29 November 2010

Chancellor of the Exchequer George Osborne has given his Autumn Budget Statement, in response to the latest forecasts for the UK economy released by the independent Office for Budget Responsibility (OBR).

Unlike in previous years, the Chancellor did not make any major tax or spending announcements this Autumn, with those instead being put on hold until the next Budget, which will take place on 23 March 2011.

Summary

• UK economic growth in 2010 revised up from 1.2 per cent to 1.8 per cent. Growth in 2011 revised down from 2.3 to 2.2 per cent, and in 2012 from 2.8 to 2.6 per cent.
• Job losses from public spending cuts by 2014-15 revised down from 490,000 to 330,000.
• OBR predicts continued recovery from recession, but at ‘sluggish’ pace.
• Public sector borrowing to peak at 69.7 per cent of GDP in 2013/14, before falling to 67.2 per cent by 2015/16.
• Unemployment to peak at 8.1 per cent next year, falling to around six per cent by 2015.
• Inflation set to fall from current level of 3.2 per cent to 1.9 per cent in 2012.
• Consultation on further simplification of corporate tax regime announced.
• New 10 per cent tax rate on income from newly-commercialised patents from April 2013.
• Cross-departmental Growth Review to consider how all areas of government can offer further support to entrepreneurs.