' presents the greatest risk to that security.

Personal Finances

September 2014's planned fuel duty increase has been scrapped. Train fares will increase in January in line with inflation only - not by the previously announced inflation plus one per cent. And basic rate tax payers will be able to transfer £1,000 of their personal allowance to a spouse or civil partner from 2015/16.

Business Announcements 

The headline business announcements were on rates. A two per cent cap on next year's increase in business rates was confirmed. The doubling of the Small Business Rate Relief, to 100 per cent for qualifying businesses, was also extended by a year until April 2015.

Savings, Investments and Pensions

As expected it was confirmed that the basic state pension is to increase by £2.95 per week from April 2014. Stamp duty on Exchange Traded Fund (ETF) purchases is to be abolished.

Other Announcements 

From September 2014, all schoolchildren in reception, year one and year two - as well as disadvantaged students in sixth form colleges - will be eligible for free school meals. And the paper tax disc will be replaced by a new digital system from October 2014.

Contact Morris Owen on 01793 603900 to discuss measures that may be relevant to you or your business.